Wine Industry in Canada

Topics: Wine, Winemaking, Fermentation Pages: 33 (11103 words) Published: June 10, 2012
Wine Industry in Canada|


This project is a small scale analysis of the wine industry in Canada for purposes of learning how to use market research techniques as outlined in the course. The statistical information available through the Statistics Canada sites, Canada Agricultural pages and Canadian Government Industry site was used and data available could be analyzed up to year 2010. The information was collected from the abovementioned sources and put into format that describes the industry’s present standing within the overall Canadian industry. The industry is relatively small even when compared to other liquor and spirits industry parts. Also, there are only two big players on the Canadian market, while the majority of companies are medium and small businesses.

In this study, a brief analysis of the wine industry market using Porter’s five forces theory was done. For determining the industry attractiveness and profitability, two biggest companies that have the market share of 37.7% are analyzed and comparison made to smaller players on the market. Also, it is worth noticing that most of the analysis focuses on the study of wines made out of grapes. The data for part of industry that makes wines from other fruits were less available and therefore not reviewed in detail. The analysis started with a brief wine history in Canada since the knowledge of industry history is also important in understanding today’s industry standing. The description of the industry structure and the size of the market regarding annual sales, employment and types of products are also given for the whole Canadian market. Future market value forecast until year 2014, analysis done by VINEXPO/IWSR, is presented in the report. Finally, some of the newest future opportunities for Canadian wine industry are discussed as our Prime Minister visited China recently and among other subjects touched the growing opportunity for Canadian wine industry to enter Chinese market.

1. Introduction
I chose to do this analysis on wine industry in Canada because I thought that it would be a fun project to do since it involved a product that I know only from a fun side of the story, as a consumer who gets to choose and explore different wines. I remember the time when I first came to Canada, to province of Newfoundland and heard that my friend got his first job at Rodrigues Winery in St. John’s. It was rather a shock for somebody who came from a Mediterranean country to find out that there is such a thing as a winery in Canada, especially in Newfoundland where the winter seemed to last even through the summer months.

After living here for number of years now, I am more familiar with Canadian wines. Doing this project gave me the opportunity to expand on this knowledge and to understand the industry in more depth. In Canada, there are four provinces where the wine is made out of grapes that are grown in the area and these are Quebec, Ontario and British Columbia in greater extent and Nova Scotia in smaller extent. All other provinces produce wine made of other fruits, mostly of different berries, and even apples. Today, in Ontario, we can witness dozens of wine stores that sell only Canadian or just Ontario wines. In Ontario, which is also the biggest player of all Canadian provinces in the domestic wine production and has the greatest number of wineries, there is a campaign to market and protect the local wine products. This is possibly due to the fact that the industry is the strongest here in Ontario and has more resources to invest into marketing venues more than other provinces in Canada. I am also more familiar with wine events in Ontario than similar events in other provinces because I can observe them here locally every day.

Today, there are more than 700 wineries in Canada, of which only two are standing out as big players with some noticeable market share. Canadian wine...
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