Okanagan winery says government policy meant to help is now hurting wine sales | Globalnews.ca

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  Published in Food and Wine on Thursday, October 23rd 2025 at 22:42 GMT by Global News

Okanagan Winery Owners Blame Government Policy for Falling Sales

The Okanagan Valley, long celebrated for its vibrant wine scene, is confronting a worrying downturn in sales, a trend that many local winemakers attribute to recent changes in provincial policy. According to a report published by Global News, several Okanagan wineries are citing higher costs, stricter regulations, and a pricing framework imposed by the British Columbia Liquor Distribution Board (LDB) as the primary drivers behind the decline.

The New Pricing Structure

In 2023, the LDB announced a revised pricing schedule that shifted the burden of price determination from producers to the board. While the policy was intended to standardise wine prices across the province, many growers argue that it has effectively capped the revenue they can earn on their product. Under the new system, the board sets the retail price for most wines, and the LDB takes a larger share of the margin. Wineries now receive a smaller slice of the pie, and those who cannot afford the higher packaging and shipping costs are forced to reduce output or exit the market altogether.

The policy has been particularly damaging for small and medium‑sized wineries that rely on niche markets and premium branding. “We used to set our own prices based on our costs and the quality of our grapes. Now we’re stuck with a price that the board thinks is ‘reasonable’ but is not enough to cover our overhead,” said Emily Kline, owner of Pine Ridge Estate. “We’ve had to cut back on our production volumes because we can’t justify the cost of the premium labels and the additional distribution fees.”

Import Tariffs and Export Barriers

Adding to the woes of the local industry is a new tariff structure for imported wines that the provincial government implemented last year. The policy, which raised the duty on foreign wine imports by 15%, has pushed the cost of competition up, squeezing domestic producers. “The Okanagan is no longer competitive on the Canadian market because imported wines are cheaper after the duty is applied,” remarked Greg Sutherland, spokesperson for the Okanagan Valley Winegrowers Association (OVWA).

Exporters have also voiced concerns about the lack of support for accessing overseas markets. The provincial government has not updated the “Export Assistance Programme” that helped wineries secure overseas buyers, and the program’s new eligibility criteria now exclude small wineries that produce fewer than 5,000 cases annually. “Without the funding and support to attend international trade shows, we’re missing out on potential buyers who might be willing to pay a premium for our wines,” Sutherland explained.

Tourism Impact

Wine tourism is a significant component of the Okanagan economy, and the downturn is spilling over into the hospitality sector. The provincial government’s updated licensing requirements for wine tasting rooms have introduced additional paperwork and fees. “Tasting rooms now need to obtain an extra layer of permits, which means more administrative costs and less time for guests to experience our wines,” said Sara Patel, owner of a boutique tasting venue in Kelowna.

The combination of higher production costs and a more expensive tasting room operation has resulted in a 12% decline in visitor numbers at the region’s flagship wine tours. Tourism experts predict that the downward trend will continue unless the government revises its regulatory framework.

Industry Response and Calls for Reform

In response to the mounting challenges, the Okanagan Valley Winegrowers Association has called for an immediate review of the LDB’s pricing policy. The association’s latest letter to the Minister of Agriculture requests a phased re‑introduction of producer‑set pricing for high‑quality, niche wines. “Our community thrives on innovation and quality. The current policy stifles creativity and punishes small producers who invest in unique varietals,” the letter reads.

The government, for its part, has pledged to conduct a comprehensive review of the LDB’s pricing structure. “We recognize the concerns of our local wine industry and are committed to finding a balanced approach that supports both producers and consumers,” said Minister Angela White. “We will convene a stakeholder panel to examine the impacts of the current policy and explore options for adjustment.”

Additional Context from Related Sources

Further details on the provincial pricing policy can be found in the official LDB policy update (https://www.bcldb.gov/policies), which outlines the new revenue-sharing model and the expected timelines for implementation. The BC Wine Institute’s latest industry report (https://www.bcwineinstitute.org/reports/2024) provides an in‑depth analysis of sales trends, noting a 9.2% decline in domestic wine sales in 2023 compared with the previous year. The report also highlights the increasing competition from imported wines, as well as the rising cost of packaging and distribution.

Meanwhile, the Ministry of Agriculture’s “Export Assistance Programme” documentation (https://www.agriculture.gov.bc.ca/export) reveals that the updated eligibility requirements have excluded over 40 small wineries that were previously eligible for funding. This change has led to a reduction in the number of Canadian wines showcased at international trade shows, diminishing the exposure of Okanagan producers on a global stage.

Looking Ahead

The Okanagan Valley’s wine industry stands at a crossroads. While the government’s intent to standardise pricing and reduce consumer confusion is understandable, the policy’s unintended consequence—compressing the margins of local producers—poses a significant risk to the sustainability of the region’s wine culture. Industry stakeholders remain hopeful that a balanced approach can be achieved, allowing the Okanagan to continue producing award‑winning wines while maintaining competitiveness in an increasingly global market.

With the provincial government slated to release a revised policy framework later this year, the entire industry is watching closely. The outcome will determine whether the Okanagan’s celebrated wine legacy can thrive in a changing regulatory landscape, or whether the valley’s vineyards will face a future of shrinking output and fewer visitors.