Canadian Grapes To Wine 2018 • Spring Issue

Canadian

GRAPES to

WINE Spring 2018

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TONING DOWN TOSI

WORLD WINE SHORTAGES

VIWF ANNOUNCES 2018 TRADE COMPETITION WINNERS

CANADIANS CELEBRATE AGRICULTURE DAY

2018’S ALL CANADIAN WINE CHAMPIONSHIPS ARE COMING! PM # 41262017

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Canadian Grapes to Wine • SPRING 2018

Geoff McIntyre CPA, CA MNP Kelowna

TONING DOWN T.O.S.I.

THE FEDERAL GOVERNMENT PUTS DOWN THE SHOTGUN IN FAVOUR OF A MORE TARGETED ATTACK ON INCOME SPRINKLING

ness in excess of a “reasonable” return on labour and capital would be taxed at the top marginal rate. This is called “Tax on Split Income,” or TOSI.

As the food & ag processing niche leader for the Okanagan Region, Geoff specializes in serving the British The Revised Proposal Columbia wine industry; working with The revised proposal alleviates several winery and vineyard clients to some of these concerns. The governhelp them achieve their goals. ment has kept the reasonableness tests, but narrowed the scope by adding safe harbours, where TOSI would not apply: 1. Where a business owner is age 65 or older and splits In the last issue of Canadian Grapes to Wine, we introincome with a spouse (aligning the rules with the existing duced you to the changes being proposed by the federal pension income splitting rules). government for the taxation of private corporations and their 2.

If a capital gain qualifies for the Capital Gains Deducowners (see Sweeping Changes coming to tax planning for private tion (Qualified Small Business Corporation Shares or Qualicorporations – Fall 2017). We also warned of the possibility of fied Farm Property). significant collateral damage from the broad and vague new 3. In the case of shares inherited from a deceased by will, rules put forward by the government back in July 2017. if income or gain on the shares would not be TOSI to the Some good news! Thanks in no small part to the widedecedent. spread public backlash over the initial proposals, significant changes and clarifications to the initial plans were announced in December. Numerous stakeholder groups provided feedback and submissions about the possible unintended consequences of the proposed changes and the effect they would have on private business owners. And the government seems to have listened…sort of.

How Income Splitting Works Canada’s tax system is primarily based on the income of the individual, not of the family, and tax rates are steeply graduated with income. Consequently, a family with one income earner receiving $100,000 will pay more tax than a family where two spouses each earn $50,000.

Income splitting is considered common practice for incorporated small businesses, including farmers and winery owners. Family members subscribe for shares in a corporation, sometimes using a trust. The corporation pays dividends to family members, “splitting” the income and reducing the overall tax. There are often business and succession advantages in such a plan as well.

The current federal Government doesn’t like the idea that a private corporation can be used to effectively reduce the tax burden that would exist if the income was earned directly by an unincorporated business owner. The problem is that such structuring has been allowed under existing legislation for years and has become firmly entrenched in Canadian tax planning. This is not complicated, exotic planning for extremely wealthy individuals – it’s Basic Tax Planning 101 for anyone who owns a family business.

The Government’s Original Proposal The original announcement outlined a significant expansion of the application of existing rules for Tax on Split Income (TOSI). Essentially, the government proposed to evaluate the contribution of each family member to a business’ results. Any dividends or capital gains realized from that busi-

Canadian

GRAPES

to

WINE

Excluded Business There will be two exemptions from the labour reasonability test. The individual will be exempt from TOSI if the individual: 1. Works more than 20 hours per week in the current year (pro-rated in case the business operates for only a portion of a year), or 2. Has previously met the above test for at least five years.

This can be any five years; they need not be continuous or recent. If this test is met, then income can be split for a lifetime.

This is good news for many family-owned businesses, but it raises some additional questions. For instance, what sort of evidence will be required to prove the 20 hours per week threshold? Many family members have worked actively in a family business over the years without compensation or any of the record keeping that goes with it.

Excluded Shares The individual will be exempt from TOSI if the individual: 1. Is at least 25 years old by the end of the year, and 2. Owns 10 percent of the business (by votes and value), and the corporation meets the following conditions: 3. It earns less than 90 percent of its income from the provision of services, and 4. It is not a professional corporation.

Other Changes to the July 2017 Proposals In order to simplify the application of the TOSI rules, as well as to address potential unintended consequences associated with the July 2017 proposals, the federal government has proposed the following changes: • TOSI will not apply to compound income or income derived from property acquired as a result of a marital breakdown.

• Aunts, uncles, nieces and nephews will not be considered “related individuals” for purposes of the TOSI rules.

• Confirmation that the broad rules countering conversion of regular income to capital gains have been abandoned.

• Under the original proposal, individuals aged 18-24 were permitted to only earn the prescribed rate of return on capital contributions before TOSI applied. They will now be entitled to earn a reasonable return, but only on contributions sourced from an unrelated business.

By the time your read this, the federal government will have tabled its 2018 Federal Budget which is expected to provide greater detail on these new TOSI rules, which will be effective starting in 2018. The December revisions to the original proposals are a step in the right direction, particularly for the hundreds of small private businesses that make up the majority of Canada’s winery owners. However, there are still many situations where private business owners can expect to be paying significantly higher taxes as the Government moves to curtail income sprinkling.

Based in Kelowna, Geoff McIntyre is the Food & Ag Processing Services Leader for the Okanagan Region. Geoff specializes in serving the British Columbia wine industry; working with several winery and vineyard clients to help them achieve their goals.

He can be reached at 1.877.766.9735 or geoff.mcintyre@mnp.ca

Everything Counts When It Comes to Taxes, Even the Smallest Changes Can Make a Big Difference.

Contact Geoff McIntyre, Regional Leader Okanagan Food and Beverage Processing, 1.877.766.9735 or geoff.mcintyre@mnp.ca

Published Quarterly: March, June, September and December 2495 Enterprise Way, Kelowna, BC V1X 6X2 | 250-763-3212 editor@cdngrapes2wine.com www.cdngrapes2wine.com

Publisher: Black Press | Managing Editor: Karen Hill | Circulation Manager: _______ Advertising Director: Karen Hill | Ad & Publication Design: Corina Messerschmidt Canadian Grapes to Wine articles, columns, pictures and illustrations are copyrighted and may not be reproduced in any other publication without the expressed written consent of the Publisher. Although every effort has been made to verify the accuracy of information received and printed in Canadian Grapes to Wine, we cannot be held responsible for errors or omissions, E&OE.

Canadian Grapes to Wine • SPRING 2018

Again, this appears to be a favorable change, but we need clarification. For example, would a company providing vineyard consulting and labour to multiple vineyard owners be caught under these “provision of services” rules?

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WINE SHORTAGE ALTHOUGH GLOBAL WINE PRODUCTION

CCOVI - Brock University

fluctuations experienced across Europe, such as frost and drought, are to blame for injury to the regions’ grapevines.

HAS PLUMMETED TO HISTORICALLY LOW “It’s not good news and it’s got a lot to do with our changing climate and extremes in weather,” he said. “What’s happening is we’re having weeks and weeks of increased risk, which we wouldn’t have seen LEVELS THIS YEAR, A BROCK UNIVERSITY fifty years ago.”

He explained that warmer winter temperatures are causing bud RESEARCHER SAYS CANADA IS break earlier in the season, leaving the vine’s shoots more susceptible to frost damage come springtime.

WELL-POISED TO FAVOURABLY “It’s these really big extremes and sharp drops in temperature that WEATHER THE STORM. resulted in a lot of injury to the grapevines,” he said.

The OIV’s report doesn’t mention Canada’s 2017 wine production The Paris-based International Organisation of Vine and Wine (OIV) levels, but Willwerth, who monitors the grape harvest in Niagara, reported that unfavourable climate conditions in Europe’s main said “the size and health of this year’s crop looks very good.” winemaking regions of Italy, France and Spain will drive a global Work being done by researchers at CCOVI is also helping Ontario’s wine production shortfall of 8.2 per cent this year. grape growers to better mitigate the effects of climate change and It is the lowest level seen since 1961. protect their harvests in the face of extreme weather events, he Jim Willwerth, senior viticulturist at Brock’s Cool Climate Oeadded. nology and Viticulture Institute (CCOVI), said extreme weather “In Canada, we deal with extremes and I think we’re more prepared in terms of having some technologies available and research and outreach to help support our industry.”

One example is using wind machines in the vineyard to drive warmer air down to ground level when extreme weather, such as unexpected frost, hits.

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VineAlert, which advises growers in the region of immediate cold weather threats to grapevines so growers know when to turn their wind machines on to protect their crop.

The OIV reported an increase in wine production for the United States, as well, but stresses that the data was compiled before the wildfires broke out across the country earlier this fall.

“I have heard, with the wildfires, that California wines in Napa are supposed to be going up in price,” Willwerth said.

He also said cost increases of wines from the other effected regions might not be felt right away.

“The thing is with wine is a lot of it is in the cellar still, so we might see downstream effects of this in years to come,” he explained. “If a region sustains damage and loss year after year, we definitely will see it in our pocket books. I don’t know exactly what those impacts will be, but you can assume there will be some.”

Jim Willwerth, senior viticulturist at Brock’s Cool Climate Oenology and Viticulture Institute (CCOVI),

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Canadian Grapes to Wine • SPRING 2018

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29 Canadian Wineries Exhibit at International Trade Fair in Düsseldorf, Germany Amongst the pavilions in the overseas section of ProWein 2018, there will be a special spotlight on Canadian wines, as 29 of the country’s producers come together to show some of Canada’s undiscovered gems. Wineries from 3 Canadian provinces will be represented, offering tastings of diverse wine styles and varietals, from British Columbia, Ontario and Nova Scotia.

Over 100 wines from these 29 producers will be on display on the trade floor, from Sunday, March 18 through Tuesday, March 20. From BC’s fruit-driven and structured wines to Ontario’s limestone-driven wines exhibiting characteristic minerality and Nova Scotia’s signature aromatic whites and cooler-climate sparklings, the Wines of Canada pavilion (Hall 9, Stand D48) should be a definite stop on your list.

Renowned wine journalist Jamie Goode expressed his admiration for Canadian producers, saying, “Canada’s wine scene continues to thrill and excite me. As a journalist and a regular visitor to Canada’s wine country, I keep on finding new surprises. This is what keeps me coming back: superb wines made by dedicated and creative wine growers, often working in challenging climatic conditions where, if they get it right, it’s possible to make something worth all the effort.”

Magdalena Kaiser, Director of Public Relations at the Wine Marketing Association of Ontario, one of the organizers of the Canadian pavilion at ProWein, said, “Ontario’s wine growing region is proud to be a strong part of Canada’s national wine story at this year’s ProWein. Ontario wineries are excited to showcase signature examples of our cool-climate wines including Chardonnay, Riesling, Pinot Noir, Cabernet Franc, Sparkling and Icewine.”

Complementing Ontario’s wine varietals on show include exciting Traditional Method Sparklings from Nova Scotia, and well-structured Merlots and Syrahs from British Columbia. Laura Kittmer, Media Relations Manager of the British Columbia Wine Institute, added, “This important wine fair is an excellent opportunity for our industry to build on the international recognition that we are 6

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receiving for the quality of our wine and diversity of our terroir.”

Wines of Canada will host a masterclass showcasing Canada’s sparkling and white wines, led by Canadian wine journalists, John Szabo, Master Sommelier Treve Ring, wine writer and sommelier, and expert wine educator Janet Dorozynski. Riesling, Chardonnay and cool climate sparklings will be showcased at the educational session on Monday, March 19, 2018 at 2pm (Hall 10, F234).

In addition to the masterclasses being put on by Wines of Canada, Dr. Jamie Goode (wineanorak.com) will be presenting educational interactive tastings on Canadian wines each day of the trade show (sign-up via https:// winesofcanada- prowein.eventbrite. ca). Goode will take participants on a mini-tour and tasting of several varieties, including Riesling, Chardonnay, Pinot Noir and Cabernet Franc. ist of Participating Canadian L wineries: British Columbia 50th Parallel Estate Winery Bench 1775 Winery Gold Hill Winery Jackson-Triggs Mission Hill Family Estate Okanagan Crush Pad Painted Rock Estate Winery Poplar Grove Winery Quails’ Gate Winery Wild Goose Vineyards Ontario Burnt Ship Bay Estate Winery Colio Estate Wines Flat Rock Cellars Henry of Pelham Family Estate Winery Hidden Bench Estate Winery Inniskillin Lakeview Cellars Pelee Island Winery Pillitteri Estates Winery PondView Estate Winery Stratus Vineyards Sue-Ann Staff Estate Winery Vineland Estates Winery Nova Scotia Benjamin Bridge Blomidon Estate Winery Devonian Coast Wineries Domaine de Grand Pré

Lightfoot & Wolfville Vineyards Luckett Vineyards About Wines of Canada Canada’s wine growing regions are situated within the recognized growing zones of 30 and 50 degrees latitude north, which is shared by many other cool climate wine regions in Europe.

Although small in scale by world standards, wine is a growing business in Canada, with wineries sprouting up wherever soil and climate permit the productive growing of vines. Together,

Canada’s wine growing regions For Immediate Release are comprised of 30,000 acres and 671 wineries.

OTTAWA, ON (March 2 Wines of Canada is a collaborative of ProWein 2018, there w initiative of the Canadian Vintners the country’s producers Association and regional gems.wine Wineries from 3 C associations – British Columbia Winestyles an of diverse wine Scotia. Association of Institute, Wine Marketing Ontario and the Winery Association of Overthe 100 winesbest from the Nova Scotia – to bring country’s from Sunday, March 18 wines to the world. structured wines to Onta www.winesofcanada.ca

minerality and Nova Sco sparklings, the Wines of stop on your list.

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It can be centrally mounted Magdalena Kaiser, Direc or offset easily, though Association of Ontario, o hydraulics are optional.

ProWein, said, “Ontario’ Available in widths of 125 Canada’s national wine s cm up to 225 cm. to showcase signature e Chardonnay, Riesling, P IDEAL ALSAZIA PERFECT A new concept sprayer with dual counter rotation propellers providing inverted suction. TheOntario’ Complementing large amount of airflow produced allows easy penetration the from Methodbetween Sparklings from Columbia.

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CELEBRATING EXCELLENCE: VIWF ANNOUNCES 2018 TRADE COMPETITION WINNERS Spirited Industry Professional, Sommelier of the Year, Wine Program Excellence Awards, Vancouver, BC (March 2, 2018)

on competition organized by the BC Chapter of the Canadian Association of Professional Sommeliers. As Sommelier of the Year, Shane receives Delta Air Lines vouchers valued at $2,000 USD from the festival.

The Vancouver International Wine Sean grew up in Greater Vancouver Festival announced the 2018 trade and entered the hospitality industry at competition winners on Friday at age 16 with a job at The Keg Steakhouse Celebrating Excellence: 15th Annual & Bar. After being bitten by the Awards Lunch Featuring Wines wine bug, he completed his WSET from Spain & Portugal, presented by Intermediate and Advanced certification ContainerWorld. The Celebrating with Distinction. In 2013, he became Excellence program is part of the threeday Trade Days Conference; the program a sommelier at Vij’s restaurant and began pursuing the Master Sommelier honours those professionals who Diploma. He completed the Introductory contribute to this region’s exceptional wine and food culture. Guests enjoyed a Sommelier Certification with 100% on meal prepared by Vancouver Convention the examination and became Western Centre executive chef Mark Massicotte, Canada’s youngest Advanced Sommelier exquisitely matched with a selection of 40 in 2016. He plans to sit the Master Sommelier Examination in 2019. wines from Portugal and Spain.

2018 SPIRITED INDUSTRY PROFESSIONAL AWARD The annual Spirited Industry Professional Award is presented to an individual who has made a significant contribution to the sales, service or promotion of wine in British Columbia.

The 13th annual award goes to Barbara Philip MW. Barbara was the first Western Canadian to achieve the Master of Wine designation and is the only woman in Canada with this distinction. For close to 10 years she has managed the European Portfolio at BC Liquor Stores. Through Barbariain Wine Consulting, Barbara has been an international presenter, educator, journalist and judge. Since 2008, she has been the wine columnist on CBC Radio’s On the Coast. She has been for many years a judge for Decanter World Wines Awards, the largest wine competition in the world and also been Vice President of the Canadian Association of Professional Sommeliers, BC Chapter.

2 018 SOMMELIER OF THE YEAR The Sommelier of the Year Award recognizes working sommeliers who consistently demonstrate an outstanding passion for marrying wine with food and a dedication to exceptional service. This year’s winner, Sean Nelson, sommelier at Vij’s, was selected through a hands-

2018 WINE PROGRAM EXCELLENCE AWARD WINNERS Celebrating the best food and wine pairings in the business, restaurants throughout British Columbia and Alberta have been recognized for creating wine lists that complement their establishment’s unique menu and concept. Candidates submitted their wine and menu lists, and were then visited by judges who reviewed their programs. The key judges were Tom Doughty, Jay Jones, DJ Kearney, Iain Philip, and Jason Yamasaki. The top restaurants were awarded Platinum, Gold, Silver, and Bronze, or commended with an Honourable Mention. The Wine Program Excellence Awards are sponsored by Vancouver Magazine.

METRO VANCOUVER PLATINUM L’Abattoir Blue Water Cafe + Raw Bar Burdock & Co. CinCin Ristorante + Bar Hawksworth Restaurant Vij’s GOLD AnnaLena Chambar Mak N Ming – Best New Entry

Canadian Grapes to Wine • SPRING 2018

Mission Mott32 Nightingale

rovence Marinaside/The Wine Bar P Savio Volpe Tap Restaurant Yuwa Japanese Cuisine SILVER Ancora Waterfront Dining and Patio Boulevard Kitchen & Oyster Bar Fable Kitchen Forage Joe Fortes Seafood & Chop House PiDGiN The Stable House Bistro Wildebeest BRONZE Le Crocodile Homer St. Cafe and Bar Tableau Bar Bistro Tramonto at River Rock Casino Resort Tuc Craft Kitchen West Restaurant HONOURABLE MENTION Feast The Mackenzie Room Yew Seafood + Bar

WHISTLER GOLD Araxi Restaurant + Oyster Bar SILVER Alta Bistro BRONZE Basalt Wine + Salumeria

VANCOUVER ISLAND GOLD Agrius Restaurant (Victoria) Silver Nourish Kitchen & Café (Victoria) OLO Restaurant (Victoria) HONOURABLE MENTION 10 Acres Kitchen (Victoria) Artisan Bistro (Victoria) Ocean7 AQUA Bistro at Kingfisher Resort (Courtenay) Pacific Prime Restaurant & Lounge, The Beach Club Resort (Parksville) Unsworth Restaurant (Mill Bay)

BC INTERIOR GOLD Emerald Lake Lodge (Field)

ALBERTA

PLATINUM Cilantro (Calgary) GOLD The Lake House (Calgary) Vin Room Mission (Calgary) Vin Room YYC Airport (Calgary) SILVER Buffalo Mountain Lodge (Banff) Deer Lodge (Lake Louise) Rouge (Calgary) Vin Room West (Calgary)

or more information, go to F VanWineFest.ca Facebook & Instagram: /VanWineFest Twitter: follow @VanWineFest for news on tickets and sold-out events.

Join the conversation at #VIWF. ABOUT THE VANCOUVER INTERNATIONAL WINE FESTIVAL Canada’s premier wine show marks its 40th edition of pairing wine, food and the performing arts from February 24 to March 4, 2018. The festival features Wines from Spain and Portugal and showcases 173 wineries from 15 countries (including 38 wineries from Spain and 20 from Portugal) pouring 1,450+ wines at 51 events to a projected 25,000 admissions.

The Bacchanalia Gala Dinner + Auction opened the festival on Saturday, February 24 at the Fairmont Hotel Vancouver; it is sponsored by Nicola Wealth Management.

The Trade Days Conference runs Wednesday, February 28 to Friday, March 2. The festival has been named the #1 Food, Wine & Hospitality Event in Canada

by New York’s BizBash for five years running.

The festival is produced by the Vancouver International Wine Festival Society, which has three mandates: provide an informative, educational and entertaining wine experience for public and trade; be a premier marketing opportunity for the wine industry and festival partners; and raise funds for the Bard on the Beach Theatre Society. Since 1979, the festival has raised $9 million for the performing arts. Major sponsors are Delta Air Lines and the Vancouver Sun; major industry partners are the BC Liquor Distribution Branch, BC Liquor Stores, Import Vintners & Spirits Association, and Tourism Vancouver. The festival is made possible through the gracious support of our participating countries’ consulates and embassies. www.cdngrapes2wine.com

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Canadians Warm To Canada’s Agriculture Day Regina, Saskatchewan, Feb. 13, 2018 Thousands of Canadians participated in Canada’s Agriculture Day events across the country, marking the second consecutive year a day has been set aside for a national celebration of food and those involved in agriculture.

“We are thrilled at the level of participation and engagement by producers and partners of Canadian agriculture, as well as consumers, in events and social media activity across the country,” said Candace Hill, manager of Agriculture More Than Ever, one of the driving forces behind Canada’s Agriculture Day, first celebrated on Feb. 16, 2017.

“We are still finalizing the numbers, but we are confident this year’s celebration was even bigger and better than last year’s,” Hill said. “It’s a testament to our com-

mitment and passion within the industry to showcase the effort and care that goes into producing food everyday.”

Canada’s Agriculture Day inspired hundreds of events across the country, opened doors to food conversations through social media, and showcased the industry to young people who attended a day-long, marquee event in Ottawa alongside industry and political leaders. It was among the top topics trending in Canada on Twitter and thousands of people engaged through a variety of events, from small community gatherings to large forums.

“Canadian agriculture is something to celebrate on many levels,” said Lawrence MacAulay, minister of Agriculture and AgriFood Canada, who participated in the Canada’s Agriculture Day celebration in Ottawa.

“Our agriculture and agri-food sectors contribute over $110 billion to our economy and generate thousands of quality middle-class jobs in the food processing, transportation and retail sectors across Canada. Our government has an ambitious plan to grow Canada’s agriculture sector in order to meet our target of $75 billion in agrifood exports by 2025,” MacAulay said. “At a local level, family farms are the lifeblood for many rural communities; they support small businesses, their children attend local schools and they contribute in many ways to the quality of life in rural Canada.”

“This was a great opportunity for people throughout the industry and across the country to come together, dialogue with consumers, as well as and share ideas on how Canada can meet the challenge of feeding the world’s growing population,”

said Farm Credit Canada president and CEO Michael Hoffort, who was one of several speakers at the Ottawa celebration. “The relationships that were forged as a result of Canada’s Agriculture Day will help move the industry forward into the future.”

Hill said this year’s celebration saw the participation of hundreds of partner groups, including industry associations, community groups, individuals and the media. Many have already expressed an interest in participating in next year’s celebration. ~ Trevor Sutter Corporate Communication Farm Credit Canada 1-855-780-5313 trevor.sutter@fcc.ca

www. https://www.agriculturemorethanever.ca/cdn-ag-day/

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Canadian Grapes to Wine • SPRING 2018

Douglas Launches New Case Packer for IQF Applications

Douglas’ new TriVex® CLi case packer is designedspecifically for pillow and gusseted bags of Individually Quick Frozen (IQF) products such as frozen vegetables and potatoes. The integrated case erector, upright and flat pack flexibility and large size range meet market demands for case packing both retail and food service bags.

About Douglas Machine Inc. Founded in 1964, Douglas Machine Inc. is a global leader in automated secondary packaging solutions for paperboard, corrugated and shrink film. The company specializes in the design and manufacture of case & tray packers, shrink wrap systems, cartoners, sleevers and palletizers.

Based in Alexandria, MN, Douglas is an employee-owned company that has installed more than 9,000 machines in 30 countries. For more information, visit www.douglas-machine.com.

Email Douglas Marketing at updates@douglas-machine.com or visit www.douglas-machine.com for additional information regarding Douglas’ capabilities.

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Douglas Machine Inc. 3404 Iowa Street  Alexandria, MN 56308 USA Telephone: 320.763.6587  Fax: 320.763.5754 E-mail: info@douglas-machine.com Internet: www.douglas-machine.com

News Release FOR IMMEDIATE RELEASE

Providing Contact:Canadian Douglas Machine Inc. Marketing T: 320.763.6587 Grapevine updates@douglas-machine.com Solutions BRITISH COLUMBIA Nathan Phillips p. 250-809-6040 bcsales@vinetech.ca

ONTARIO Wes Wiens/Tina Tourigny p. 905.984.4324 sales@vinetech.ca

QUEBEC Alexandre Jacquel p. 905.984.4324 qcsales@vinetech.ca

NOVA SCOTIA Ian Kaye p. 902.740.2493 nssales@vinetech.ca

Douglas Launches New Case Packer for IQF Applications ALEXANDRIA, MN. (February 8, 2018) – Douglas’ new TriVex® CLi case packer is designed specifically for pillow and gusseted bags of Individually Quick Frozen (IQF) products such as frozen vegetables and potatoes. The integrated case erector, upright and flat pack flexibility and large size range meet market demands for case packing both retail and food service bags.

Canadian Grapes to Wine • SPRING 2018

About Douglas Machine Inc. Founded in 1964, Douglas Machine Inc. is a global leader in automated secondary packaging solutions for paperboard, corrugated and shrink film. The company specializes in the design and manufacture of case & tray packers, shrink wrap systems, cartoners, sleevers and palletizers.

Based in Alexandria, MN, Douglas is an employee-owned company that has installed more than 9,000 machines in 30 countries. For more information, visit www.douglas-machine.com. www.cdngrapes2wine.com Email Douglas Marketing at updates@douglas-machine.com or visit www.douglas-machine.com

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CELLAR-TEK AND FRANÇOIS FRÈRES SUPPLEMENT THEIR OFFERINGS WITH A NEW RANGE OF HUNGARIAN OAK BARRELS Cellar-Tek Supplies, a winery, brewery, cidery and distillery supplier based in British Colombia and Ontario, has, for several months, been providing a new option that answers the increasing demand from wine-makers for a broader choice of winemaking and ageing tools. That option is a new range of Hungarian oak barrels offered by François Frères (Burgundy), in addition to the traditional French oak barrels. Hungarian oak brings new aromatic profiles together with competitive prices.

Perry Maxfield, Cellar-Tek’s General Manager, emphasizes that Hungarian oak barrel will respond to the new expectations of the market: “Hungarian oak brings very interesting spicy notes as much to the Syrah, Pinot Noir and Merlot from the Okanagan Valley in British Colombia as to the Cabernet Franc and Pinot Noir in Ontario. Hungarian oak offers very similar organoleptic characteristics to French oak and adapts to every sort of ageing, although remaining in a more accessible price range”.

An assessment confirmed by Max Gigandet, François Frères’ cooperage General Manager: “there is an increasing demand from the greatest wineries for a wider choice at an accessible price. The new Hungarian oak barrels are a good answer to this demand and they are a fit both for our Burgundian varieties and for other grape varieties, for which the results can be exceptional. Moreover, the trend is to search for more discreet oaky notes, which won’t overwhelm the “terroir”of the wines. François Frères’ several generations of know-how and experience deliver an exceptional subtlety and a minimum impact on wines, specifically by adjusting the lengths and the quality of toasting.

As always, our extensive knowledge and choice of the best terroirs in Hungary allow a selection of the best oak trees and of the finest grains, which will provide a perfectly controlled toast during the ageing of great wines”.

The number of wine estates in Canada has grown significantly in the last 25 years and the ageing of fine wines in oak barrels has followed the same trend.

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Cellar-Tek and François Frères, partners since 2013

François Frères cooperage and Cellar-Tek Supplies - providers of both equipment and supplies for the wine, beer, cider & spirits industry - both share the same abiding values of excellence, quality and consistency, a philosophy which led to a distribution partnership for the Canadian market in 2013.

François Frères

François Frères has been committed to listening to its customers and providing them with a guarantee of excellence since it was founded in 1910. One of their fundamental values is consistency: François Frères cooperage, located in the heart of Burgundy, combines exceptional expertise with high-tech precision, in the purest artisan-cooper tradition.

The company’s years of experience producing high-quality barrels is the result of a permanent dialogue, and a relationship of trust, with winemakers and wine merchants in the search of customized solutions. It is this ability to listen closely to its customers that has enabled François Frères to establish a presence on five continents in the space of four generations.

Today, the François Frères Cooperage is proud to include the greatest international wine houses and estates among its customers.

Its main export markets are the United States, Canada, Australia, Italy, Spain, New Zealand, Portugal… as well as Brazil, and Israel in recent years.

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