Should the LCBO be Privatized?

April 19, 2025 / A Layman's Wine Musings / 1 Comment

In Ontario, where I live, there is an age-old debate as to whether wine and liquor sales should be government controlled and sold only in the Liquor Control Board of Ontario outlets (LCBO) or allowed to be sold by private enterprise. During recent years, government control has been loosened somewhat, enabling wine, beer and coolers to be sold in grocery stores and more recently in convenience stores.

The LCBO’s history dates back to 1927 and the end of prohibition in Ontario. In 1927 the LCBO was basis of three central beliefs:

The best way to prevent social harm and health risks related to alcohol consumption was to make purchasing alcohol awkward or inconvenient.
Adults could not be trusted to make their own decisions around responsible alcohol consumption.
Private sector retailers did not have the capacity to balance market competition and social responsibility.

Attitudes are very different today and it can be argued that the LCBO would not have been necessary nor created if current circumstances had applied in the 1920s. In today’s world, the private sector manages business enterprises for profit and the government regulates their behaviour through the establishment of standards and the use of enforcement to ensure those standards are met.

There have been several studies over the years on what reforms, if any, should be made to the LCBO. It has been argued that the government could generate more revenue by privatizing the LCBO’s retail stores while keeping their wholesale business in place.

This is what Alberta did back in 1993 when it introduced a privatization scheme. The system initiated more selection, arguably reduced prices and enhanced convenience for the consumer. It provided better opportunities for small business and alleviated the government from direct business operations.

Despite Alberta’s experience, Ontario has not had the enthusiasm for such a venture. A study published in 2019 suggested that the people of Ontario did not want privatization as they felt the LCBO provided great value-add to the community as their surpluses fund other provincial initiatives. Reform is more likely to take place in the distribution process via an expansion in the type and number of retail outlets allowed to sell wine and in the pricing of wine.

The LCBO has a dual social responsibility mandate. It is responsible for generating revenue for the benefit of the Ontario government, as well as a social responsibility to put in place a system of minimum selling prices to discourage excessive alcohol consumption. This has been criticized as being a legally sanctioned price fixing mechanism to guarantee profits and discourage price competition.

It’s interesting to note that each province sets its own rules and regulations regarding the sale of wine and liquor. This is illustrated by the table below which indicates when each province implemented and repealed prohibition in Canada.

Province/territory Prohibition enacted Repealed

British Columbia 1917 1921

Alberta 1916 1923

Saskatchewan 1915 1925

Manitoba 1916 1921

Ontario 1916 1927

Quebec 1919 1919

New Brunswick 1856 1856

1917 1927

Northwest Territories 1874 1891

Nova Scotia 1921 1930

Prince Edward Island 1901 1948

Yukon 1918 1920

Newfoundland 1917 1924

Perhaps standardization of liquor sales should be considered across the country. That could be a discussion for another day.

Sláinte mhaith

The Sparkling Wine Market

April 12, 2025April 12, 2025 / A Layman's Wine Musings / Leave a comment

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.

Photo credit: *marketresearchintellect.com*

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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April is Wine Month in British Columbia

April 5, 2025 / A Layman's Wine Musings / 1 Comment

For the eighth year, the British Columbia government has declared April as Wine Month in recognition of the vital role that the B.C. wine industry plays in the province’s economy, tourism and culture. Given the effects of the current economic uncertainty combined with the devastating environmental impacts of the past couple of years, this recognition is very timely.

B.C. Wine Month is intended to be a celebration of everything related to B.C. wine, including new 2024 vintage releases, including B.C. VQA wines, which consist of wines that are 100% produced in B.C., and for a limited time because of the 2024 environmental situation, Crafted in BC wines produced under the 2024 vintage relief and support program. See my post from November 9, 2024, “2024: A Year to Remember” for details regarding the events of 2024.

Wine Month is intended to recognize the people working in the wine and hospitality sectors who create memorable experiences for visitors from around the world that come to enjoy the wines and flavours of the region. This supports grape growers, winemakers and winery operations, increasing the market exposure to their excellent wines.

According to Wines BC (winesbc.com), there are 929 vineyards in British Columbia along with 369 licensed wineries. The B.C. wine industry generates about 3.75 billion dollars annually, contributes over 440 million dollars in federal and provincial tax revenues, and employs over 14,000 full-time workers. An estimated one million tourists are drawn to the region each year resulting in 452 million dollars in tourism-related revenue, along with 147 million dollars in tourism-related wages from over 2,600 associated jobs. This all boils down to 105 dollars being generated for the economy from every bottle of wine sold.

B.C.’s Wine Month is something worth celebrating.

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Redbreast 12 Irish Whiskey

March 22, 2025March 28, 2025 / A Layman's Wine Musings / Leave a comment

While visiting the Jameson Bow Street Distillery in Dublin, Ireland over a decade ago, I was told that the difference between Jameson whiskey and Redbreast whiskey was that Redbreast was distilled in the traditional way whereas Jameson was made in a more contemporary style. Being a novice at the time, I favoured the less complex flavour of the Jameson’s. It took me several years before I gained a full appreciation for single pot whiskey, which is now my Irish whiskey of choice.

The history of Redbreast goes back to the late 1800s in London, England, where a company by the name of W & A Gilbey began selling wines and distilling spirits. By 1875 they were distilling nearly a million bottles of whiskey a year. After experimenting with many whiskey types and labels, in 1912 the company released the first batch of Redbreast 12.

The political and economic turmoil of the 1980s resulted in a stoppage in production. The whiskey was reintroduced in 1991 by The Midleton Distillery that has been making single pot still Irish whiskey in County Cork, Ireland for over 200 years.

Redbreast is now distilled in top quality sherry and bourbon casks that contribute to the complex flavour of this pot still whiskey. With notes of spice, it has a grainy quality and depth that doesn’t exist in a single malt.

A lot goes into making Redbreast a great whiskey. The mash bill is made of a mix of malted and unmalted barley that is locally grown. The unmalted barley creates a unique creamy mouthfeel and spiciness. Water is sourced directly from the Dungourney River, part of which runs through a system of cooling underground caves. The whiskey is distilled in a copper pot still before being matured in a combination of bourbon seasoned American Oak barrels and Oloroso Sherry seasoned Spanish oak casks.

Being the most modestly priced of the Redbreast line, at $96 CDN, Redbreast 12 has great appeal. This is one of the best buys amongst Irish whiskies.

Its colour is clear gold and has the aroma of dried orange peel and toasted nutmeg. It is complex, fruity and spicy, with a hint of toasted wood notes. It finishes with notes of pepper and grass, with a lingering warmth.

After originally trying Redbreast in my “youth” of whiskey drinking years, and not truly appreciating what it truly had to offer, I have since revisited it and gained a new appreciation of this Irish standard.

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Dessert Wine Trends

March 22, 2025 / A Layman's Wine Musings / Leave a comment

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.

*Photo credit: varuninamdar.wordpress.com*

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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Portugal’s Douro Valley Wine Region

March 15, 2025 / A Layman's Wine Musings / Leave a comment

The Douro Valley is the oldest established wine region in the world, dating back to 1756. It was first renown for its Port production. However, from a tourism perspective, it has only been popular for the past couple of decades, after being declared as a UNESCO World Heritage site in 2001.

The Douro Valley region is no longer just know for its Port, but also for an increasing number of dry red wines often made from the same native grape varieties. A much smaller number of quality white wines are also now produced.

The viticultural zone covers the steep slopes along the banks of the lower ranges of the Douro River. The river flows from northern Spain, where it is called the Duero. The river finally reaches the Atlantic Ocean at Oporto. The vineyards stretch up the steep, dry slopes on either side of the river.

There are three subregions in the Douro, each covering its own section of the river. Of these, the Douro Superior region is the furthest inland. It is covered in terraced vineyards and takes up about 20 percent of available vineyard land in Douro.

The central part of the Douro region, centered around the village of Pinhão, is the Cima Corgo region. It is where most of the prestigious Vintage Port originates from.

Cima Corgo is the largest subregion, accounting for almost half of the valley’s total wine production. The vineyards are steep with the vines nearer the river generally ripening much earlier than those at higher elevations. For this reason, the harvest is often completed in multiple sweeps of the same vineyard.

Nearest Oporto and the coast is the Baixo Corgo subregion. This area is best suited to produce table wines. The area is cooler and wetter than the other regions and more accessible, easily enabling bulk-wine operations to function.

Both the Douro’s still and fortified wines can be made from more than 80 different grape varieties. However, the vineyards are dominated by five key varieties: Touriga Nacional, Touriga Franca, Tinta Barroca, Tinto Cao and Tinta Roriz (Tempranillo). Of these, aromatic Touriga Nacional is the most highly regarded, but Touriga Franca is the most planted.

As recently as twenty years ago, Portugal produced very little quality still wine. However, since then it has become world renowned not only for Port but also for its DOC Douro still wines

There are several international varieties of grapes grown in the Douro valley, particularly to produce table wines. The most common of these are Cabernet Sauvignon, Sauvignon Blanc and Gewürztraminer.

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In Response to Donald Trump

March 8, 2025 / A Layman's Wine Musings / 3 Comments

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.

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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Ardbeg Whisky

March 1, 2025 / A Layman's Wine Musings / Leave a comment

On the small remote Hebridean island of Islay (pronounced ‘eye-lah’), that lies off the western Scottish mainland, is where you will find the 200 year old Ardbeg distillery. The abundance of soft water, fertile soil and acres of precious peat makes Islay a place of pilgrimage for the single malt whisky faithful. I must admit that I have visited the island on two separate occasions and would love to return.

Ardbeg claims to produce the most peated of all the Islay malts and having tried it I would not disagree. It achieves this by using the most phenolic malt in the industry. Phenols are a class of organic compounds that contribute to the aroma and taste of whisky. They are often associated with smokiness and medicinal notes commonly found in peated whiskies. Ardbeg’s malt is peated to a level of 50 ppm (parts per million).

The casks used to mature the whisky come from a variety of sources. The vast amount of whisky matures in ex-Bourbon oak barrels. However, there is ongoing experimentation with different types of oak casks.

During the maturation process only 1st and 2nd fill casks are used. All of the new first fill Bourbon casks come from suppliers in the United States. Other casks come from Speyside Cooperage, and Craigellachie in Scotland.

As with many of the Islay distilleries, Ardbeg is situated next to the ocean. As a result, the whisky receives a certain salty, iodine character while it matures.

Here are the stats on Ardbeg’s three main whiskies:

Ardbeg 10 Year Old

Alcohol by Volume (ABV) = 46%
Appearance = Light Gold
Details = Revered for its balanced smoke and fruit character. Shows aromas of lemon, smoke, peat and brine with a kiss of sweet cereal. On the palate, it is warm and smoky with bold, yet balanced flavours that resonate with the aromas. The finish is long, sweet and smoky. Serve neat or with a few drops of pure water.
Price = $120 CDN

Ardbeg Uigeadail

ABV = 54.25
Colour = Deep gold
Details = With special vatting, this Ardbeg combines deep traditional smoky notes with sweet, raisiny tones of old, ex-Sherry casks. Rich and weighty with aromas of warm Christmas cake, fresh ocean spice, cedar and pine. Sweet and spicy with deep, smoky flavours, lingering raisins and smoke on the lengthy well-integrated finish.
Price = $190 CDN

Ardbeg Corryvreckan

ABV = 46.2%
Colour = Light gold
Details = Expect an intense nose of cedar, brine, and creosote, with caramel, smoky bacon, vanilla and clove; very complex aromas. The palate is also intense, but it is round and finely balanced with outstanding length. The lingering finish shows smoky, black tarry coffee with chocolate. Not for the fainthearted.
Price = $238 CDN

If you have a liking for peaty Scotch Whisky, and you haven’t done so already, you should try one or more of Ardbeg’s offerings.

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The Canned Wine Market

February 22, 2025 / A Layman's Wine Musings / Leave a comment

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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Inter-Provincial Wine Sales

February 15, 2025 / A Layman's Wine Musings / Leave a comment

Given all of the recent tariff talk and the renewed patriotism that has come as a result of it, some interesting points have come to light regarding wine sales between provinces. Many Canadians are now avoiding U.S. made products, including wine. As a result, there are now signs of an increased need to support Canadian wineries and renewed calls to open inter-provincial trade in alcohol. However, there are inter-provincial trade barriers standing in the way.

Until June 2019, federal legislation prohibited inter-provincial shipment of alcohol directly to the consumer. This then allowed the provinces the opportunity to pass legislation to permit direct purchase to consumers. Unfortunately, most provinces chose not to allow this, leaving only British Columbia, Manitoba, Nova Scotia and Saskatchewan who permit direct-to-consumer alcohol shipments. Ontario has recently amended its laws to prohibit the possession of wine that has been imported from other provinces unless the transaction was handled via the Liquor Control Board of Ontario (LCBO). There are now calls to have this ban lifted.

Ontario wine consumers cannot support small local wineries in another province. Ironically, living in Ontario and purchasing wines produced in another province, the LCBO charges the purchaser the same import duties as if the wine came from a foreign country.

The wine growers of B.C., as well as the B.C. government are advocates of opening provincial borders to enable wine to move east and west across this country. There is a great deal of regulatory burden making it difficult for small and medium-sized wineries. The process needs to be simple and streamlined.

The time has come for Canadian provinces to eliminate inter-provincial trade barriers.

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