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ECONOMIC IMPACT

The Economic Impact of the Wine and Grape Industry in Canada is the most comprehensive study conducted on the Canadian wine and grape industry and aims to improve our understanding of how Canada’s wine and grape industry benefits our national economy.

It examines the supply chain linkages, the income effects associated with people spending wages they earn, the fiscal implications for federal and provincial governments, and the effect of related income remittances from people who work in tourism, hospitality, etc., revealing a prosperous and expanding $11.57 billion-dollar industry in 2019

Canadian Wine and Grape Industry Contributes $11.57 Billion in Economic Impact to Canadian Economy

Ottawa, ON – August 4, 2022 – Wine Growers Canada (WGC) and its partners are pleased to release the findings of the most research study conducted on the Canadian wine and grape industry, which reveals that the economic impact of the Canadian grape wine industry has grown by over 70% to $11.57 billion over the period 2011-2019.

Commissioned by Wine Growers Canada, Wine Growers Ontario, Wine Growers British Columbia, and Wine Growers Nova Scotia, the report entitled Canada’s Wine Economy – Growth and Innovation Through Global Challenges illustrates the magnitude of the Canadian grape and wine industry’s contribution to the overall Canadian economy.

“Winemaking is Canada’s highest value-added agriculture product, rooted in Canadian soil, producing high quality wines and significant economic benefits for all Canadians. The Canadian wine industry grew by over 70% between 2011 and 2019 driven by investments in research, innovation, sustainability and capacity,” said WGC President and CEO Dan Paszkowski. “Our 638 wineries, largely small, family-owned businesses, create jobs, pay significant taxes, and boost regional, provincial and national economies alike,” he added.

Canadian winemakers support a broad network of related industries in rural and regional centres across Canada ranging from laboratory research, vineyard operations through to distribution, retail and hospitality The number of Canadian grape wineries increased from 476 in 2011 to 638 in 2019 contributing to a 49.6% increase in the number of full time employees and nearly 104.1% increase in total wages paid by the industry.

The Economic Impact of the Wine and Grape Industry in Canada’s 3rd edition is the most comprehensive study conducted on the Canadian wine and grape industry and aims to increase our understanding of how Canada’s wine and grape industry benefits the national and regional economies.

Despite the significant increase in the number of Canadian wineries and total wine production, profitability in the sector continues to be suppressed by increased operating costs and lower sales prices established by heavily-subsidized imported wines that comprise approximately 70% of all wine sales in Canada.

“While our industry experienced remarkable growth between 2011 and 2019, wine growers began to face numerous challenges beginning in 2020; severely reducing sales due to pandemic-related retail, tourism, restaurant and event closures, major climate events, new international trade agreements, and competition from highly subsidized imported wines,” added Paszkowski. “The initial 2020 pandemic-related data is troubling. The entire industry is working diligently to grow back stronger in the face of global and domestic challenges.”

According to the report the effects of COVID-19 in 2020 reduced the industry’s economic impact on the Canadian economy by an estimated -16.5%, wine-industry related jobs contracted by as much as 23.1%, especially in the retail, tourism and hospitality segments due to border closures, travel and indoor-dining/activity restrictions.

Canadian Wine and Grape Industry Economic Impact 2019 Key Findings:

 

    1. The Canadian wine industry’s $5 billion economic impact is a significant driver to the Canadian economy, an increase of 71.1% since 2011.
    2. The wine and grape industry is responsible for more than 45,245 jobs and $2.4 billion in wages across Canada from manufacturing, agriculture, tourism, transportation, research, restaurants and retail.
    3. Wine-related tourism welcomed more than 1 million visitors, generating more than $1.96 billion in tourism revenue and employment.
    4. The wine industry generates over $2.2 billion in federal and provincial tax revenue and liquor board markup.
    5. An average bottle of wine produced in Canada generates approximately $11 of business revenue, $6.15 of tax revenue and $9.58 of wages.
    6. For every $1 spent on Canadian wine in Canada, $3.20 in business revenue is generated across the country.

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