Choices

Impact of Tariffs on the Canadian Wine Industry

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Tariffs and retaliatory measures significantly hurt Canada’s wine industry by increasing the cost of U.S. grape must and juice needed by many winemakers, while also indirectly harming wineries through higher costs for imported packaging and equipment. On the other hand, provincial bans on U.S. wine improved sales for domestic Canadian wines. However, should this increased demand continue, wineries may need to enhance their operations.

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Wine production costs have increased for wineries that purchase grape must (crushed grapes) from the U.S.  Tariffs on steel and aluminum from the U.S. have increased the cost of barrels, equipment and cans.

However, it’s not all doom and gloom for the Canadian wine industry. There have been increased sales of domestic wine due to the removal of American wines from liquor and wine store shelves in most provinces.

Statistics Canada announced that in April 2025, Canada imported only 2.9 million dollars of American wine  a 94% decrease from the year previous. Imports from other wine-producing regions such as New Zealand and Australia increased by 31% and 28% respectively, while shipments from France and Italy rose by 13.6% and 7.6% respectively.

Wineries in Southwestern Ontario, the B.C. Lower Mainland, and Kelowna have experienced increased sales. For example, despite total wholesale wine sales falling nearly 5% year-over-year, B.C.’s share climbed from 47% to over 52%. For the first time, B.C. wines represent more than half of all wholesale wine sales in that province.

However, as stated previously, I don’t believe there are any real winners in a trade war.

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The Effects of Tariffs on the U.S. Wine Industry

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With the introduction of tariffs this year by the U.S., American wine makers are now paying a higher price for all their wine making materials including French oak barrels, glass bottles, corks and even the wine-making equipment itself, such as pumps and de-stemmers. The 15% levy that was imposed on all goods entering the U.S. from the European Union means the cost of wine making supplies increased 15%. For example, each wine barrel now costs California wine makers an additional $100 to $150 US.

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California’s Paso Robles Wine Country Alliance said international wine orders were drying up as the aftereffects from President Trump’s trade war resonated around the world. U.S. winemakers are saying that this puts wine producers in high-cost California at an even greater disadvantage.

European wine producers are reducing their amount of American wine purchased. Danish wine stores are boycotting U.S. made wines. In Sweden, the state liquor store, Systembolaget, has seen sales of American wines drop 15%. Portugal as well has sought out alternatives to American wine.

Canada, who purchased 33% of all U.S. wine exports in 2024, has removed American wine and alcohol from liquor store shelves in most provinces. Robert P. Koch, president of California’s Wine Institute, said, “Canada is the single most important export market for U.S. wines, with retail sales in excess of $1.1 billion annually”. In April 2025, U.S. wine exports to Canada decreased 72.5% compared to April of last year. According to the American Association of Wine Economists (AAWE) exports declined by $25.5 million to $9.69 million.

It’s feared that these new anti-American sentiments are unravelling decades of marketing work and relationship building. Former consumers of American wine are now discovering interest in other New World wines, such as Australia, South Africa, South America and Canada.

Oregon is facing the same challenges as California. Oregon’s leading export targets are Mexico, China and Canada, representing about 81,000 jobs that are reliant on that export trade. Close to half of all Oregon wine exports in recent years have gone to Canada; in 2022, that was 73,323 cases of a total export of 162,939.

In April, the US Wine Trade Alliance stated that “restaurants will suffer, domestic producers will face new obstacles in bringing their wines to market, and retailers, importers, and distributors across the country will be placed at serious risk “.

I guess we will all have to wait and see what the longer-term effects of this trade war will be. However, I tend to agree with the economists who conquer that a trade war is a war that no one wins.

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Greek Food and Wine Pairings

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Greek food is very diverse but generally pairs well with crisp white wines such as Sauvignon Blanc or a Greek Assyrtiko, which is a very dry, high acid wine. Light-bodied red wines like Pinot Noir or Sangiovese, as well as sparkling wines like Prosecco also work well.

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For heartier dishes with lamb or beef, a hardy Greek red such as Xinomavro or Agiorgitiko will pair well.

As with any wine pairing, consider the dominant flavours of the dish. Pair light-bodied wines with lighter dishes and bolder wines with richer dishes. The wine’s acidity can complement the flavours of many Greek selections, especially those with lemon or tomato.

Here are some specific pairing suggestions from a variety of wine experts.

  • Avgolemono (Lemon Chicken soup): Medium-bodied white such as a Greek Moschofilero
  • Grilled chicken: Chardonnay or a Greek white Savatiano or Assyrtiko.
  • Chicken or pork Gyros: Riesling, Gewürztraminer or a light, chilled red Baco Noir or Greek Agiorgitiko.
  • Fish or seafood: Pinot Noir, Chardonnay, Riesling, Rosé or Assyrtiko.
  • Greek Salad: Sauvignon Blanc or an Orange wine.
  • Lamb or beef dishes: Syrah/Shiraz, Merlot, Cabernet Sauvignon, Agiorgitiko, or Xinomavro.
  • Lamb Gyros: A lighter, chilled red, such as Pinot Noir, Syrah or Agiorgitiko.
  • Mezze Platter (dips, pita, salads): Light red wines like Pinot Noir or Sangiovese, crisp whites like Sauvignon Blanc or an Orange wine.
  • Moussaka: A light-bodied red like Baco Noir or Agiorgitiko.
  • Pastitsio: Italian Nebbiolo or Greek Xinomavro.
  • Grilled octopus: Greek Assyrtiko.
  • Red sauce dishes: Cabernet Sauvignon or Merlot.
  • Saganaki: A citrusy white like Trebbiano.
  • Spanakopita: Pinot Grigio, Vermentino or Moschofilero.

As always, don’t be afraid to experiment with different pairings to find your favourites.

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Pairing Wine with Sandwiches

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Looking for a way to enhance a meal of sandwiches? For lighter tasting fillings, light-bodied white wine such as Pinot Gris, Pinot Grigio, or Sauvignon Blanc would pair well. For more substantial sandwiches, a Pinot Noir, Beaujolais, or even a Cabernet Franc can go well. Sandwiches that have a spicy kick will pair well with a Moscato or Riesling.

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Sandwiches served on a nutty bread loaf are complimented by a Cabernet Sauvignon while more savory breads are enhanced by a Chianti.

Here are some suggestions for some specific types of sandwiches:

  • BLT – Sauvignon Blanc, Pinot Grigio, Rosé
  • Cheesesteak – Carménère
  • Cubano – Chardonnay
  • Roast beef – Malbec, Syrah
  • Italian beef – Merlot
  • Grilled cheese – Chardonnay or semi-dry Riesling
  • Grilled chicken – Sauvignon Blanc
  • Ham and cheese – Chardonnay
  • Italian meat sandwich – Prosecco
  • Peanut butter & jam – Off-dry Riesling
  • Pulled pork – Pinot Noir, Cabernet Franc
  • Reuben – Pinot Noir, Rosé
  • Cured salami – Shiraz/Syrah
  • Tuna melt – Verdicchio
  • Classic turkey – Chardonnay
  • Turkey burgers – Pinot Noir
  • Grilled vegetables – Sauvignon Blanc

Whatever your choice of sandwich, the accompaniment of a glass of wine can enhance your dining experience.

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Pairing Wine with Thai Food

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Pairing wine, or any alcoholic beverage for that matter, with Thai food is without history or precedent. Whereas many cultures traditionally include alcoholic beverages as part of their cultural experience, for example the French with wine, the Japanese with sake, and the Germans with beer, Thais have no history of pairing alcohol with food at all.

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Therefore, when pairing wine with Thai food, there are no rules or traditions to be followed. However, there are general guidelines that can be followed when matching wine with any flavour, boldness, sweetness, spiciness, acidity, or heat combinations of food. I have written about these in one form or fashion numerous times over the years.

In case you don’t want to engage in your own research to find the perfect pairing for your next Thai dinner, here are some wine pairing suggestions from a variety of experts.

As a general comment, lighter-bodied wines, particularly whites and rosés, are good choices. Off-dry Riesling, Pinot Gris, Sauvignon Blanc, Grüner Veltliner and Chenin Blanc go well, along with some lighter red wines such as Pinot Noir or Gamay.

Some Thai dishes, particularly curries, can be quite spicy. A wine with a touch of sweetness can help balance the heat.  A Sauvignon Blanc, an off-dry Riesling or a Gewürztraminer would be a good choice. Also, a Riesling can complement the aromatic herbs and spices often used in Thai cooking.

If your preference is for red wine, the light body, low tannins and high acidity of Pinot Noir make it a good choice for Thai food. Gamay, being similar to Pinot Noir, also has a light body and is high in acidity making it a good choice as well.

A light-bodied French Beaujolais can pair well with heartier meat dishes or those with umami-rich sauces.

Wines to avoid include heavy, full-bodied red wines with high tannins, as they can intensify the spiciness of Thai dishes. Therefore, it is best to stay away from wines such as Cabernet Sauvignon and Shiraz.

Here are some more detailed suggestions:

  • Green Curry: Malbec
  • Larb: Grenache
  • Mango Sticky Rice: Sauternes
  • Massaman Curry: Gewürztraminer
  • Moo-ping: Grenache or Syrah
  • Pad Karprao: Red Burgundy, Cabernet Franc
  • Pad See Ew: Primitivo/Zinfandel
  • Pad Thai: Chenin Blanc
  • Som Tum: Moscato d’Asti
  • Tom Yum: Sauvignon Blanc

One thing is for certain, whichever wine you select to have with your Thai meal will not be wrong.

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Irish Whiskey or Scotch Whisky

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Don’t all types of whiskey pretty much taste the same, especially those ones that are made from the same type of grain? The simple answer is no. Just ask the Irish or the Scots. They will each tell you that theirs is far superior over all others. Irish whiskey and Scotch whisky have common roots but have developed differently over time.

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So, what are the differences between Irish whiskey and Scotch whisky? To begin, Irish whiskey is spelled with an “e” (whiskey), while Scotch whisky is spelled without an “e” (whisky). Whiskey labelled as Irish whiskey must be produced in Ireland and spend a minimum of three years maturing there while whisky labelled as Scotch whisky must be produced in Scotland and spend a minimum of three years maturing there.

Both are created using fermented grain and aged in wooden barrels. However, their distillation process, ingredients and flavour profiles differ. Irish whiskey is often triple-distilled whereas most Scotch whiskies are double-distilled. Thus, Irish whiskey is usually known for a smoother, lighter taste, often having fruitier flavours, while Scotch whisky is typically known for a fuller, heavier, more complex flavour profile with notes of oak, vanilla, fruit, spice and sometimes smokiness. However, as with most things there are exceptions. Occasionally Irish whiskey is only double-distilled and Scotch whisky is triple-distilled.

Irish whiskey may be made from a combination of cereal grains including barley, corn, wheat and rye. Scotch whisky is produced from 100% malted barley. The grain is distilled differently as well. Irish whiskey can mature in wood species other than oak, while Scotch whisky must be matured in oak barrels.

There are four types of Irish whiskey: Single Malt, Single Pot Still, Single Grain and Blended Irish Whiskey. For details on single malt and single pot, see my March 12, 2022 post “The Styles of Irish Whiskey”.

On the other hand, there are five types of Scotch whisky: Single Malt, Single Grain, Blended Malt, Blended Grain and Blended Scotch Whisky. Further information on the types of Scotch can be found in my post “Scotch Whisky Single Malt Vs Blend” dated December 18, 2021.

As you can see, both countries produce single malt, single grain and blends. In Scotland, blended malt and blended grain are separate categories whereas blended Irish Whiskey must be made from two or more different whiskey types.

The biggest difference between Irish whiskey and Scotch whisky is the single pot still classification. This is a style of whiskey that is unique to Ireland and is made from both malted and unmalted barley.

Scotch whisky sales exceed those of Irish whiskey. In 2023, Scotch exports were the equivalent of $10.3 billion CDN while Irish whiskey exports were just more than $1.6 billion CDN. There are currently about 150 whisky distilleries operating in Scotland and around 50 in Ireland.

However, being bigger doesn’t make it better. Scotch can boast more varieties and market exposure but it is up to you decide which one is better. It comes down to personal taste.

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The Sparkling Wine Market

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The demand for sparkling wine can be very volatile as it is heavily influenced by consumer moods and trends. Sparkling wine is traditionally related to festive gatherings and celebrations as long as people are congregating for happy times there will be a demand. However, during economic down times or in unusual circumstances like COVID-19, people are not gathering to celebrate and the sparkling wine market suffers.

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Like in so many segments of the wine industry, there is increasing demand for non-alcoholic sparkling wine options as the younger generations become more health-conscious and want to avoid alcohol. This trend is expanding market appeal. Vintners who embrace this new market by diversifying their product lines and expanding consumer reach will benefit.

Health-conscious consumers are looking for wines with reduced sugar content and fewer calories. This shift encourages innovation in product formulations, helping wine makers attract a broader consumer base. Low-calorie options provide a competitive edge in a health-driven market.

Given today’s ecological and environmental concerns, consumers are also placing much more emphasis on sustainability and organic certifications. Sparkling wine producers who are adopting eco-friendly practices are appealing to environmentally conscious buyers. This trend is providing producers with the ability to command higher prices & enhance brand loyalty.

The sparkling wine market, which has been steeped in tradition for centuries, is now being forced to change by evolving consumer demand. Producers need to respond and adapt to the evolving marketplace if they want to continue to survive.

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Dessert Wine Trends

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As the name suggests, dessert wine is a sweet wine that is intended to be served alongside dessert. These wines are often rich in flavour and have a high sugar content.

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There has been a growing demand for premium dessert wines aimed at satisfying consumer demand for high-quality and unique flavours. This has driven market growth by enticing wineries to improve and enhance their product offerings and release new artisanal options, which in turn command higher price points and increased revenue.

There is rising interest in low-alcohol dessert wines by health-conscious Millennials and the Gen Z population who desire lighter wines. These wines also appeal to a broad range of wellness seekers, thus enhancing market growth.

Again, health-conscious and ethically driven drinkers are creating demand for vegan and allergen-free wine alternatives. By excluding animal-derived fining agents, which are added to wine to alter its colour, flavour, texture, and clarity, new dessert wine markets become available. These agents include additives such as casein or gelatin.

There are generally five types of dessert wine. Thirty percent of the market is made up of fortified wines, consisting of Port, Sherry, Madeira and Marsala.

Late harvest wines are next, consisting of twenty-five percent of the dessert wine market. Included in this category are Late Harvest Riesling, Late Harvest Sémillon and Late Harvest Gewürztraminer.

Controlling twenty percent of the market is Ice Wine. Included are Eiswein and Ice Cider.

Botrytized Wines, also referred to as Noble Rot, consist of fifteen percent of the market. For an explanation of this type of wine, refer to my post, Dessert Wines from April 18, 2020. Wines in tis group include Sauternes and Tokaji Aszú.

The “Other” wine category make up the remaining ten percent of the dessert wine market. Included in this catch-all category is Recioto della Valpolicella, Vin Santo and Muscat / Moscato.

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In Response to Donald Trump

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During the past six years that I have been writing this blog I have always steered away from political issues. However, today I feel compelled to speak out against Canada’s one time ally, the United States. With the return of Donald Trump to the White House’s Oval Office, Canada’s economy was placed under direct attack by Trump when he decided to impose twenty-five percent tariffs on Canadian imports to the U.S., without just cause. Similar sanctions have been imposed on Mexico and China and are being threatened against the European Union.

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In response to these bullying tactics by Trump, and as a proud Canadian, I will no longer purchase or write about American wine until such time as Trump refrains from his attack on Canada.

Canada has been the top export market for U.S. wines and Ontario’s provincial liquor board (the LCBO) has been among the largest purchasers of U.S. alcohol. In Ontario, imported wines are primarily sold through provincially owned and operated retail outlets, although recent regulatory changes have authorized 157 private grocery retail locations to distribute wine and beer.

The first phase of Canada’s response to the U.S. imposed tariffs includes tariffs on wine and spirits, in addition to many other products. Ontario is banning American liquor and the LCBO is removing American wine, spirits and beer from its shelves. This will represent about a billion dollars worth of American alcohol.

British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia and Newfoundland are also removing U.S. liquor from their store shelves. At last word Quebec is considering the idea. On the bright side these bans will serve to enhance the sale of Canadian wines in Canada, as well as European, Australian, South American and South African wines.

Hopefully the American people will convince Trump that the imposition of his tariffs will not only hurt international economies but his own economy as well. It is a sad situation.

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The Canned Wine Market

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Since I first wrote an introduction to the canned wine market in a post from November 5, 2022, the market has continued to expand. Just as a reminder, canned wines are wines packaged in aluminum can, that provide convenience, portability and freshness. Cans offer a modern alternative to traditional glass bottles, catering to the needs of today’s fast-paced, on-the-go lifestyles of the Millennial and Gen Z consumer segments in particular.

Aluminum cans have enabled a surge in market share within the broader alcoholic beverage industry and has permitted expansion into new international markets and emerging regions. With cans being very adaptable for use at special events and outdoor activities, their popularity continues to grow.

This has all lead to growth in the premium and higher-priced canned wine sectors and encouraged investment from both major and niche wine producers. Strategic partnerships are driving industry growth resulting in innovative can designs to help improve consumer appeal and expand distribution channels into more diverse retail formats.

Wineries have been working to enhance their flavour profiles for canned wines by incorporating flavours such as fruit-infused, botanical and exotic blends. The trend toward moderation and portion control is driving the popularity of single-serve canned wines. Consumers realise the convenience, affordability and reduced environmental impact associated with single use cans.

Canned wines seem to be here to stay and are not just a passing fad.

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