Canadian Grapes To Wine Magazine - Fall 2014 by Canadian Grapes To Wine

PM # 41262017

The Most Read Business To Business Wine Industry Publication In Canada FAL L

2014

MOONSHINE SHIPPING LAWS UPDATE THE ROLE OF ENZYMES

NATIONAL WINE AWARDS

What’s being said… Jaime Joyce, Author of Moonshine “Hooch. White lightning. White whiskey. Mountain dew. Moonshine goes by many names. So what is it, really?”

Bruce Plaxton, CPA, CA, CBV at BDO LLP “The fair market value is the starting point and the price is the end result.”

Sibylle A. Kreiger, Weber, Lallemand “Interestingly, when co-inoculation is practiced, the activity of the bacteria is suppressed by the yeast during alcoholic fermentation (AF).”

Ryan Bosgoed, Ontario Grape Grower “Listen to what your professors are saying, you will use it!”

Mark Hicken, Lawyer, Vancouver, BC “I personally find it hard to believe that this does not violate my rights to liberty and security of my person.”

Page 2 Canadian Grapes to Wine • Fall 2014

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Editors Note PM # 41262017

Published Quarterly March, June, September and December by 2250 Camrose Street, Penticton, BC V2A 8R1

Tel. 250-492-6036 Fax 250-492-9843 email: editor@cdngrapes2wine.com www.cdngrapes2wine.com

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Subscribe today! Tari in the middle of the Aqualillies at Black Hills Estate Winery. What a fantastic summer we had. As you can see by the photos I attended a few great summer events. The most unusual by far was held in August at Black Hills Estate Winery in the Okanagan Valley. Of course there was delicious food, (Created by guest Chef Darren Patterson) scrumptious wines and the spectacular scenery of wine country, but what set this event apart was the water ballet by a group of 5 young women that call themselves Aqualillies. Simply gorgeous and I believe a first for water ballet being performed in a vineyard. All across Canada, in most of the growing regions I have heard from, all the growing news for this season has been positive. Much of the harvest south of us will be over by the time we go to press. A grower in Washington State’s Horse Heaven Hills began the season August 19th by bringing in 1.6 tons of Marquette. The hottest topic is still shipping wine across Canada and the provinces that won’t play nice. To date, only two provinces have embraced the spirit of a free trade in Canadian wine: British Columbia and Manitoba. On a happier note it is the best time of year once again. The harvest and crush. A winemaker only gets so many in a lifetime. That one chance to possibly make the best wine of his or her career. Most wineries become abuzz with excitement, the holiday feeling of crush. Long hours spent wet, sticky and cold are the norm. Good food brought by the winery chef, winemaker’s wife, or hands-on owner helps the staff get through the long days along with some spiked coffee. Once again my hat is off to the many talented ladies and gentleman that make some of the best wines in the world and to those that grew them. Happy Harvest! Tari Di Bello, Editor

www.cdngrapes2wine.com

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Publisher: Don Kendall Managing Editor and Director of Sales: Tari Di Bello Creative Services Manager: Kirk Myltoft Circulation Manager: Sue Kovacs 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.

ISSN 1188 - 1348 Publications Mail Registration No. 41262017

ON THE COVER Bin of “just harvested” Canadian grapes. Photo by Judy Bishop.

PM # 4126 2017

The Most Re ad Business

To Business

Wine Indust ry

Publication FALL

In Canada 2014

MOONSHINE

SHIPPING LAW

S UPDATE

THE ROLE OF Judy Bishop - The Travelling Eye is a ENZYMES NATIONAL veteran photographer, world traveler, WINE AWAR DS writer and technology marketer. Judy Bishop has been a Getty Images photographer since 2007. She provides quality corporate and personal photographic services to select clients, and photographs our covers. Judy is applying her deep knowledge of oenology and the Okanagan Valley to a multi-year photo project in collaboration with one of Canada’s leading wine writers, she is capturing images for a book about the “four seasons of the Okanagan wine industry”, to be published in the not too-distant future. Judy is based in Vancouver and Kelowna BC. (travellingeye@judybishop.ca)

Canadian Grapes to Wine • Fall 2014 Page 3

Hot Topic Mark Hicken Mark Hicken is a Vancouver lawyer providing a full range of legal services to the wine industry through his own law practice, Vintage Law Group, located in Vancouver, BC . Mark believes that effective legal advice must be provided in the context of a client’s business objectives. This is critical in the Canadian wine industry where regulatory structures affect every aspect of the business from conception to consumption.

Shipping Laws on wine within canada Last updated July 24, 2014

This article provides a summary of the shipping laws regarding wine (and other liquor) within Canada. This article is updated frequently. However, the laws in this area are changing rapidly so please contact me (or your own lawyer) in order to ensure that you have the latest information. If you are interested in wine shipping issues related to bringing wine from a foreign country to Canada, please see this article: Bringing Wine to Canada After a Trip at www.winelaw.ca. The shipping of any alcohol from one province into another province was previously prohibited by a federal law (which stems from the prohibition era) called the Importation of Intoxicating Liquors Act (Canada). However, on June 28, 2012 that law was amended by Bill C-311. While the general prohibition remains in place, the Bill created a national personal use exemption for wine subject to applicable provincial laws. In June 2014, the federal government also amended the law to extend the personal use exemption to include the interprovincial shipment of beer and spirits. That amendment was effective June 19, 2014. However, the various provinces have not embraced the spirit of these changes and have created various barriers to interprovincial “direct to consumer” shipments. The following chart (next page) summarizes my views on the ability of consumers to receive “direct to consumer” interprovincial shipments of wine under the laws in the various provinces. See www.FreeMyGrapes.ca for more detailed analysis and other interpretations of the law. 1. Current Law on Shipping The original prohibition was contained in section 3(1) which states: Notwithstanding any other Act or law, no person shall import, send, take or transport, or cause to be imported, sent, taken or transported, into any province from or out of any place within or outside Canada any intoxicating liquor, except such as has been purchased by or on behalf of, and that is consigned to Her Majesty or the executive government of, the province into which it is being imported, sent, taken or transported, or any board, commission, officer or other governmental agency that, by the law of the province, is vested with the right of selling intoxicating liquor. This section effectively makes it illegal to import alcohol from one province to another or into a province from another country unless the alcohol is going to, or is otherwise authorized by, the governmental agency responsible for selling liquor within that province (e.g. the provincial liquor control board - in BC, that’s the BC LDB). In other words, the federal law basically bans all importation or transport of liquor/wine across provincial borders or national borders unless the importation is authorized by the receiving province’s liquor board. However, Bill C-311 added an exemption in section 3(2)(h) which exempts the following types of importations from the blanket prohibition: Page 4 Canadian Grapes to Wine • Fall 2014

(h) the importation of wine from a province by an individual, if the individual brings the wine or causes it to be brought into another province, in quantities and as permitted by the laws of the latter province, for his or her personal consumption, and not for resale or other commercial use. [update: this exemption was further amended to include beer and spirits effective June 19, 2014] As a result, it is no longer illegal to import wine, beer or spirits from one province to another province so long as the amount at issue are for personal consumption and so long as the destination province’s laws allow for the shipment. So effectively, the federal government has “passed the buck” on this issue to the provinces. Fortunately, some provinces either had existing laws that permitted the interprovincial importation of wine or have adopted such laws. However, some provinces (like B.C.) are now trying to make distinctions between the interprovincial importation of Canadian wine shipped from wineries and the importation of other wines (e.g. U.S. wine purchased from a retailer in another province). Such distinctions create confusion for both consumers and wineries. On a practical level of course, there are no routine inspections at provincial borders so any “offside” transactions are rarely detected. Differences of opinion now exist as to the effect of the various provincial and federal laws in question. The table (next page) represents my view. However, there is a more detailed analysis and summary of the various positions on the FreeMyGrapes web site: http://www.freemygrapes.ca/provinces.shtml Obviously, the end result of any remaining provincial restrictions is rather foolish in that wineries within Canada may not be able to legally ship their products to Canadians in a particular province depending upon that province’s laws. 2. Issues with Enforcement Even with the changes discussed above, there are still many legal problems with Canada’s current system including the 1928 federal law. Jurisdiction. Issues of enforcement arise because liquor boards in one province do not have jurisdiction over wineries located in another province. How could a liquor board take action against a winery in one province that shipped in violation of the laws in a different province? Does the liquor board of one province intend to pressure the regulator in another to take enforcement action against the wineries that they license or ask the RCMP to do so? However, there is a more detailed analysis and summary of the various positions on the FreeMyGrapes website: http://www.freemygrapes.ca/provinces.shtml Obviously, the end result of any remaining provincial restrictions is rather foolish in that wineries within Canada may not be able to legally ship their products to Canadians in a particular province depending upon that province’s laws. www.cdngrapes2wine.com

Shipping Laws In Canada

continued..

Constitutionality of IILA. The federal law (IILA) that causes these problems is over 80 years old and was passed at the end of prohibition for reasons, which are unrelated to the current liquor distribution system. One prominent Toronto lawyer has recently written an article arguing that IILA is unconstitutional. I agree with that conclusion, as do many other lawyers who are knowledgeable in this area. The main argument that has been advanced to date is that IILA and the provincial markup policies are in violation of s.121 of the Constitution Act, which guarantees a free trade zone within Canada for Canadian produced products such as wine. However, there are also possible arguments under the Charter of Rights ... under IILA, a person could potentially be imprisoned for a violation as simple as carrying one bottle of wine for personal consumption across a provincial border ... I personally find it hard to believe that this does not violate my rights to liberty and security of my person. There are also other grounds of challenge, which could be made to restrictive liquor board policies including under administrative law, constitutional law, and trade agreements such as NAFTA. What is also really interesting is that the foundation for the provincial liquor monopolies is based on this archaic law. If any liquor board actually took enforcement action, there would no doubt be an immediate constitutional challenge to the law (as well as exceptionally bad press and media coverage for the monopolies). If the law were struck down, the liquor boards would lose their monopolies. That’s a big gamble for a monopoly to take. History of Liquor Monopolies. The liquor monopolies might well consider the fate of the Washington state liquor monopoly after it took similar enforcement action decades ago. Back then; Washington State had a liquor distribution system similar to BC’s current one. A prominent Seattle physician hated the fact that the importation of wine (even U.S. wine) into Washington state was restricted and subject to mark up by the liquor board. As such, he bought a lot of wine from out of state and imported it (technically illegal). The Washington liquor board raided his house, seized the wine and charged him. The subsequent public outcry was so great that the Washington state government decided to reform the entire system, effectively eliminating the import restrictions and privatizing wine and beer sales. Please contact me for more info, questions, comments or a formal legal opinion. I have advised a number of BC wineries on these issues so I can likely provide answers to your questions quickly. www.cdngrapes2wine.com

Canadian Grapes to Wine • Fall 2014 Page 5

Winemaking CONSIDERATIONS FOR SELECTING and EVALUATING A CLEANING AGENT The standard bulk chemicals that we use in our industry for cleaning are caustic soda (either sodium or potassium hydroxide based) and Citric Acid. Although widely used, this combination is limited in effectiveness, and can involve worker-safety issues as well as long-term damage to winery equipment and surfaces. Caustic soda solutions, if maintained above pH 10, are highly effective at dissolving tartrates and heavy deposits. When used as a multipurpose cleaner, however, some negative side-effects can result. A caustic solution can be effective at decolorizing and dissolving organic soil, but it also denatures and chars these soils at the same time. This is due to the pH differential between the caustic solution and wine (pH 14 to ~3.5 respectively). Denatured and charred organic soils are seen on wine surfaces as a brown/black deposits. The use of caustic can therefore actually create new stains, which provide opportunity for the development of biofilms. In additions to the points above, if a caustic is sodium based, it is potentially environmentally degrading (high sodium effluent can cause sodic soils). After caustic use, it has become common practice to rinse with a low dose aqueous citric acid solution to neutralize any residual (Na or K) salts and reduce Ca/Mg scale. This process will not, however, remove the charred stains and biofilm left behind by the caustic treatment. This cleaning combination using bulk chemical may be ubiquitous and may seem inexpensive, but it can be potentially ineffective and creates new winery headaches. An Alternative Built formulations are a blend of synergistic compounds that allow for optimized cleaning, while respecting your equipment, cellar staff and saving water. In addition to the actual cleaning solution, these complex formulations include surfactants, chelating agents, water conditioners and rinse aids. The chelating agents assist with the removal of minerals that can be associated with the water. The surfactants (surface active agents) reduce the surface tension of the water and help to keep the debris in solution. This allows for the effective removal of dirt and/or soil from the area. AiRD products also have a built in rinse aid that leaves the system clean, spot free and neutral. Instead of bulk caustic, we would recommend using a formulated carbonate based system.

Once the cleaning solution has been drained, it is important to rinse the cleaning solution from the system. This clean water rinse is the next stage. It is important that this water rinse respects the system and does not re-deposit contaminants from the water, this stage is also important as residual alkali cleaner is incompatible with many of the acid based sanitizers. When using AiRD cleaning products, a citric rinse is not required. Eliminating this step saves time, energy, chemicals and water. The final stage is the actual sanitation phase. Sanitation is only effective if cleaning has effectively removed all residues - organic, inorganic, color, tannins, and microbial materials. An optimized program follows the W.A.T.C.H. rule (water, action, temperature, concentration and heat), while also considering; soil type (organic, inorganic or combination) and presence (light, moderate or heavy load), soiled material (stainless steel, hoses, concrete), and water condition in addition to the activity of the cleaning agent itself. By understanding these factors you can minimize the amount of cleaning and sanitation agents used, as well as conserving water and energy. The validation of your program can be determined by traditional and advanced microbiological techniques, which range from plating, DNA analysis and ATP bioluminescence. Essentially, once you are finished the area should look, smell and feel clean! Documentation and Safety Considerations It is essential that you maintain records on your regime and incorporate cleaning and sanitation protocols into every stage of your quality assurance program, insuring that the cleaning and sanitation agents selected are appropriate. All products used in the sanitation program must be approved for use, including the concentration that you intend to use it at. Do not decant into unlabeled containers and do not deviate for the prescribed use. Proper Personal Protective Equipment (PPE) should be respected. For details on PPE, please refer to the specific MSDS. - Submitted by Scott Laboratories

Percarbonates (either potassium or sodium based) are effective at dissolving wine soils at a lower pH than caustic solutions. Due to the built formulations of AiRD products, the soils are removed from the wine contact surface, retained in the water solution and rinsed freely from the system. The formulation itself is fully biodegradable within 30 days.

AGRICULTURAL NETTING & FABRICS

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Page 6 Canadian Grapes to Wine •Fall Fall2012 2014

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Winemaking ONTARIO’S EMBRACE OF WATER CONSERVATION IN WINEMAKING Ontario’s wine industry has grown rapidly from a promising, local curiosity to a burgeoning international presence, and the Wine Council of Ontario is working to ensure that the industry’s management of natural resources can keep pace. Utilizing the expertise of the BLOOM Centre as an enabler and facilitator, the Wine Council is turning Ontario’s wine sector into a hotbed for sustainable water innovation.

S COT T L A B O R ATO R I E S YOUR TRUSTED SOUR CE FOR KNOWLEDGE, QUALIT Y AND I N N O V AT I O N S I N C E 1 9 6 9 . Supplying corks to Canadian vintners continuously since 1977. Founding member of the Cork Quality Council.

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Informed by the Wine Council’s Sustainability Committee, an active gathering of concerned winemakers and winery operators, a variety of technology pilots and projects are underway to minimize water consumption and establish best practices in Ontario’s wine industry. Six key areas of focus have been identified, including off-site wastewater disposal and water-supply uncertainty, which are now being addressed systematically. One pilot project, conducted at Cave Spring Winery, has already led to a planned full-scale installation of BioGill, an innovative wastewater treatment technology. In Prince Edward County, one of Ontario’s fastest growing wineproducing regions, water use baselines have been established, and two pilot projects are planned for August: Well-monitoring at Broken Stone Winery, and water-use monitoring at Norman Hardie Winery. Rainwater harvesting, real-time monitoring of wastewater composition, and a number of other methods are also being explored to determine how to use water most efficiently within a winery. An online best practices program is being developed to turn the results of these studies into learnings that any winery can apply. More information on the work being done in Ontario’s wineries can be provided upon request, and updates will be available frequently. “Our work with the Wine Council of Ontario is going to drive the adoption of innovative and sustainable water solutions, which will improve the competitiveness, and the future growth of Ontario’s wine industry,” said Kevin Jones, CEO, BLOOM. About BLOOM: Sustainability Applied. BLOOM acts as a bridging agency between industry and solution providers, bringing innovative and sustainable solutions to the market. They conduct pilot projects of innovative technologies, identify opportunities for improvement within facilities, and manage the transition from the status quo to efficient resource management. Past and present collaborators include the Wine Council of Ontario, the Ontario Craft Brewers, Steamwhistle, Sleeman Breweries, Waterfront Toronto, Weston Foods, Algoma, and Gay Lea Foods, among others. www.bloomcentre.com www.cdngrapes2wine.com

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Canadian Grapes to Wine • Fall 2014 Page 7

Winemaking Corrie Krehbiel

Q & A

Corrie Krehbiel is a Canadian winemaker currently working as the technical winemaking consultant at cellar•tek. With 10+ years of Okanagan wine making experience and over 5 years of oenology studies, she heads up the technical wine making products portfolio.

• Have you given the juice enough time to settle? In reasonable conditions, enzymes work quickly, but gravity takes time to settle and compact these particles.

Ask Corrie

Why am I unable to use just one enzyme for all of my additions?

Question: Hi Corrie, I’ve sure heard a lot about using enzymes in my Enzymes are highly specific and act only on one substrate. Winemakers winemaking but to be honest, I don’t really understand them. Can you are often most familiar with pectinases which break down pectins, the help me understand the role of enzymes in my winemaking procedures ? complex polysaccharides present in grape cell walls. Coupled with glucans, cellulose and hemicelluloses, pectins are responsible for wine Answer: Thanks for the question, as it turns out, you’re not the only viscosity, clarity and filterability. Pectinase is not a single enzyme; there winemaker whose a bit in the dark when it comes to enzymes and their are at least six different pectinases that break down the pectin molecule. role in winemaking. The main pectinases are pectin lyase (PL), pectin methyl esterase (PME), polygalacturonase (PG), arabinanase, rhamnogalacturonase and What are enzymes? galactanase. Each of these pectinases targets a different segment of the Enzymes are proteins produced from fungi that are active in the wine pectin chain. Enzyme producers create blends of these pectinases, with environment. Their purpose is to promote and accelerate reactions. additional activities, to promote juice extraction, aromatic extraction, Pectinases produced by Aspergillus niger are active at wine pH, resistant color and tannin extraction and settling. to SO2 and alcohol and are active at common juice temperatures. For example, juices that have been affected by botrytis may contain glucans, high molecular weight polysaccharides that are very viscous. How do enzymes promote settling? When you crush and press your grapes, the larger particles will settle Wines produced from juice containing glucans will be difficult out via gravity. The smaller particles, however, remain suspended in the to settle and filter. In this instance, treating the juice juice. These small particles have a positively charged centre surrounded or wine with a B-glucanase (such as Endozym by a negatively charged pectin layer. The particles repel each other due Antibotrytis or Extralyse) will reduce the to their similarly charged exterior. Pectic enzymes, such as ICS 10 Eclair, glucan chain length and improve the Lafazym CL and Lafazym Press, degrade the pectin layer of these smaller wine’s filterability. molecules allowing parts of the positively charged protein to be exposed. The small particles are then able to attract, rather than repel, and settle continued... out of solution. Positively charged fining agents such as Gecoll Supra and Gelsol are often added in conjunction with the enzymes to aid in the particle conglomeration thus promoting faster juice settling. My juice is settling poorly and I have a large percentage of lees. What factors should I consider? • Are you using the correct enzyme for your application? • How cold was the fruit and juice during processing? Enzymes work slowly at lower temperatures.

• Is the juice pH low? Low pH reduces enzyme efficiency.

• Is your enzyme within the specified expiry time frame? Enzyme activity decreases with time. • SO2 and bentonite denature enzymes. • Did your efficient new harvest helper mix the enzymes in the same bucket as the SO2? Page 8 • Canadian Grapes to Wine Fall 2014

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• Did you rehydrate and add the enzyme per the manufacturer’s instructions to ensure effective dispersal throughout the juice?

Winemaking

Ask Corrie continued Are enzymes only used in white wine making?

No, there are specific enzyme blends (such as AEB’s ICS 10 Rouge and Laffort’s Lafase HE Grand Cru) that have been formulated especially for red winemaking procedures. Aside from the reduction of viscosity to promote faster sedimentation and clarification, enzymes for red wines will also help facilitate color, tannin and polysaccharide extraction as well as increasing the volume of free run wine during pressing. Enzymes in red wine production tend to be deactivated by the very tannins they help extract giving them a fairly short lifespan in a red must environment. For this reason it’s recommended that red wine enzymes are only added in optimal conditions. This would be at the onset of fermentation when the temperature is above 18oC. A pump-over is always a good idea to ensure homogenization throughout the must.

Enzyme Trials

In conclusion, enzymes have proven to be a valuable addition to the winemaker’s tool box. When used correctly they can help improve both the efficiency of your winery and the quality of your wines, so don’t be afraid to ask for help and get enzymes working for you in your winery. Your supplier should be a valuable asset in helping you chose the correct enzyme to meet your specific application. Contact your supplier to find the correct enzymes, dosage rates and procedures for your wines. Happy Harvest! - Corrie

Supplier News Cellar Tek is distributor for Saver Glass As of May 2014, cellar•tek supplies ltd. was awarded the official

Western Canadian Distributorship for Saverglass, the worldwide leader in the production, customization and decoration of premium and super premium bottles.

Saverglass offers a packaging solution that will complement cellar•tek’s existing line of closures including STELVIN® screwcaps and capsules. Alayna Nicol has accepted the position to manage the sales in this new packaging products portfolio. As part of their service to the BC industry, they will locally stock quantities of the most common glass molds and will also inventory several large format bottles. “We are very excited to add Saverglass to our product portfolio. It will give our customers another high quality product line that is readily available right here in BC.” stated Director of Alayna Nicol Sales, Perry Maxfield. “I’m excited to offer our customers packaging solutions that now include one of the best glass bottle manufacturers in the business, Saverglass!” said Alayna Nicol, Sales Representative for STELVIN® and Saverglass. www.cdngrapes2wine.com

iltrox lifespan of the F d n a ut hp ug ro with the th d.” “I'm very happy my neighbourhoo in is k te r• la el c ve that Filter Sheets. I lo Wines.

inemaker at Lydia Tomek, W

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Canadian Grapes to Wine • Fall 2014 Page 9

Supplier News AVERY DENNISON INTRODUCES CLEAR CUT ADHESIVE Avery Dennison Label and Packaging Materials will spotlight S7450, the newest

addition to the ClearCut™ portfolio of pressure-sensitive adhesives, at Labelexpo Americas in Chicago, September 9-11. ClearCut S7450 is a premium adhesive for wine, spirits and non-alcoholic beverages that, when paired with MDO film, allows for enhanced conformability in labeling unique, curved bottle designs. “Wine and spirits brand owners are challenged with delivering durable, clear and visually appealing labels on rigid containers, particularly on glass substrates with complex curvatures and surface imperfections,” said Matt Rompala, product and business development manager for wine and spirits with Avery Dennison Label and Packaging Materials. “With ClearCut S7450, brand owners can achieve the shelf appeal they are seeking, even on glass surfaces of lower quality.” S7450’s wet-out performance promotes effective bonding between the film and the glass bottle’s surface, even one with a high degree of surface imperfections.

It is commonly combined with a clear, thin film to imitate screen-printing on the bottle to deliver the ideal no-label look at a lower total applied cost. ClearCut technology significantly reduces adhesive ooze, improving productivity and reducing downtime associated with contamination on press and dispensing equipment. ClearCut provides a wider operating window, reduced waste, cleaner operations, less packaging line disruption and faster run speeds – in short, a faster and more cost-effective route to market. In addition, ClearCut is thinner than traditional film adhesives, providing converters lower transport costs, fewer reel changes and reduced energy usage and greenhouse gas emissions. Avery Dennison representatives will be available to discuss ClearCut S7450, the full ClearCut portfolio and its benefits at the Avery Dennison booth #119 at Labelexpo Americas 2014 September 9-11. See more at: http://label.averydennison.com

TRICOR BRAUN OPENS OFFICE IN INDIA

New facility supports firm’s commitment to Asian growth

TricorBraun, one of the world’s largest suppliers of jars, bottles and other rigid

packaging components, has commenced operations in India with the opening of TricorBraun-India, Pvt. Ltd. in Mumbai, India, Keith Strope, the company’s chief executive officer, said. “We have experienced excellent growth in India without an in-country office. TricorBraun-India will serve as sales office, distribution center as well as a global sourcing facility,” Mr. Strope said. “TricorBraun-India also supports our commitment to meeting the rapidly growing needs of the Asian package goods market. Presently, we have Asian facilities in Beijing, Guangzhou (Canton) and Hong Kong, China,”

Mr. Strope said. The office is located at 701/702 Mittal Commercia; Off M.V. Road, Marol Andheri East; Mumbai - 400059 India. The telephone number is +91 22 28502020/21 and its fax number is +91 22 28502022. Ashutosh Singhania is TricorBraun-India’s managing director. TricorBraun’s (www.TricorBraun.com) primary focus is designing, sourcing and supplying bottles, jars and other packaging components for personal care; cosmetics; pharmaceuticals; health care; food and beverage; as well as industrial and household chemicals. It has more than 40 offices globally and has one of the largest inventories of rigid packaging components worldwide.

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Wine Business Bruce Plaxton Bruce Plaxton, CPA, CA, CBV is a member of BDO’s Winery Services Team. Bruce can be reached at 250 763 6700 or 1 800 928 3307, or by email at: bplaxton@bdo.ca www.bdo.ca/wineries

Value Enhancement

Fair Market Value, Price and Potential Buyers

In our previous article we discussed the key value drivers for your business and how a Chartered Business Valuator (CBV) can assist in determining the value of your estate winery. In this article we will discuss targeting your buyer and the difference between the fair market value as determined in a business valuation and the price the business is sold for. Price versus fair market value: The fair market value is defined as the highest price available in an open and unrestricted market between informed and prudent parties, acting at arm’s length and under no compulsion to act, expressed in terms of money or money’s worth. Price is established after exposure to the open market and after negotiations between the seller and potential buyers takes place. The fair market value is the starting point and the price is the end result. The net tangible assets, expected future cash flow and the risk profile of the business operations are key value drivers which influence the value and price of your estate winery.

• The selling price may also be affected by the following factors: • The negotiating skills of the buyer, seller and their respective advisors; • The need and the desire of the buyer and seller to transact; • T he structure of the transaction (i.e. form and timing of payment); • The number of interested potential purchasers for a given business; and • The possible impact of “special interest purchasers” who may perceive certain synergies resulting from the combination of the acquisition target with their existing operations.

• Where a portion of the purchase price is made by way of contingent consideration (i.e. an earnout) as the buyer will be more likely to agree to pay for the synergies since the final payment will be dependent on actual performance. Targeting your buyer: You may be able to identify some buyers on your own (e.g. competitors, customers, suppliers, strategic buyers) but an apt advisor can assist you in identifying other potential buyers (e.g. obscure private equity funding or a foreign company). You will need to begin developing strategies to extract the maximum price by determining what kind of synergies a buyer could generate, the opportunity for financial synergies and possible motivation for paying more. Time should be devoted to creating a complete information package that will help identify these opportunities for potential buyers saving them time and generating interest. An experienced advisor will know your industry, how to motivate potential buyers to pay more and the strategies to create an auction-type process with numerous potential bidders. They will have a dedicated team that can actively manage the sale process while you continue to maintain the business operations. Your advisor can also provide the discretion necessary to keep the initial stages of the sale confidential. It is important to start early as Value Enhancement is an ongoing strategy of having processes in place to ensure that your estate winery achieves its potential value while maximizing your selling price.

One key step you will need to take when considering the sale of your estate winery is to identify your potential buyers. There are three main categories of buyers: Internal purchasers – family members or employees: These buyers generally do not have deep pockets and may require assistance from the seller to finance the acquisition. Selling internally can help to maintain the business vision of the current owner, but may not maximize the final selling price. Financial purchasers: These buyers generally view the acquisition of a business solely as a financial transaction. One type of financial purchaser plans to act in the role of ownermanager, while the second type tends to be financially sophisticated and normally relies on professional managers. Their goal is typically to resell the acquired company for a gain on a short timeline. Post acquisition synergies are typically not available to either type of financial buyer. Strategic or Special purchasers: These are premium buyers who are willing to pay more than the stand alone fair market value of a company as a result of potential post acquisition synergies the buyer will be able to take advantage of.

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Synergies relate to economies of scale that create cost savings and therefore increase post acquisition cash flow. A strategic advantage is a perceived advantage that should reduce the short term risk of the combined businesses. When synergies or strategic advantages exist, the value of the combined companies will be greater than the sum of the separate individual parts. The likelihood and amount of post-acquisition synergies actually paid for will increase when: • There are several perspective buyers who have expressed an interest in a business and one or more of the perspective buyers has the ability to realize synergies; • The target business has a unique competitive advantage, including brand recognition, market coverage, distribution network, customer contracts; • There are economies of scale that can be taken advantage of (i.e. elimination of back-office operations); • The industry is going through a consolidation phase, which normally increases the number of active buyers; • The business is large, as it is more likely to realize a premium for strategic benefits than a smaller business due to a better competitive position, market clout and level of buyer interest; or

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BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

Canadian Grapes to Wine • Fall 2014 Page 11

Winemaking

Co-Inoculation of SeleCted Wine Bacteria Sibylle A. Krieger-Weber - Lallemand

Co-inoculation refers to the increasingly popular practice of adding selected malolactic bacteria (MLB) early in the winemaking process. Properly implemented, co-inoculation provides multiple advantages in achieving the goal of a successful malolactic fermentation (MLF). Interestingly, when co-inoculation is practiced, the activity of the bacteria is suppressed by the yeast during alcoholic fermentation (AF). As the ethanol level is rising, however, the selected bacteria are acclimating incrementally. The acclimated bacteria then transition from their lag phase into their logarithmic growth phase at the same time as the process of yeast cell death. The result of this is known to be highly beneficial to bacteria and to malolactic fermentation itself. The following discussion will highlight the practicalities of co-inoculation in different pH environments compared to the traditional practice of introducing bacteria at the end of alcoholic fermentation. Advantages And Risks Of Co-Inoculation Strategies

Lactic acid bacteria and acetic acid production are common concerns when considering co-inoculation. Traditionally, inoculation with selected wine bacteria starter cultures has occurred after all fermentable sugars have been consumed. This is due to the desire of winemakers to avoid possible production of acetic acid and D-lactic. Over the past decade, however, co-inoculation has been applied with success around the world. Further, research has demonstrated that when correctly adhering to basic principles, these problems can be avoided. Volatile Acidity Production

Strong bacterial growth can inhibit yeast growth and lead to the production of excessive amounts of volatile acidity (VA). A study done by Rader (1963), however, puts this concern into perspective. Bacteria will begin to consume sugars and impact VA only when the degradation of organic acids is complete. Malic acid is consumed first, followed in by citric, fumaric and other organic acids. (See Figure 1). The degradation of sugars at this point will result in a significant increase in volatile acidity, but this is strongly influenced by the pH.

Concerns About pH LOW pH WINES (pH < 3.5):

For over a decade, research on low pH wines (<3.5) conducted by Lallemand (in collaboration with respected research groups worldwide) have shown that acetic acid will not be produced from sugars during growth of MLB or during the active MLF. In these experiments the selected bacteria showed no propensity to consume sugar. The limited acetic acid production (0.1 g/L) was noted only when almost 1/2 of the malic acid was degraded and the bacteria began to utilize citric acid. Trials conducted in <3.5 pH wines using co-inoculation versus post AF bacterial inoculation showed no difference in the final acetic acid concentration. Also notable is the fact that different MLB strains exhibit different abilities to degrade citric acid. Co-inoculation of yeast and MLB into Riesling juice showed that the co-inoculation had no influence on the AF. In fact, the co-inoculation MLF completed much faster than when the MLB inoculations were post-AF. The timing of inoculation also had an important impact on the sensory profile of the finished wines. In the co-inoculation experiment, the reductive environment generated by the yeast prevented the formation of buttery or lactic aromas. Wines were fresher and retained more varietal character. The results below derive from a research collaboration with Ramón Mira de Orduña at Massey University, New Zealand. The experiment was conducted with Chardonnay grapes from Hawke’s Bay in New Zealand. The fruit was pressed, no SO2 was added and the must was cold settled at 4°C for 24 hours. At that time 300 mg/L of DAP was added. Vinifications were carried out in triplicate. Initial must analysis was 20.7° Brix at pH 3.28. An ML compatible yeast strain (Lalvin CY3079) was used and two malolactic bacteria strains were trialed. For each yeast/bacterium combination, the MLB were inoculated either together with the yeast (co-inoculation) or post AF. The results presented in Table 1 show that post-AF inoculation always resulted in prolonged malolactic fermentation when compared to co-inoculation. Table 1: Time until end of malic acid degradation during vinification of Chardonnay must with co-inoculation and post-AF AF/MLF.

Fig 1. Metabolism of sugars and organic acids during MLF In wine.

In the first two weeks of the experiment, no significant differences in the degradation of glucose and fructose were seen. The alcoholic fermentations were progressing at the same rate. After 20 days, however, neither glucose nor fructose was detectable in the co-inoculation tests, whereas glucose and fructose had a combined concentration of 700 mg/L in the post-AF inoculation trials. The complete absence of these two sugars in the co-inoculation samples was clearly a source of increased microbiological stability. Degradation of citric acid was also different. In the co-inoculation treatments, citric acid was degraded faster and slightly more acetic acid was produced. The differences in final acetic acid concentrations , however, were small and statistically insignificant (Table 2).

Page 12 Canadian Grapes to Wine • Fall 2014

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Co-Inoculation of SeleCted Wine Bacteria continued HIGH pH WINES (pH > 3.5):

Co-inoculation can be an effective option when making wines with a pH greater than 3.5. It should be acknowledged that if the yeast fermentation becomes stuck or sluggish and this is not rectified, problems can arise. Bacteria can be opportunistic under such circumstances and populations can grow. Organic acid consumption will be followed by the degradation of sugars (resulting in the production of volatile acidity. These caveats aside, however, co-inoculation can be a very useful tool winemaking tool. In 2010 Zapparoli et al. published the results of their co-inoculation studies in red table wine production at >3.5 pH. Trials involved selected bacterial inoculations at the beginning of the AF using several grape varieties. In most of the microvinification trials, MLF was completed before or within one week after racking. The acetic acid content remained within an acceptable level (<0.60 g/L) as shown in Fig. 2 at right.

Fig. 2 Relationship between the pH and acetic acid contents in wines with co-inoculation with linear regression line relation coefficient (r2). (Zapparoli et al. 2010)

In addition to these trials, Zapparoli expanded tests to production scale (5,280gals/200hL) on highly structured (and ultimately high alcohol) Amarone wines in Italy. Again, the results were positive. The malolactic fermentation induced by co-inoculation was complete before the wine was racked. By contrast the wine inoculated post AF took 33 days longer. The acetic acid levels in the co-inoculation wine were actually lower than the level in the traditionally made wine. The authors concluded that the decrease in time compared to traditional MLF offers winemakers a significant advantage. Additional co-inoculation trials have been conducted on high pH red wines over the seven most recent vintages (northern and southern hemisphere). Massera et al. (2009) studied the comparative effects on fermentation performance, sensory and stability attributes on Malbec (see Figure 3). There were no observed negative effects on yeast population and alcoholic fermentation performance. Differences between the wine sensory attributes were not significant. Thus, in reviewing the science and practice of co-inoculation, we can say that under high pH wine conditions co-inoculation with a selected bacteria strain can be a viable alternative. As always, however, the winemaker must be attentive to the progress of the fermentations and the uniqueness of each lot of wine. Nutrition, temperature, turbidity, and choice of yeast and bacteria strains may each have an impact beyond the pH and the decision to co-inoculate. - Submitted by Scott Labs

Fig.3: Sensory descriptors of Malbec wines fermented with S. cerevisiae strain (INTA MZA) and Oenococcus oeni strain (Enoferm alpha) in co-inoculation (CO) and post-AF (SEQ) inoculation.

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Canadian Grapes to Wine â&#x20AC;˘ Fall 2014 Page 13

British Columbia Jim Martin Jim Martin has been involved with the wine and spirits industry for more than three decades. Originally from Vancouver, he started with the provincial BCLDB and discovered a passion for wine in 1977 when he stumbled across a 1975 Bordeaux. He left the BCLDB for the private sector becoming involved in the opening of Kelowna’s first private specialty wine store, Waterfront Wines. You can reach Jim at 778-484-5656 or email jim@metroliquor.com.

Okanagan Report I have been remiss of late writing about new wines from some of the hidden,

small boutique wineries up and down the Okanagan Valley. Here are a few to wet the appetite. Serendipity Winery is located on the Naramata Bench near Penticton, on the east side of Okanagan Lake. Owned by Judy Kingston and assisted by daughter and second-in-command Katie O’Kell along with former winemaker Richard Kanazawa and vineyard manager Craig McKenzie, the story began in 2005 when Judy took a holiday wine tour of the Okanagan with a view to finding a retirement property. Instead she bought an old fruit orchard and proceeded to rip out the orchard and have it completely re-configured to suit a vineyard. Two years later, eight acres of vines were planted to Syrah and Merlot as the main reds with Viognier and Sauvignon Blanc as the whites. Plantings of Syrah, Cabernet Franc, Pinot Noir and ‘a little Malbec for blending’ were added with the first harvest in 2009. Since late July, former Township 7 winemaker Bradley Cooper has taken over the winemaking reins at Serendipity.

The Spierhead 2012 Chardonnay is from their Gentlemen Farmer Vineyard. A bone dry wine with only 225 cases produced, this is a pure expression of Chardonnay fruit in that 70% is fermented in stainless steel with only 30% being barrel fermented for complexity. Crisp, oily with a hint of nuttiness, this is not a North American-styled Chard but rather one that emulates the wines of the tiny regions Macon or Pouilly Vinzelles in Burgundy. The 2012 Riesling ($22) shows why the upper bench that runs from beyond CedarCreek winery to southeast Kelowna is a very special place for producing exceptional Rieslings, if done right. Look for intense aromas of green apple, honeydew melon, nectarine, green tea and sweet lemon-lime. The fresh juicy palate is alive with tart green apples, honey, fresh, clean acidity combined with a hint of mineral on the finish that makes this a very versatile wine to be enjoyed with or without food. Try with steamed shellfish, grilled loin chops with a mushroom sauce or with soft cheeses like Brie or Camembert.

The 2012 Rose ($18) is a fine effort with its fresh cherry/ strawberry/sweet rhubarb aromas and flavours. The finish is crisp and fresh not cloying whatsoever. Great as an apéritif, serve it nicely chilled. A real thirst quencher in the summer heat. Nowhere on the label or on their website does it tell you what the variety is but since they grow Syrah, Merlot, Cab Franc, Pinot Noir and Malbec, it’s probably one of those or a combination of. The 2013 Sauvignon Blanc ($20) is a classic. Shows characteristics of passion fruit, grapefruit, kiwi, melon, white peach along with a hint of fresh cut green grass. A classic food pairing with this would be a goat cheese stuffed chicken breast with a mushroom sauce, steamed shellfish and grilled vegetables or risottos. The 2012 Viognier ($20) shows a bright straw, gold colour with vibrant aromas of Fuji apple, citrus, lemon, honey, candied ginger and creamy vanilla. The palate is rich and unctuous with delicate flavours of orchard and tropical fruit, ginger, white pepper and honey. Fantastic and delicious. Spierhead is one of the newest wineries in the Kelowna area. Located on Spiers Road in southeast Kelowna, the vineyard was planted in 2008 and has quickly gained a reputation for producing stellar wines, starting with their 2010 Pinot Noir, which was awarded #1Pinot Noir in Canada at the 2012 Canadian Wine Awards.

A stunning Pinot Noir, the 2012 Pinot Noir Gentleman Farmer Vineyard ($30) is an intense Pinot with fantastic colour, loads of rich strawberry, raspberry and cassis aromas with underlying vanilla, smoke, dark chocolate but it’s the flavour and texture that gets me going. A rich and velvety texture full of concentrated red and black fruit flavours, the palate is unctuous with full taste, balanced acidity and firm tannins. Only 97cases of this was produced so good luck in your search. It would be well worth it if you found some. Winemaker Bill Pierson making magic happen at Spierhead Winery.

Another Naramata winery gaining recognition is Howling Bluff. Their Sauvignon Blanc-Semillon was recently awarded the Lieutenant-Governor Award for Excellence in BC wine and promptly sold out. However, they do have their 2013 Pinot Gris ($18). Look for a delicious, rich mouthful of ripe pineapple, mango and papaya with a background of peach, nectarine and honeyed apricots. Perfectly in balance with the intense fruit flavour, the crisp acidity on the finish and the alcohol, this is one hell-of-a wine. Try pairing this with the Poplar Grove Double Cream Camembert or Naramata Bench Blue but I would like it just by itself with friends all around.

Also from Howling Bluff is the 2011 Summa Quies Vineyard Reserve Pinot Noir ($35). From a Judy Kingston and her new winemaker production of only 411 cases, this is a blockbuster Bradley Cooper at Serendipity Winery. Pinot Noir chock full of ripe raspberry, strawberry, Their 2013 Rose emulates the inaugural 2012, which and black cherry fruit aromas with hints of saddle was awarded Double Gold as the top Rosé in the 2013 leather, smoke, rose petal, brown sugar and All-Canadian Wine Championships. Crisp and dry vanilla/caramel. The texture on the palate is soft, lush, and juicy with loads of red with refreshing acidity, the wine explodes with an amazing dark salmon and black fruit flavours, vanilla, brown sugar, and milk chocolate, toasty oak and colour, the aromas are very intense with vibrant red cherry, plum and ripe peppery spice. Fantastic Pinot Noir from this up-and-coming producer. strawberry aromas with hints of sweet red licorice, grapefruit, violets and orange blossoms. The texture is soft, lush and juicy with delicate fruit flavour. There are lots more to discover up and down the valley and maybe some of those Excellent as an aperitif or with simple barbeque or picnic fare. will appear in the winter issue. - In Vino Veritas! Page 14 Canadian Grapes to Wine • Fall 2014

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British Columbia Miles Prodan President & CEO, British Columbia Wine Institute.

wine tourism in british columbia The summer’s preliminary numbers are in and it is looking like a record year for tourism in BC wine country. With five stunningly distinct wine regions to choose from, including Vancouver Island, Gulf Islands, Fraser Valley, Okanagan Valley and Similkameen Valley, as well as several emerging wine regions, visitors clearly took the opportunity to explore new wineries or rediscover their favourites and indicated support of BC VQA wine through their wallets. In the month of June alone, winery direct sales (tasting room sales at a winery location, including direct-to-consumer shipment) represented the single largest channel for BC VQA dollar wine sales in British Columbia at 27 per cent - a 20 per cent increase over the same period the previous year. The next largest channel was BC LDB liquor stores at 23 per cent of market share. The success in provincial wine and culinary tourism hasn’t been happenstance, and is due in large part to the BC Wine Institute’s long-term growth objective to ensure visitation to BC wineries is a key element to the health and vibrancy of the industry – with the most successful programs being those undertaken in cooperation with government and private sector partners including the BC wine country trip-planning companion, the British Columbia Winery Touring Guide. Created in partnership with Destination BC, the BC Winery Touring Guide provides a complete list of the more than 250 wineries in BC, including grape and other fruit wineries and cideries. It is an excellent example of a successful collaboration between

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the BC Wine Institute and Destination BC, providing visitors with more reasons to discover BC’s wine country. The Guide is available at visitor information centres, BC Liquor Stores and BC VQA Wine Stores across the province. The British Columbia Wine Institute also partnered for a third consecutive year with Visa Infinite® to offer one-of-a-kind winery experiences, special discounts and complimentary tastings at more than 30 participating BC wineries. It features a nationwide consumer awareness campaign, with ongoing social media support, providing yet another compelling reason to visit BC wine country, explore the wineries, meet the people and enjoy BC VQA wines. In addition to giving access to special and unique participating winery offerings, cardholders also had the opportunity to dine in unforgettable winery settings where portfolio BC VQA wines are expertly paired with seasonally inspired cuisine prepared by preeminent chefs like Top Chef Canada Winners Dale MacKay and Matthew Stowe. The numbers speak for themselves: BC Wine Industry’s $2 billion economic impact includes BC wineries welcoming over 800,000 visitors every year (more than the province drew for the Vancouver 2010 Winter Olympics), and generating $476 million in tourism and tourism employment related economic impact. In the end, each bottle of BC VQA wine a visitor enjoys delivers a sensory experience that is as extraordinary and distinct as the province itself - the perfect excuse to come back again and again.

Canadian Grapes to Wine • Fall 2014 Page 15

Wine Business Geoff McIntyre CA

Geoff McIntyre is a Business Advisor to the Agri food industry and Chartered Accountant for MNP LLP.

BC Wholesale Pricing Reform on the Horizon? When it comes to how (and if) BC’s current wholesale pricing system for wine should be reformed, key stakeholders are far from unanimous. Last year, when the BC government announced it was seeking public input in to a comprehensive review of the Province’s liquor policy, many in the wine industry (both producers and retailers) hoped the review would lead to changes to BC’s wholesale pricing system for wine. Critics of the current wholesale pricing system have said that the current system is hard to understand and results in many layers of tax that are buried in the retail display price. The end result is high consumer prices, particularly in bars and restaurants. They say the playing field is not level for all retailers due to the different discount factors. Finally, some experts wonder whether the practice of rebates to producers of BC VQA wines would withstand scrutiny under international trade agreements, since it favours BC wines over imports. BC has a mixed retail delivery system for liquor. While the government controls all aspects of licensing and wholesale distribution of alcohol, the retail sector is comprised of a combination of government liquor stores and privately-owned licenced retailers (private stores, restaurants and bars, and manufacturers with tasting room licenses). When it comes to BC wine, retail prices are set by the winery. This may be done in conjunction with the BC Liquor Distribution Branch (BCLDB) when the winery is seeking a listing in a government store. A price and a SKU is registered with the BCLDB for each individual product. The retail display price includes Federal GST (5%) and BC PST (10% for liquor). There is no true “wholesale price” that a winery charges to a licenced retailer. Instead, the wholesale price is determined by backing out the taxes (mentioned above) from the retail display price as well as a LDB mark up, which is currently 117% for BC table wine. The BCLDB has a program that rebates a portion of this mark up to producers of BC VQA wine as an incentive to sell through the government store channel.

From there, private retailers get a discount which varies depending on the type of licence. Licenced retail stores get a discount of 16% from the LDB wholesale price. Independent wine stores get a 30% discount and a small group of Rural Agency Stores get a 12% discount. Licenced retail stores (LRS) get a 16% discount while licenced establishments such as restaurants and bars get no discount. They pay the full LDB retail display price less the 5% GST and 10% BC PST. Restaurant and bar owners must mark up their prices more than normal to cover higher purchase costs resulting in prices that leave many visitors to the province will a case of sticker shock. During public input, several key stakeholders had included recommendations regarding the current system in their BC Liquor Policy Review submissions. Here is a summary of the key points on wholesale pricing outlined the submissions of some of the BC industry’s stakeholders: Modernize Wine British Columbia • The current system is complicated & results in high consumer prices in the medium to high categories (motivating consumers to seek cheaper, imported wines) • The system does not treat retail level licensees equally • The fact that LDB pricing formula/ mark up combines both a government revenue element and a built in profit margin does not promote efficiency or competition • Wineries must adopt the “wholesale discount” policies and therefore are denied a normal economic pricing model • RECOMMENDATIONS: 1. Replace current system with simpler flat tax or percentage-based tax 2. Implement the same wholesale price for all retailers 3. Keep policies which support BC producers Canadian Restaurant and Foodservice Association

Helping you Harvest New Opportunities MNP’s business advisors deliver a wide range of services beyond traditional accounting to meet your unique needs. Working closely with you, we help you identify opportunities for growth and expansion, enhance the performance of your operation, minimize your taxes and when you’re ready, develop a strategic succession plan. Contact Geoff McIntyre, CPA, CA, Business Advisor, B.C. Wine Industry at 1.877.766.9735 or geoff.mcintyre@mnp.ca

Page 16 Canadian Grapes to Wine • Fall 2014

• Licensed establishments are unfairly disadvantaged. Decreasing restaurant sales ultimately decreases government revenues • RECOMMENDATIONS: 1. Move to an Alberta-style flat tax 2. Implement a 16% wholesale discount for licensed establishments 3. Increase Licenced retail store discount from 16% to 20% BC Wine Institute • The current Ad Valorem system is fair & consistent •M ove to a volume-based flat tax would favour high-end import wines at the expense of medium priced BC wines • RECOMMENDATION: Keep the system as is BC Estate Winery Association • The Current Quality Enhancement (QEP) & VQA Support programs are critical for BC wineries. • RECOMMENDATIONS: 1. Keep the current system but reduce PST on liquor from 10% to7% 2. Apply PST & GST at the till

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Wine Business continued... by Geoff McIntyre, CA BC Restaurant and Foodservice Association

It appears that the BC government is committed to making changes, but any revisions to the current wholesale pricing model in BC will have to meet two • A flat tax works better in a fully privatized retail environment (like important criteria set out by the Liquor Policy Review: Alberta). It is not realistic in a blended retail environment like BC 1. Revenue neutrality – the costs associated with any reforms or • RECOMMENDATIONS: changes must be less than or equal to the incremental revenues to 1. Keep the current system the government, and 2. Give licensed establishments the same 16% discount as LRS stores 2. Any changes must respect existing obligations under collective agreements and interprovincial/international trade agreements The BC government released its Final Report from its BC Liquor Policy Review in November 2013. It contained 73 recommendations, but despite Despite the calls for more simplicity in the system, a move to a flat tax based submissions on the topic, there was no mention of changes to the wholesale on volume, as has been implemented in Alberta, does not appear to be in the pricing & distribution system. However, a BC government March 6, 2014 Press cards. Rather, the government’s reference to consistency for retailers seems to Release, dealing primarily with the concept of allowing liquor sales in grocery hint at a move to level the playing field by equalizing the discount percentages stores and farmers’ markets, the government made the following comment: available to different types of retailers. But with no clear direction coming “The B.C. government will be developing a new price-based wholesale pricing from industry stakeholders, it’s anybody’s guess as to what a revised wholesale model for wine and spirits distributed by the Liquor Distribution Branch, so pricing system for BC wine will look like. that the price all liquor retailers pay is consistent across the board”. Stay tuned...

Education Cool Climate Chardonnay Celebration kicked off annual event at Brock University Winemakers, grape growers and sommeliers went back to school July 18th as the International Cool Climate Chardonnay Celebration (i4C) kicked off its weekend event at Brock University. The educational session gave participants an opportunity to learn more about the impact various viticulture and winemaking practices have on Chardonnay. The sold-out session titled ‘School of Cool’ was presented by Brock University’s Cool Climate Oenology and Viticulture Institute (CCOVI) and the Grape Growers of Ontario as part of the i4C’s annual event that highlights the diversity of Chardonnay from Canada and around the world through a variety of food and wine events. Keynote speaker Tim Atkin, a prominent wine writer and Master of Wine (MW), described Chardonnay as the world’s greatest white wine variety. “Chardonnay is an expression of place and production, terroir and technique,” said Atkin. The event featured three panels that examined the role of innovation and technology in winemaking and grapevine yield as it relates to wine quality, and there was a discussion on the factors that influence viticulture practices. Master sommelier John Szabo moderated the discussions, which featured CCOVI viticulturist Jim Willwerth as well as 11 winemakers, grape growers and wine writers from around the world. Following the expert panels, participants attended a lunch that featured a tasting of 117 Chardonnays.

Winemakers, grape growers and sommeliers went back to school at the International Cool Climate Chardonnay Celebration.

CCOVI director Debbie Inglis said the institute is always pleased to work alongside industry partners to help develop and host educational sessions as part of the i4C’s annual event lineup. “Chardonnay is a wine style Ontario does very well, but it’s also wonderful to have the opportunity to celebrate and appreciate chardonnays from other cool climate regions around the world,” she said. www.cdngrapes2wine.com

Canadian Grapes to Wine • Fall 2014 Page 17

Ontario Debbie Zimmerman CEO of the Grape Growers of Ontario The Grape Growers of Ontario represents all processing grape growers in the province and I have had a chance to meet many of them and have come to realize how unique each one is. Grape growers are the kind of men and women who will lose sleep worrying about frost or too much rain because they know how much the weather can affect their crop. They’re the ones willing to take a risk on the varieties of grapes they’ll plant and the ones who protect the land for future generations. And they are the ones who are willing to help out a fellow grower because a successful farm equals a successful grape growing industry.

British Columbia Wine Sales – Best in Canada?

Each grower has a story as rich as the soil they farm. I look forward to introducing you to some of our growers. You’ll get to know who the growers are, where the grapes come from, their growing philosophies and how quality is created in the vineyard. To know a good wine is to know the Grape Grower.

“Humbled by early success”

Gerry Who - Gerry and Lia Spinosa Most grown varietal - Pinot Noir

and Lia Spinosa - Exultet Estates Winery

Farm location- South end of Prince Edward County, Milford Favourite food and wine pairing: “Exultet chardonnay with roasted poultry.”

Exultet Estates Winery in Prince Edward County focuses on the distinctness of their property. Their “Blessed” Chardonnay has won top honours at the Ontario Wine Awards and the Lieutenant Governor’s Award for Excellence in Ontario Wines. It seems fitting that the winery’s name is Exultet, coming from the Latin word “Exsultet”, meaning ‘to sing praise’. Such a unique winery name is suited to their unique location. Although the Spinosas had the idea of starting a winery in the Niagara Peninsula, the appeal of rural Prince Edward County was preferred. Gerry, having a background in science, and Lia, a teacher, had been living and working in the GTA and had relatively no farming experience before deciding to make the move.

commodity at the time, with approximately 30 cheese factories existing in the County. Operations continued until 1956 when the building was abandoned. In 2011, the Spinosas had the building historically designated and now the former cheese factory houses all of Exultet’s production.

Lia and Gerry Spinosa and children with Lieutenant Governor David Onley.

The Spinosas purchased a 200 acre farm in Milford, Ontario, once the home of a cheese factory, and are now growing a total of 10 acres of Chardonnay, Pinot Noir, Pinot Grigio and Vidal grapes in its place. The operation is mostly family run with the help of Gerry and Lia’s kids for tasks like cleaning, bottling and harvesting in addition to a couple of foreign seasonal workers. The original owners of the farm were the Striker family, United Empire Loyalists, who from the early 1800’s operated a dairy farm and apple orchard. In 1870 the milk from the cows was used for cheese production, a popular Page 18 Canadian Grapes to Wine • Fall 2014

With no previous experience in farming, learning to grow grapes in Prince Edward County has been an ongoing challenge for the Spinosas, but their willingness to experiment with different styles of winemaking continues to set them apart. An example of this would include a recent creation called “Mysterium” which is a white table wine made from red Pinot Noir grapes.

Being a small winery in a relatively new Ontario appellation (Prince Edward County only became a designated viticulture area in 2007), the Spinosas have to rely on what is in the bottle to sell their product. Gerry identifies his winemaking style as “working with the beauty that his property produces;” he views winemaking as a form of art over everything else. Noting that grapes grown on their property yield different flavours from those grown on lands just a half an hour away, they are pleased to see that once people try a wine from Prince Edward County they can truly appreciate the nuance and character that originates from that corner of Ontario. www.cdngrapes2wine.com

Grape Growing Meet Ontario Grape Grower Ryan Bosgoed “City life wasn’t for him” Farm Location: Turkey Point, Ontario Most grown varietal: Riesling Favourite food and wine pairing: Steak and Cabernet Franc Growing up on a farm that has been in the family for 3 generations means that Ryan Bosgoed knows the conditions that surround his land. Reminiscing about dirt-biking around the farm as a child, the Bosgoed Family Farm is the forefront to most of Ryan’s childhood memories. His parents and grandparents have been successful growing produce such as tomatoes, onions and cabbage. Recently taking over the farm, Ryan hopes to continue that success story with grape growing. In 2004, a dinner conversation between Ryan and his father John sparked the idea of trying to grow grapes on the land that has previously only grown vegetables. They decided it was worth a try, and Ryan planted 15 different varietals of grapes on a quarter acre of land. The experiment was to see which varietals grew best with the least management practices in the southern Ontario, Norfolk County climate. The result? Riesling, Pinot Noir and Cabernet Franc flourished in the area, and now a total of 5 and half acres of grapes are planted on the Bosgoed farm. This experiment gave Ryan the confidence to know he can grow quality grapes on his property, and use the conditions present in Ontario’s South Coast to his advantage.

from the farm which is reclaimed marshland, being located “in” a world “biosphere”. While other wineries in the area focus Ryan Bosgoed on different styles of wine, Ryan is keeping his philosophy simple, “(let) the characteristics of the wine speak for itself, and show off the unique qualities of Ontario’s South Coast land.” Besides growing grapes, Ryan is also active in associations, recently joining the Grape Growers of Ontario as a Board Director, as well as a Director with the Ontario South Coast Winery and Growers Association (OSCWGA). Ryan is committed to the goal of achieving Designated Viticulture Area status for Ontario’s South Coast, which he believes has great potential to grow some world-class Ontario wines because of the unique terroir of the area. As well as recently purchasing a sport bike, Ryan likes to spend his down time in winter sports such as hockey and snowboarding.

It was always in the back of Ryan’s mind that he would take over the family farm. To that end, he attended Niagara College’s Wine and Viticulture program and credits his professors who are from, and work in the industry. He tells current students, “Listen to what your professors are saying, you will use it!” Working for 3 years in the barrel cellar at Jackson-Triggs Winery in Niagaraon-the-Lake, Ryan was able to gain more practical experience within the industry, as well as experience how a large scale winery operation works. Ryan came to the realization that the love of nature and farming was “in his blood” saying that “city life wasn’t for him”. Ryan’s next goal was to bring the “winery culture” that he loved back to his home of Turkey Point. Currently Ryan and his wife Shantel along with their one and a half year old son live on the hundred acre family farm tending to both the vegetable crops and the now 5 year old vines in the vineyard. Everyone helps out where they can, including Ryan’s son who is always trying to see what everyone is doing. Both sets of parents are actively involved in the farm, with Ryan’s parents advising on the conditions of the land, and Shantel’s parents helping where they can. The combined post-secondary experiences of Ryan and Shantel are also being used to bring continued success to the Bosgoed Farm, (Shantel attained her BBA from Brock University). They are planning to open a winery in the coming years, calling it Inasphere. This unique name comes www.cdngrapes2wine.com

Canadian Grapes to Wine • Fall 2014 Page 19

Marketing Leeann Froese Leeann Froese is co-owner of an agency based in Vancouver, BC, Town Hall, which does strategic marketing and communications, with a specialty on wine, food and hospitality. She has worked to market and publicize wineries for the better part of two decades. Outside of work and wine, Leeann is a Cub Scout leader & Les Dames d’Escoffier member. She is also into birding, running & community. See more of Leeann’s work on townhallbrands.com or chat with the Town Hall team on Twitter and Instagram @townhallbrands or Facebook at facebook.com/townhallbrands.

Build Your BRand Socially Speaking When we talk about building your brand it seems only natural that we talk about being social: that is incorporating social media with your brand in a meaningful way. There has been already too much written and preached about social media, yet it seems that even so, I have still have winery clients asking me about social media and best how to use it. What I am going to evangelize here is that if you are looking to translate your brand across all touch points, social media needs to be part of your strategy.

WHICH NETWORK?

want to be in that bar, part of those conversations, and know what is being said about you and your brand? This is what social media is; it is people connecting and having conversations using different conversation networks. And there are a lot of conversations about wine. The more popular social networks (see sidebar: which network?) are Facebook, Twitter, Instagram, LinkedIn, YouTube and Google+. We could name many other social networks but again the point is that people are going to use the social networks to connect and talk about things that interest them, including wine and your brand. They’re going to talk about you even if you’re not there. You want to be there. To be clear: this is not a how-to article about how to use any of these networks as tools, but rather what you should do to approach them from a strategic point of view. I am not the person that believes social media is the only solution; rather it is one tool in your toolbox that is part of your integrated marketing plan. Social engagement is meant to complement your use of traditional PR and all that you do to advertise and market yourself, your product and your participation in events.

W hich network do you use? Especially if you don’t have time to learn or use them all? It’s not necessarily important to be on every one. As long as you pick one and do it well you can get in on conversations, but what’s used to by most of the wine industry is Facebook, Twitter, LinkedIn and Instagram.

Each of these social networks has a slightly different language for communicating, and while the message might be the same on each network, you do not necessarily say exactly the same thing the same way on each network. I like to share this example often: with only 140 characters to say what you have to say, Twitter is like a cocktail party: it’s very short conversations and dialogue (think water cooler) sharing the latest news and chatting about quick gossip. Facebook, in contrast, is like the family reunion: it’s where you can stay connected to your family, friends, and people from your past, and there’s a lot more room for dialogue and exchange of links, stories and photos. LinkedIn is like the board room: more of a professional network where you’re sharing best practices and information about yourself from a professional point of view. There’s less room for personality and dialogue and the language here reflects that. Instagram is like the street (or the great outdoors): only photos with captions are shared here, and the information shared is like being on the street corner and taking it all in. It’s about landscapes, pets, food and people, offering just a snapshot of the user’s life, and followers on your network just take it all in.

Page 20 Canadian Grapes to Wine • Fall 2014

Leeann takes a photo of clients to share across social networks. For the uninitiated, social media can seem foreign and intimidating. Let me illustrate with a hypothetical situation of a real life parallel of social media. There’s a new wine bar in town; it’s the hottest place for everybody to go, and anyone who is interested in wine goes hangs out here on a daily basis. Many conversations take place about what is happening at local and international wineries and everyone discusses the different wines that they like. It’s a very wine-engaged crowd all talking about wine. Wouldn’t you be curious to hear if someone thought something great about your wines or worse, if they think your wines suck? Wouldn’t you want a chance to engage and learn more? However, whether you are there or not, this bar is open, these conversations are taking place, and they might include you whether you like it or not. Don’t you

Next you need to determine which networks make best sense for you. Decide: HOW do you want to present the information that your winery has to offer? Then you have to decide WHO is going to be the one to oversee the networks. One of the most important things that you need to know about using social networks to help talk about your brand and put your best foot forward on behalf of your brand is: it takes a person. At the end of the day these social media accounts have real people operating them: humans with heartbeats and personalities. Using these networks is like that wine bar conversation. It’s about honest engagement, meaning not using a one-way broadcast method of communication (the old way) but rather a one-to-one dialogue, where a real human is there to respond and reply (today’s way). You need to decide if you are going to be that person; to get trained on how to best use these networks, or if you need trained staff who can implement social media correctly. Maybe you are too small a business to have an employee do it, and you are either too busy or honestly not interested enough to do it yourself. Alternatively, you can outsource your social media to a skilled provider, and many companies or consultants can be contracted. Related to the above, you need to fund social as part of your marketing plan. The costs of the networks is incidental (until you get into advertising on them) but it’s important to note that the person who will run your social should not be a volunteer and the cost of this person is the cost of a real person’s time. It’s important for you put a line item in your marketing budget just like you would for advertising or signage or events, which will cover your social media as well. If you are set up on social networks, or once you are, say hello on my Facebook page, or tag me with a Tweet or on Instagram to let me know you read this. www.cdngrapes2wine.com

Marketing Judy Bishop Judy Bishop is Chief Marketing Officer at BlackSquare Inc., an innovator in direct-to-consumer e-commerce for the global wine industry, where she applies her +20 years’ strategic marketing and business development experience to help winery clients on 4 continents power their online sales channel. Judy is equally at home conducting a corporate strategy session, touring a vineyard, or doing a photo shoot. Email: judy@blacksquare.ca

Top 10 Tips For Successful wine clubs You produce great wine, your cellar door is popular, and your wines sell through the usual channels. You want to sell wine to consumers online and are researching wine clubs. Smart move, that: wine ecommerce is big business and growing fast. Why not raise your winery’s brand value across all retail channels and pump serious profit into your coffers? But the mountain of information on ecommerce technology and best practices can be daunting for any winery, large or small. Consumers have been “trained” by other retail sectors to expect ecommerce that is fast, secure, easy to use, and suits their shopping preferences. It is a lot to consider. Wine ecommerce is rarely executed well, partly due to poor vendor service to the wine industry. Wine ecommerce is complex, with many potential wrong choices that can become expensive headaches without yielding return or efficiencies. Happily, the upside is that wineries can cherry-pick best business practices and technology from other retail sectors. Though our business is primarily in Australia, our perspective is drawn from active wine ecommerce on four continents. Starting with a clean technology slate and deep wine industry knowledge, we built simplified, streamlined ways to fulfill the most valuable aspects of direct-to-consumer (DTC) wine ecommerce. We have found these top 10 ecommerce success tips to be common to wineries globally, and are sharing them. 1. Lavish your best customers with your best treatment. Wine ecommerce is never a ‘shopping cart’, but always about relationship-based commerce. Wine is a high-touch sale, so deep customer relationships are essential for wineries. A recurring-purchase wine club is a loyalty program, a deal struck with your VIPs to commit to recurring purchases of your wines in exchange for privileged access to such things as library releases, special events, and small-lot wines. Clubs deliver members authentic interaction that is only possible via strong attachment to your brand. Though casual customers on your email lists are valuable, always reserve top benefits to committed wine club members – keep them special. Treat VIPs like royalty; it will translate into a profitable line of business. Wine club members generate up to 16 times more annual revenue than ad hoc shoppers.

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and buy more wine! The best wine clubs invest in great design; tell authentic stories regularly; give ample choice and self-serve capability; and regularly contact members. 5. Successful ecommerce starts with customer experiences at the cellar door. Up to 70% of wine club members enroll at the cellar door; it is clearly the top success factor. Cellar door staff love incentives to promote the wine club, and enjoy this kind of visitor interaction. The formula is simple: personal cellar door introduction to the wine club with step-bystep help available translates into a positive brand experience and sales. 6. Let the four kinds of wine ecommerce power your profits. Wine ecommerce is different from other forms of online sales, so capitalize on those differences to profitably market your wine. The most common type, ad hoc ecommerce, is where you passively list your wines online and hope customers find, select and buy them. Recurring-purchase clubs are the top way to sell wine online, delivering 75% to 90% of your wine ecommerce revenue, and serious profits, too. Wine club customers typically remain at least 24 months. Targeted ecommerce reaches past customers with powerful email campaigns and promotions they appreciate. Gifting generates profit and doubles your customer base by helping happy customers share your wines as gifts to mates and colleagues. The best wine clubs know the different types of ecommerce and refine their marketing accordingly. 7. Beware of ‘shopping carts’ or ‘all-in-one’ ecommerce solutions. Unfortunately, ecommerce vendors typically offer old technology that’s inflexible and unresponsive to the special needs of the wine industry. Use specialized software to automate the technical aspects of running a wine club, eliminating the stress of repetitive tasks. Employing an “all in one” system or basic ‘shopping cart’ cannot deliver the same results as specialized software with open interface. Choose your ecommerce solution separately from other business software, and avoid stressing about data integration until the need is clear. 8. Your customers vary widely; how you reach them should, too. Consumer behavior varies wildly. While some people live on their smartphones, others loathe using computers. Employ social media to deepen relationships, and build your community, but don’t expect to sell wine that way. The best wine clubs know that real engagement with wine club members creates a powerful community; encourage wine club members to socialize online and offline, share experiences, and communicate your brand.

2. Wine clubs are about value, not about price. You want to sell wine to consumers online Avoid a ‘discount’ mentality at all costs! Always compete on and are researching wine clubs. customer experience, give customers reasons beyond price to Smart move, that: wine ecommerce is big love your brand. The best wine clubs pick a consistent shipping schedule; always have consistent package pricing; tell customers business and growing fast. the price before they buy; send wine club packs in smaller but more frequent shipments; offer rich self-serve options; clearly 9. Serious profit flows from ecommerce that is scalable and communicate shipment status; reduce club turnover by capping sustainable. membership. They also tie shipping costs into wine club packs, and All ecommerce must scale sustainably to be successful; for wineries it must happen without adding only show bundled, all-included pricing to reduce shopping cart drop-off. cost, staff, stress or complexity. Volume is the big challenge for a successful club. Fulfillment is 3. Fully harness the power of the Internet. All wineries are wise to become technology-enabled business using real-time cloud computing, usually the hardest element, and poor customer experience can be disastrous. That is why wine club or software-as-a-service (SaaS). It delivers best-of-breed applications that are constantly updated, fulfillment and shipment must be automated, with a focus on efficiency and easy communication effectively ‘future proofing’ your business. The days of running wine clubs on a spreadsheet are with customers. The best wine clubs designate someone to ‘own’ their ecommerce channel, using over. This is especially relevant for wine ecommerce, where innovations enable constant focus on proven best practices. They use simple, mobile-enabled, admin dashboards for non-technical cellar door staff and management in the field. the front-end customer experience while seamlessly serving back-end administration and systems.

4. Focus all your marketing on a brilliant customer experience. Your brand’s authenticity is an unbeatable competitive advantage. Maximize and promote it with marketing campaigns. No in-house capability? Hire a brand expert – it is worth the modest investment. Constantly seek new, fresh ways to engage and build loyalty. Drive return engagement by making it simple for customers to learn, rate, share food-pairing ideas, interact with social media www.cdngrapes2wine.com

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Make maximum use of mobile commerce. One in three (33%) wine shoppers now buys via smartphone or tablet device, up from 25% in 2012. Mobile is red hot! The best wine clubs use Internet-enabled metrics to gain insights and tweak customer interaction and marketing.

10. Don’t wait for the perfect time: start now, fine-tune. Technology now makes it easy and inexpensive to quickly start a recurring wine club and deliver a VIP experience. Resist the temptation to ‘wait and see’. Successful wine clubs build their membership gradually, molding this channel to fit their winery’s unique needs.

There’s no magic to wine ecommerce success: Consistently cater to loyal customers, make them feel appreciated and thus, deepen engagement and grow sales. After all, aren’t they the reason you make great wine? Reprinted from Australia’s Wine business Magazine April, 2014 Canadian Grapes to Wine • Fall 2014 Page 21

Events Industry Professionals to Foster, Celebrate and Inspire Women’s Leadership in Wine

women of the vine Women of the Vine’ Global Symposium is The First of its Kind Devoted to Advancing Women in the Wine Industry. Tickets go on Sale - November 2014 This conference will be held March 13 – 15, 2015 at The Meritage Resort and Spa, Napa, CA. The two-day symposium will feature diverse seminars and panel discussions focused on the personal, family and business dynamics of today’s women in wine. Educational programs include such topics as life/work balance, being confident in a male-dominated industry, honing your leadership skills, communication tactics to be seen and heard, negotiation tips, succession plans, and success stories/case studies by women in wine. Networking events and a Grand Tasting Gala Event also

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“In our own experience, the challenge is not only to retain the women we have working for our own company but also to ensure that they thrive while concurrently fostering the next generation of talent. The ‘Women of the Vine’ Global Symposium will be an outstanding opportunity to discuss these challenges and companion opportunities with our peers throughout the industry,” Barnes said. Expected attendees include those involved with wine growing, wine making, buying, distributing, marketing, sales, educators, sommeliers and wine media. According to the American Association of Wine Economists, only 9.8 percent of winemakers in California are women. Approximately 10 percent of viticulturists and winemakers employed in the Australian Wine Industry are women and out of 219 professionals who have earned the title Master Sommelier, 21 are women. “Even though women are making great strides in the wine business, there is a shortage of networking and mentoring opportunities to ensure that women will continue to advance in leadership roles in the future,” said Deborah Brenner, Author and Founder, Women of the Vine, LLC. “I am honored to organize this annual event to help women further their careers,” Brenner said. Held during Women’s History Month (March) the symposium celebrates the achievements and advancement of women in the wine industry spanning the globe. For those seeking to hone their business skills, gather fresh ideas and network with other like-minded women in the wine industry, this is a must-attend annual event. For more information please visit: www. womenofthevine.com Consumers are invited to join the ‘Women of the Vine’ Grand Tasting Gala sponsored by MORE Magazine. The Grand Tasting will unite more than 30 of the industry’s finest women winemakers and proprietors. The event will take place on Saturday, March 14, 2015 from 5:00 to 7:30 p.m. PST and tickets can be purchased individually or as part of the symposium package.

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Events ‘Man in Motion’ Rick Hansen to speak at Grape Growers of Ontario’s 31st Annual Celebrity Luncheon The Grape Growers of Ontario, in partnership with Meridian Credit Union, Friends of the Greenbelt Foundation, and the Niagara Grape and Wine Festival, are pleased to announce that Rick Hansen will be the speaker at the 31st Annual Celebrity Luncheon which kicks off the 63rd Annual Niagara Grape and Wine Festival. The event will take place at Club Roma in St. Catharines on Wednesday, September 17th at 11:30 a.m. “Rick Hansen is a Canadian dedicated to making a difference, and the Grape Growers of Ontario are thrilled to have him speaking at this year’s Celebrity Luncheon,” says Bill George, Chair of the Grape Growers of Ontario. “Rick’s Man in Motion World tour was inspiring and proved that there is no obstacle that cannot be overcome, not unlike Ontario’s grape growers,” says Debbie Zimmerman, CEO of the Grape Growers of Ontario. Currently the only man in history to have successfully circumvented the globe in a wheelchair, Rick Hansen is internationally revered and respected for raising the awareness of the potential of people with disabilities. The Rick Hansen Foundation has generated more than $280 million for spinal cord injury related programs and initiatives. Rick is a mentor who is committed to working with young people to support their development and encourage them to be the best that they can be. With the courage to try, anything is possible. Rick has received the Companion Order of Canada, and the Order of British Columbia; initiated National Access Awareness Week in Canada; was inducted into Canada’s Walk of Fame and Canada’s Sports Hall of Fame; is honourary chair for a number of provincial and national advisory councils on disabilities; and holds 14 honourary degrees from universities worldwide. “Meridian is again very pleased to support the Grape Growers of Ontario in the presentation of the annual Celebrity luncheon. This year’s speaker Rick Hansen exemplifies the ability of the human spirit to rise up to meet challenges and succeed. His tireless efforts working for the betterment of our community is remarkable. We consider it an honour to be associated with both Mr. Hansen and the GGO.” Ken Janzen, Meridian’s Senior Director and Branch Manager. “Once again, the Friends of the Greenbelt Foundation is delighted to support the Grape Growers of Ontario and their annual luncheon showcasing the bounty of Ontario’s Greenbelt,” said Burkhard Mausberg, CEO, and Friends of the Greenbelt Foundation. “The luncheon highlights both the variety of delicious wine available in Niagara and the diversity of local food found in the Greenbelt. To top it all off, we get to hear from the Man in Motion, Rick Hansen--making it an event full of inspiring words, food, and of course, wine.” “For 63 years the Niagara Grape and Wine Festival have honoured the excellence of the Niagara Grape Growers. The Grape Growers of Ontario are a founding partner of the Niagara Grape and Wine Festival and our Board of Directors values their strong support of our three annual Festivals. The Annual Luncheon has become a highly anticipated event that marks the beginning of another harvest celebration. We look forward to the inspired words of Rick Hansen as he provides insight into his role as a leader, an athlete and his advocacy to create a barrier-free world.” Kimberly Hundertmark, Executive Director, Niagara Grape and Wine Festival. Online ticket purchases can be made at www.niagarawinefestival.com. Ticket order forms are available at www.grapegrowersofontario.com or by calling the office at (905) 688-0990. The Grape Growers of Ontario represents over 500 active growers on 17,000 acres in three viticulture areas (Niagara Peninsula, Lake Erie North Shore, and Prince Edward County). We are the advocate of all processing grape growers in the province working to ensure the market for Ontario grapes and wines expands domestically and internationally. For more information contact: Debbie Zimmerman, CEO, Grape Growers of Ontario at (905) 401-2471 www.cdngrapes2wine.com

Canadian Grapes to Wine • Fall 2014 Page 23

Awards National Wine Awards of canada The National Wine Awards of Canada (NWAC) held annually in June is only open to wines grown and produced in Canada. The goal of ‘The Nationals’ is to expose Canadian wine drinkers to the best in Canadian wines. There is no restriction on price, leaving each winery the opportunity to compete with and against the best wines in the country. More importantly, as barriers to ship wines across the country come down, the combination of winning recognition at The Nationals and WineAlign’s ability to display the results alongside your key retail outlets, from the winery direct to across the country, makes it the only competition with enduring post competition sales opportunities. The Results are in! Earlier this summer nineteen judges holed up in the Penticton Lakeside Resort in the heart of British Columbia wine country to taste 1,335 wines from 209 wineries from across the country and after a week of tasting and re-tasting the best of the 2014 have been announced: 1. Peller Estates Winery, Ontario Performance Score: 6,357.63 Wines Submitted: 20 Platinum: 1, Gold: 4, Silver: 6, Bronze: 2 2. Mission Hill Family Estate Winery, British Columbia Performance Score: 6,344.56 Wines Submitted: 17 Platinum: 1, Gold: 4, Silver: 3, Bronze: 1 3. Nk’Mip Cellars, British Columbia Performance Score: 5,502.64 Wines Submitted: 14 Platinum: 1, Gold: 3, Silver: 5, Bronze: 5

4. Jackson-Triggs Niagara Estate, Ontario Performance Score: 5,435.06 Wines Submitted: 12 Gold: 4, Silver: 4, Bronze: 1 5. Tawse Winery, Ontario Performance Score: 4,603.01 Wines Submitted: 35 Platinum: 1, Gold: 2, Silver: 15, Bronze: 8 6. Quails’s Gate Estate Winery, British Columbia Performance Score: 4,597.79 Wines Submitted: 8 Platinum: 1, Gold: 2, Silver: 2, Bronze: 2 7. Norman Hardie Winery, Ontario Performance Score: 4,363.06 Wines Submitted: 7 Platinum: 1, Gold: 2, Silver: 1, Bronze: 1

all canadian wine championsHips Trophy, Best Red Wine of the Year ROSEWOOD ESTATES WINERY, ON 2012 Lock, Stock & Barrel Trophy, Best White Wine of the Year DESERT HILLS ESTATE WINERY, BC 2013 Gewürztraminer Trophy, Best Dessert Wine of the Year VIGNOBLE DU MARATHONIEN, QC 2012 Vendange Tardive Trophy, Best Sparkling Wine of the Year SUMMERHILL PYRAMID WINERY, BC Cipes Brut Trophy, Best Fruit Wine of the Year KING’S COURT ESTATE WINERY, ON 2011 Iced Apple For a complete list of all Canadian Medals Of Merit Winners please go to: http://canadianwinetrail.com/cwt/all-canadian-wine-championships-winners-2014/

8. Road 13 Vineyards, British Columbia Performance Score: 3,733.57 Wines Submitted: 25 Platinum: 1, Gold: 1, Silver: 7, Bronze: 4 9. Stag’s Hollow Winery and Vineyard, British Columbia Performance Score: 3,726.99 Wines Submitted: 12 Gold: 2, Silver: 6, Bronze: 2 10. Lailey Vineyard, Ontario Performance Score: 3,724.77 Wines Submitted: 16 Gold: 2, Silver: 5, Bronze: 1 11. Lake Breeze Vineyards, British Columbia Performance Score: 3,710.17 Wines Submitted: 13 Gold: 2, Silver: 3, Bronze: 4 12. Inniskillin Niagara Estate, Ontario Performance Score: 3,707.52 Wines Submitted: 20 Gold: 2, Silver: 6, Bronze: 5 13. Magnotta Winery, Ontario Performance Score: 3,694.08 Wines Submitted: 24 Gold: 2, Silver: 4, Bronze: 2 14. Redstone Winery, Ontario Performance Score: 3,693.08 Wines Submitted: 16 Gold: 2, Silver: 5, Bronze: 4 15. Chateau des Charmes, Ontario Performance: 3,467.01 Wines Submitted: 14 Gold: 2, Silver: 2, Bronze: 1 16. St. Hubertus & Oak Bay Estate Winery, British Columbia Performance Score: 3,256.09 Wines Submitted: 7 Platinum: 1, Gold: 1, Silver: 1, Bronze: 2

.Page 24 Canadian Grapes to Wine • Fall 2014

17. Thornhaven Estates Winery, British Columbia Performance Score: 3,253.86 Wines Submitted: 7 Platinum: 1, Gold: 1, Silver: 1, Bronze: 2 18. Orofino Vineyards, British Columbia Performance Score: 3,240.97 Wines Submitted: 8 Platinum: 1, Gold: 1, Silver: 1, Bronze: 2 19. Hidden Bench Vineyards and Winery, Ontario Performance Score: 2,847.12 Wines Submitted: 11 Gold: 1, Silver: 4, Bronze: 3 20. Rosewood Estates Winery, Ontario Performance Score: 2,837.81 Wines Submitted: 12 Gold: 1, Silver: 4, Bronze: 4 21. Church & State Wines, British Columbia Performance Score: 2,836.64 Wines Submitted: 12 Gold: 1, Silver: 5, Bronze: 4 22. CedarCreek Estate Winery, British Columbia Performance Score: 2,830.44 Wines Submitted: 14 Gold: 1, Silver: 4, Bronze: 5 23. Thirty Bench Wine Makers, Ontario Performance Score: 2,829.34 Wines Submitted: 11 Gold: 1, Silver: 4, Bronze: 2 24. JoieFarm, British Columbia Performance Score: 2,826.04 Wines Submitted: 10 Gold: 1, Silver: 4, Bronze: 2 25. Arrowleaf Cellars, British Columbia Performance Score: 2,824.63 Wines Submitted: 13 Gold: 1, Silver: 5, Bronze: 2 (The Performance Score is a calculation based on the total value of the top five medals awarded to the winery. A Platinum receives the highest number of points, followed by golds, followed by silver and bronze.) www.cdngrapes2wine.com

Awards Winners announced for the 2014 Lieutenant Governor’s

Awards for Excellence IN British Columbia Wines Twelve wines were chosen for the 2014 Lieutenant Governor’s Awards for Excellence in British Columbia Wines, the Honourable Judith Guichon, Lieutenant Governor of British Columbia, made the announcement in June. “The outstanding quality of wines in British Columbia impresses our wine judges each year and makes the selection increasingly difficult,” said Guichon. “This year’s winners represent the best of the exceptional wines from our province.” This year was the largest competition in the 12-year history of the awards, with 436 wines submitted from 119 wineries across the province. The Lieutenant Governor visited the winning The winners are: wineries from July 24th to 26th to present the • 8th Generation Vineyard Awards. Members of the Consular Corps of Riesling 2012 British Columbia accompanied her when she Winemaker Bernd Schales made the presentations to gain knowledge of British Columbia’s renowned wine industry. • Bonamici Cellars Merlot Cabernet Franc 2012 All wineries in British Columbia were invited to Winemaker Philip Soo submit their wines for blind judging by a panel • Fort Berens Estate Winery of wine industry professionals. Wines submitted Riesling 2012 had to be from 100% British Columbian grown Winemaker James Cambridge grapes and produced in province to be eligible. Consulting winemaker Tom Di Bello All entries were judged blindly by a panel of • Hester Creek Estate Winery B.C. wine industry professionals. This year’s Block 2 Reserve Merlot 2011 judges were Sid Cross, Julianna Hayes, David Winemaker Rob Summers Hopgood, Tim Pawsey, Treve Ring, John • Howling Bluff Estate Winery Schreiner and Troy Townsin. All 436 wines were Summa Quies Vineyard Sauvignon Blanc Sémillon 2013 tasted in the first round. Once all wines were Winemaker Luke Smith judged, 55 were put through to the final round. • Kraze Legz Vineyard & Winery At the end of the judging, 12 were chosen to Skaha Vineyard Unoaked Chardonnay 2013 win the 2014 Awards. Winemakers Gerry and Sue Thygesen • Quails’ Gate Winery • Laughing Stock Vineyards Stewart Family Reserve Chardonnay 2012 Portfolio 2011 Winemaker Grant Stanley Winemaker David Enns • Ruby Blues Winery • Okanagan Crush Pad Winery Viognier 2013 Haywire Canyonview Pinot Noir 2011 Winemaker Lyndsay O’ Rourke Winemakers Michael Bartier and Matt Dumayne • Wayne Gretzky Okanagan • Pentâge Winery The Great Red 2011 Syrah Reserve 2010 Winemaker Stephanie Stanley Winemaker Paul Gardner

Lieutenant Governor Judith Guichon raises a glass with Rolf de Bruin and Heleen Pannekoek of Fort Berens Winery. Fort Berens’ 2012 Riesling won a Lieutenant Governor’s Award for Excellence this year.

The Lieutenant Governor presents an Award for Excellence in BC Wines to Gerry and Sue Thygesen for Kraze Legz 2013 Skaha Vineyard Unoaked Chardonnay.

8th Generation Vineyards displays their 2014 Lieutenant Governor’s Award for Excellence during the presentation ceremony at the vineyard.

FOUR CANADIAN RESTAURANTS ARE GIVEN THREE STAR’S ON WORLD’S BEST WINE LIST AWARDS London (July 8, 2014) – Four Canadian restaurants have received the highest benchmark for many years to come. They are the first awards to acknowledge the importance of a good wine selection, as distinct from a massive compilation, in the modern dining experience all over the world. “As we were judging, we had in mind the wise words of our fellow judge Francis The prestigious UK-based wine publication has given a total of three Toronto restaurants the top Percival about the difference between ‘a great wine list and a mere list with great wines on it’. We rating of three stars, ahead of other leading cities including Berlin (2) and Vienna (2). Only 200 were hugely impressed by the range of high-quality entries and had a pleasantly difficult time three star ratings have been awarded to restaurants globally. settling on our very deserving winners. accolade possible in The World of Fine Wine’s inaugural ‘World’s Best Wine Lists 2014.

The World of Fine Wine judging panel contained some of the world’s leading wine critics We look forward to repeating the process next year and to the awards becoming an invaluable and masters of wine including: Andrew Jefford, Gerard Basset MW MS, Elin McCoy and Tom resource, not only for readers of The World of Fine Wine, but for wine lovers everywhere.” Next Stevenson. They helped to assess well over 4000 wine lists from restaurants around the world year the World’s Best Wine Lists award ceremony will take place at a glamorous London location. before coming up with the final 750 worth one, two, or three stars at a judging session held at Lutyens Restaurant in London. Only 224 wine lists were recognized in the top three-star category. Canada’s three star winners were: Canoe, Harbour Sixty Steakhouse, Opus Restaurant on Prince Process & Product Development \ Equipment Sales Arthur and Banffshire Club. All are based in the city of Toronto, apart from Banffshire Club, Alcoholic & Non Alcoholic Beverage Industry Ivan D. Lessner which is located in Alberta. Other restaurateurs honored with 3 stars for their wine lists included NEW! EMD Lab Tests F.MERKEL: - Rapid S02 & T/A, Bentotest Gordon Ramsay for his eponymous London restaurant. On receiving the award, the delighted FLOTTWEG: - Belt Presses ERBSLÖH: - Enzymes, Acidex, Exacid, Fining, celebrity chef said: “It’s just fantastic news that the wine list at Restaurant Gordon Ramsay - Oenoferm Yeasts, Treatment Agents - CelluFluxx: Biodegradable Filtermedia has been recognised in this way. The entire team there work tirelessly to deliver the ultimate - Pro Vino Malolactic Cultures 1164 Lee Street, EMD: - Analytical Kits & Equipment White Rock, experience in wine, food and service for all to enjoy. I’m very proud of all of them.” According to TRUST INT.: - Quality Hungarian Oak Barriques, B.C. V4B 4P4 Canada Hungarian Oak Chips Phone: 604-538-2713 E-CAVIS: - Cremanti Multiencapsulated Champagne Yeasts The World of Fine Wine’s editor Neil Beckett, the awards are in important development for the Fax: 604.538.4517 - Bottling & Packaging Equipment Warehouse Direct: wine industry: “We hope that they offer a refreshing new approach and will be seen as the industry 604-214-6437 www.idlconsulting.com www.cdngrapes2wine.com

Canadian Grapes to Wine • Fall 2014 Page 25

Cool Stuff Drop Every Thing - The new Blundstone “UTE” 165 CSA Met Guard is Here Canadians are hard working by nature, so it comes as no surprise that

we want a CSA Met Guard safety boot that will work as hard as we do. Blundstone Footwear, known for delivering lasting comfort, style and durability, has created that boot with the new “UTE” 165 CSA Met Guard. The “UTE” 165 CSA Met Guard is Blundstone Footwear’s toughest, no-nonsense boot yet, taking safety over the top and offering protection at the highest level. The new boot offers the same easy pull-on, kickoff function as your regular Blundstones, but also features flexible and comfortable Poron XRD foot-top met guards, extreme comfort, steel toes, protected side elastics with leather covers, bullet-proof kevlar stitching and shock-proof soles.

“People working in many different sectors have to perform at a high level day in and day out — now they can do it in style and comfort, with our new Ute Met Guard” said Ian Heaps of Blundstone Footwear. “This new style provides the durability of Blundstone, as well as all-day comfort, even on concrete.” You shouldn’t have to give up comfort when it comes to making sure your feet are protected at work. Blundstone’s “UTE” 165 CSA Met Guard boots deliver everything you need for comfort and safety on the job. In addition to shielding you from on-the-job hazards, these boots also protect you against the weather, which makes them ideally suited to handle Canada’s rugged climate.

SAVINO WINE

Blundstone Footwear has maintained a dedication to quality, integrity and authenticity in its products for generations. So drop every thing and pick up your pair of Blundstones today! About Blundstone Footwear:

Blundstone Footwear is celebrating their 20th anniversary in Canada where they are available at Australian Boot Company and other retailers, and are now sold at more than 600 locations across Canada. Tin Shack is the exclusive Canadian distributor of Blundstone, located in Collingwood, Ontario. Founded in Vancouver in 1998, Tin Shack distributes footwear made by Blundstone, Pty, of Tasmania, Australia. Founded in 1870, Blundstone is Australia’s leading manufacturer of quality footwear and remains a family-owned company to this day. Blundstones have been toughing it out for no-nonsense, go-anywhere, do-anything types seeking comfort, durability and rugged style. Boasting pull-on comfort, Blundstones are all-weather, lightweight, durable and no-gimmick footwear. For more information, visit www.blundstone.ca.

DECANTER

Fifteen years ago, Scott Tavenner opened his refrigerator to find a glass of wine sitting on the top shelf. Asking his wife about the glass, she responded, “I wanted to save the wine for later.” This simple statement sparked a journey, which led him to try almost every wine preservation system available. Years of disappointment with available products led Scott to develop an innovative solution to this common problem – Savino.

Savino is an easy-to-use wine preservation system that allows you to enjoy your favorite wine anytime without waiting for a special occasion. The decanter preserves and keeps your wine fresh for up to a week so you can enjoy Tuesday’s wine on Saturday. Unlike other wine preservation solutions on the market, Savino creates a new, elegant environment designed to preserve

and serve wine. It centers its experience on a product that is effective, elegant and easyto-use.

To use you pour the contents of your open wine bottle into the decanter. Insert the float to minimize oxygen contact with the wine. Insert the lid to help prevent spills. To serve from Savino, remove the lid and pour the wine with the float still in the decanter. www.savinowine.com

GrapeVine jewelry

One-Of-A-Kind Handmade Jewelry Made From The Beloved Grapevine! For Men & Women Made in Naramata, BC & Vancouver, BC And can be custom designed from your own vines!

“The Vine” collection is a one-of-a-kind series of jewelry pieces; each handcrafted, inspired by and made using clippings from Okanagan Grape Vines. The curly grapevine tendrils, which cling to twigs and support wires aiding the grapevine in growing upwards, are here adapted to cling to Page 26 Canadian Grapes to Wine • Fall 2014

a chain or around a setting to create this unique series. Being as complex in form as they naturally are, recreating these tendrils in metal as jewelry means no two pieces will be alike, and they cannot be reproduced. In appreciation and admiration for these incredible natural creations...and of all things the vine brings us......enjoy! Phone (604) 761-0120 Email kyzadesigns@mailbox.as Website: www.kyzadesigns.com or www.facebook.com/pages/Wine-Jewellery www.cdngrapes2wine.com

Cool Stuff

MOONSHINE - AMERICA’S INFAMOUS LIQUOR Hooch. White lightning. White whiskey. Mountain dew. Moonshine goes by many names. So what is it, really? Technically speaking, “moonshine” refers to untaxed liquor made in an unlicensed still. In the United States, it’s typically corn that’s used to make the clear, un aged beverage, and it’s the mountain people of the American South who are most closely associated with the image of making and selling backwoods booze at night—by the light of the moon—to avoid detection by law enforcement. In Moonshine: A Cultural History of America’s Infamous Liquor, writer Jaime Joyce explores America’s centuries-old relationship with moonshine through fact, folklore, and fiction. From the country’s early adoption of Scottish and Irish home distilling techniques and traditions to the Whiskey Rebellion of the late 1700s to a comparison of the moonshine industry pre and post-Prohibition, plus a look at modern-day craft distilling, Joyce examines the historical context that gave rise to moonshining in America and explores its continued appeal. But even more fascinating is Joyce’s entertaining and eye-opening analysis of moonshine’s widespread effect on U.S. pop culture: she illuminates the fact that moonshine runners were NASCAR’s first marquee drivers; explores the status of white whiskey as the unspoken star of countless Hollywood film and television productions, including The

Dukes of Hazzard, Thunder Road, and Gator; and the numerous songs inspired by making ’shine from such folk and country artists as Joan Baez, Bob Dylan, Alan Jackson, and Dolly Parton. So while we can’t condone making your own illegal liquor, reading Moonshine will give you a new perspective on the profound implications that underground moonshine-making has had on life in America. ABOUT THE AUTHOR Jaime Joyce’s work has appeared in Saveur, Edible Manhattan, Edible Brooklyn, and the online edition of The Atlantic as well as on the Big Roundtable, a website for long-form narrative nonfiction. She earned master’s degrees at Bank Street College of Education and Columbia University’s Graduate School of Journalism, where she was awarded the Lynton Book Writing Fellowship. She is an editor at Time Inc. http://jaimejoyce.com • @jaime_joyce

Alicat Releases Rechargeable Portable Mass Flow Meters New handheld flow meters deliver highest accuracy for flow verification and validation in the field. Alicat Scientific, Inc., released its new rechargeable portable gas mass flow meters in July. With 18 hours of continuous operation on a single charge and +/-0.8% of reading accuracy, these handheld meters bring laboratory-class accuracy to field flow verification and validation applications in the environmental, manufacturing and metrology industries.

Alicat’s mass flow meters feature fast 5-ms meter speeds and live readouts of mass and volumetric flow rates, pressure and temperature. Rapid and easy access to this information makes Alicat’s rechargeable meters ideal for validation of environmental analyzers, verification of flow rates in industrial manufacturing and field flow calibration as a secondary transfer standard. All Alicat instruments are backed by NIST-traceable calibration, comprehensive technical support and a lifetime warranty.

Alicat’s rechargeable portable flow meters provide fast flow validation with multiparameter measurement, wide operating ranges and multiple true gas calibrations. With no moving parts and no warm-up time requirement, they are indispensable for field technicians who require fast and durable flow measurement.

To learn more about Alicat’s new rechargeable mass flow meters, visit www.alicat. com/portable or call +1 888 290-6060.

MORI VINES INC. - Cabernet Franc - Cabernet Sauvignon - Chardonnay - Gamay - Gewürztraminer - Malbec - Merlot

- Muscat Ottonel - Orange Muscat - Pinot Blanc - Pinot Noir - Riesling - Sauvignon Blanc - Sovereign Coronation

- Seyval Blanc - Shiraz- Syrah - Vidal - Viognier - Zinfandel - Zweigelt

NOTE: Many different clones are available. Rootstocks available are Riparia, 101-14, SO4 and 3309 Contact: MORI VINES INC. R.R. #3, 1912 Concession 4, Niagara-on-the-Lake, Ontario LOS 1JO Phone: (905) 468-0822 Fax: (905) 468-0344 e-mail: morivines@sympatico.ca www.morivines.com

www.cdngrapes2wine.com

Canadian Grapes to Wine • Fall 2014 Page 27

Your Options, Our Promise. As North America’s largest wine bottle distributor, TricorBraun WinePak shares your commitment, dedication and passion for winemaking. We are proud to provide the highest quality glass sourced from the entire global marketplace to help package your wines beautifully– but that’s just the beginning. From decorating services to warehousing, we are dedicated to fulfilling our promises of quality, efficiency, ingenuity and sustainability in everything we do. We’re here to help. What can we do for you?

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