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How U.S. Wineries Rescued Canada’s Wine Industry Following a Devastating Freeze

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Washington and British Columbia Winemakers Unite Amid Devastating Grape Losses

In a remarkable act of solidarity, wineries from Washington State came to the aid of their counterparts in British Columbia after an unprecedented freeze decimated the local grape harvest. The event, deemed a “catastrophic loss” by the British Columbia government, began on five moonless nights in January 2024, impacting the Okanagan Valley, which is responsible for a staggering 86% of the province’s wine production.

The harsh winter conditions led to a near-total loss of grapes—up to 90%—resulting in significant financial repercussions. The estimated financial toll on British Columbia’s grape growers and related industries is around $254.7 million, including losses incurred by winery workers and support services.

In stark contrast, Washington State’s wine producers found themselves with a surplus due to a bumper crop and a significant reduction in grape purchases by Ste Michelle Wine Estates, the state’s largest wine manufacturer. “2023 was huge in Washington. Our growing conditions are wonderful here,” remarked Colleen Frei, the executive director of the Washington Winegrowers Association.

Recognizing the pronounced need for aid, the Association compiled an eight-page guide to navigate the complex regulations surrounding cross-border grape shipments, facilitating the movement of grapes from Washington to British Columbia.

Frei highlighted the urgency of supporting fellow vintners, emphasizing that Washingtonians were committed to offering their grapes at competitive prices, despite the exchange rate disadvantage posed by the weaker Canadian dollar. According to Craig Pacheco, a consultant linked to the wine industries in both regions, at least 25% of wineries in the Okanagan actively connected with U.S. growers for help.

While Washington vineyards met most of the supply needs, some premium varieties from Oregon’s Willamette Valley, particularly Pinot Noir, found their way to British Columbia’s upscale wineries, further enhancing the collaborative effort.

Despite the robust outreach from U.S. growers, Canadian regulations delayed the approval for winemakers to utilize out-of-province grapes without incurring tax penalties. Nevertheless, many went ahead with arrangements. Ron Kubek from Lightning Rock Winery recounted the overwhelming support from Washington growers, noting the establishment of a grape “dating service” to facilitate connections—a move he felt was lacking from the Canadian side of the border. “By July 25, a lot of people had already secured their fruit contracts,” he said, expressing frustration over governmental delays.

Pacheco remarked on the existential threat this freeze poses to the British Columbia wine industry, especially considering the extensive replanting necessary after such a large-scale loss of vines. “Wine is not a commodity that you can just turn on next year,” he pointed out. The financial burden of replanting an acre hovers around $50,000 Canadian, with a multi-year timeline required before new vines can yield a viable harvest.

Some wineries in British Columbia have already begun to close their doors, with reports indicating that about 25% of regional wineries are currently for sale as the industry grapples with the fallout. Philip Fox, a local real estate agent, noted that while some wineries are formally listed for sale, many more are quietly available, indicating a trend toward consolidation within the industry.

The impending difficulties extend beyond vineyard losses; they have also been compounded by declines in tourism linked to seasonal wildfires, further straining the region. “The government last year told people not to come here, which ruined our August, September, October period,” noted Christine Coletta, owner of Haywire Winery. Despite these challenges, she emphasized the ongoing support from Washington growers, who have offered high-quality grapes at competitive prices during this crisis.

The collaboration between winemakers transcends geographical boundaries, as evidenced by Kubek’s experience sourcing grapes from Washington vineyards, including a hearty supply from Andrews Family Vineyards. Jeff Andrews expressed his commitment to helping Canadian winemakers navigate this challenging period, reaffirming the bond that exists between the two regions’ wine industries.

As the vintage year turns, the British Columbia wineries’ struggles are only just beginning to unfold, with the lasting impact of the freezes becoming evident in 2025. Despite the overwhelming hardships, the resilience of both British Columbia and Washington wineries underscores a spirit of cooperation and mutual support, essential in navigating the future of the region’s wine industry.

Source
www.foodandwine.com

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