Alberta and British Columbia have settled a six-month trade dispute over wine sales between the provinces by agreeing on a virtual marketplace for their products.
AGLC said it was banning inbound shipments from wineries unless the producers agreed to stop shipping directly to consumers. It said the move was to maintain the integrity of Alberta’s liquor model and to protect retailers and liquor agents in the province.
On July 16 Alberta Premier Danielle Smith and B.C. Premier David Eby announced they had signed a memorandum of understanding that will permit wine producers in each province to sell directly to consumers.
Premier Eby said he was pleased that wine producers in B.C. would be able to resume direct sales to Alberta residents. He called the B.C. wine industry a “source of pride in British Columbia.”
One of the concerns Alberta had with direct-to-consumer sales was wine producers being able to avoid paying tax, according to an Alberta Government news release.
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The release said “those issues have now been addressed.”
Premier Smith said the government was concerned about “fair treatment” between retailers.
“If you’re going to be selling into our market, you have to be treated the same way as every other person who is buying it through a liquor store,” she said during a news conference.
“We’re going to create a virtual warehouse to make sure that those fees are collected and rebated and we’re going to work to see if we can also find ways to expand the offerings in both provinces and I think that’s an important step to try to make sure that the producers of wine in both provinces have an opportunity to sell in both markets.”
“The agreement also means that we can ensure consistent charges are applied to all wines sold in Alberta,” Premier Smith said, adding that the agreement will be reviewed in a year.
“We‘ll take a look at how things are working, and we’ll revisit our agreement,” she said.
The Greater Vancouver Board of Trade welcomed the news.
Wine Producers Concerned
In response to the original Alberta complaint, the Wine Growers of British Columbia responded in January that AGLC jurisdiction was limited to Alberta and its authority did not extend to wine producers in B.C.
The wine growers had questioned “the political motivation” behind the complaint, saying it was “disheartening for our local growers and producers, who have already suffered great financial hardships over this past year.”
Miles Prodan, president and CEO of the organization said, “A working free-trade relationship between Alberta and British Columbia is imperative to the economic wellbeing of the entire country.”
He said Minister of Public Safety and Solicitor General Mike Farnworth met with his counterpart in Alberta to urge them to stop the action.
The Canadian Press contributed to this article.
