British Columbia wineries and distilleries could soon have a new way to reach customers outside the province, but industry leaders are divided over whether expanded direct-to-consumer alcohol sales will remove barriers or create more red tape. The premiers of nine provinces announced Tuesday they will move forward with changes allowing brewers, wineries and distillers to sell alcohol directly to consumers in other provinces, with the new system expected to take effect early next year. For producers like Unsworth Vineyards in the Cowichan Valley, the change represents a potential opportunity to grow beyond the B.C. market. The winery produces about 12,000 cases annually, with a portfolio that includes pinot noir, chardonnay, pinot gris and sparkling wines. Sales and marketing director Chris Turyk said business has been strong and continues to grow. Three years ago, the winery planted a new vineyard to help meet rising demand, a decision he says came at the right time. “I think this is going to be fantastic, but only time will tell,” Turyk said. He said there is cautious optimism among many producers across B.C.’s wine industry, with hopes the changes will make it easier to connect directly with customers outside the province. But not everyone in the industry is convinced the move will deliver meaningful change. Tyler Dyck, president of the Craft Distillers Guild of B.C., said the announcement is a political win, but he questions whether it addresses the biggest challenges facing producers. “It’s a political hearts and minds win, but it’s a problem that doesn’t need fixing,” Dyck said. Dyck said he would like to see the new system follow what he considers the ‘gold standard’ allowing direct-to-consumer shipments between B.C. and Ontario without additional tariffs or industry markups. “Where they allow direct-to-consumer shipments both ways without charging a tariff or what is called a mark-up in the industry,” he said. He believes the model being considered could instead resemble an agreement between Ontario and the Maritime provinces, which would allow direct-to-consumer alcohol sales but could include additional regulatory requirements. Dyck worries that approach could increase costs for producers and eventually consumers. “It is a mark-up, counter mark-up, regulatory, counter regulatory,” he said. “It’s just putting up more walls, but now there are going to be more robust walls with red tape and a lot of expense in them.” Turyk said the biggest question now is how each province will put the new rules into practice. “What is multiple levels of government without bureaucracy and without red tape,” he said. The details of the new framework, including how provinces will regulate shipments and fees, are expected to become clearer before the changes take effect. Despite the uncertainty, Turyk believes expanding direct-to-consumer sales is a positive step for an industry that relies on connecting with customers. “A step in the right direction is still a step in the right direction,” he said. For B.C. producers, the coming months will determine whether the changes create a more open marketplace, or simply replace old barriers with new ones.
