Alberta consumers can now purchase directly from B.C. wineries; local retailer calls it ‘a bad deal’

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As the interprovincial agreement allowing British Columbia wineries to sell direct to Alberta consumers comes into effect this week, one owner of a Calgary-based wine retailer is calling it a “bad deal.”

Approved B.C. wineries were allowed to resume selling directly to Albertans effective Monday, months after the announcement of an interprovincial deal ended a simmering feud between the wineries and the Alberta government.

The deal allows Albertans to order from more than 300 B.C. wineries in exchange for the provincial government getting its share of applicable taxes.

Andrew Ferguson, owner of Kensington Wine Market, called it “a bad deal” that benefits businesses in B.C. to the detriment of Alberta businesses.

“I think Alberta gave away too much for not enough in return,” Ferguson said, adding the deal cuts out Alberta importers and retailers.

“This is a way for the wineries to go around retail, which, as an established retail business, is pretty frustrating.

“The government is getting their tax — I guess they don’t really care,” he added.

“My business loves supporting B.C. wines. I just think that this was a bad deal that our government (made),” he said.

The deal means Kensington Wine Market will be more selective about which wineries it chooses to work with, Ferguson said.

“If they’re selling wine to consumers at prices that are comparable to our wholesale price, we just won’t stock their wines,” he said.

In January 2024, Alberta Gaming, Liquor and Cannabis told B.C. wineries that direct-to-consumer sales were voiding regular taxation channels and breaching provincial legislation. Wineries were told to halt sales and shipments to Albertans’ doorsteps, or AGLC would deny wholesale shipments and stop stocking products for purchase by local retailers and restaurants.

At the time, the agency said those offering direct-to-consumer shipping were sidestepping Alberta laws and siphoning money from its general revenue fund.

The impasse took on toll on the B.C. industry, with one B.C. producer at the time telling Postmedia the bottleneck had forced the hand of producers already struggling with a string of tough growing years.

The B.C.-Alberta “wine war” seemingly came to an end with the announcement of the interprovincial agreement in July.

B.C. Premier David Eby said in a statement that the new program is “a win” for wineries and for communities that rely on the wine industry.

“By working collaboratively with Alberta, we’re supporting economic growth and strengthening ties between our provinces,” Eby said in the news release.

The Alberta DTC wine program: How does it work?

B.C. wineries must be approved by AGLC to sell products through the Alberta DTC wine program,

Interested wineries were able to start the approval process on Dec. 9, a process that can take two to four weeks to complete, according to AGLC’s website.

Approved wineries were able to start shipping to Alberta customers on Jan. 6.

Participating wineries are required to submit a monthly report tracking their shipments. Fees associated with direct-to-consumer wine sales are collected by the AGLC, including an administrative fee, GST and container and recycling amounts.

The agreement will run for one year, at which point it will be evaluated for its effectiveness.

— With files from The Canadian Press.

NoBrennan@postmedia.com