Orchard & Vine Magazine Summer 2015 by Before & After Media

New Fraser Valley Winery Diversification at Davison Blueberry Research Wine Industry Comings & Goings

Summer 2015 $6.95

Display Until June 15, 2015 Publication Mail Agreement No. 40838008 www.orchardandvine.net

Photo by Gary Symons

The Golden Mile, BC's new appellation. Page 46.

Regulars 6 Publisher's View – Lisa Olson 8 Calendar 10 News & Events 33 Wanderings – Sandra Oldfield 35 The Wild Things – Margaret Holm 37 Legal Libations – Denese Espeut-Post 39 MacIntosh on Money – Peter MacIntosh 41 Seeds of Growth – Fred Steele 43 People Talk – Barbara Ashton 45 Word on Wine – Miles Prodan 4

Summer 2015

For Davison Orchards Country Village variety is the secret to

Features 21 Fraser Valley's Singletree Winery 24 Nitrogen, the Future of Blueberries 27 D avison Orchards Country Village Variety the Key to Successful Farm Marketing 31 Wine Law Reform Revisited 46 Golden Mile Bench â&#x20AC;&#x201C; BC's New Appellation

Photo courtesy of Davison Orchards

Photo by Danil Roudenko | Dreamstime.com

Cover photo of Asja and Jonathan Shewchuk enjoying a taste of Pear Brandy from Okanagan Spirits at the Kelowna Farmers' Market. Photo by Cindy (Sam) Kaufenberg

success. Page 27.

Buying wine in the supermarket, how are the new laws affecting sales. Page 45.

Summer 2015

 PUBLISHER’S VIEW | LISA OLSON

Profitable Summer Fun

Vol. 56, No 3 Summer 2015

ummer is soon upon us with June strawberries, early vegetable crops and other fruit crops making their appearance. Farmers’ markets have begun, new summer staff are in training or being hired and wineries are enjoying the influx of visitors, some holding their first outdoor concerts and so it begins; the optimism and hopefulness of a fun and profitable summer.

Established in 1959

Inside this issue, you’ll see how one business brought sustainability and diversification into their family farm to provide a great experience to other families in the Vernon area. Davison Orchards is a tourism destination, complete with a train, a tasting apple bar showcasing 25 varieties, a fresh and multi-variety apple juice, jams, jellies and lots of other family activities. Check them out as this article may stimulate a few new ideas for your business.

Barbara Ashton, Michael Botner,

Take a moment to read the advice from our featured columnists; it’s so cool to learn something new! This time around, I learned much more about inventory from Peter MacIntosh, even though my inventory consists of yearly back issues, I will never think of inventory the same again, there is so much more involved. Find out what the legal aspects of cyber-squatting and typo-squatting mean to your business brand from the online branding and marketing legal advice from Denese Espeut-Post. Looking for staff or a new job? Find out how mobile recruiting and company

Publisher Lisa Olson Graphic Design Stephanie Symons Contributors

Denese Espeut-Post, Margaret Holm, Peter MacIntosh, Darcy Nybo, Sandra Oldfield, Ronda Payne, Miles Prodan, Fred Steele Sales & Marketing

marketing is so important to the many smart phone users out there from Barbara Ashton.

Holly Thompson

The new sub-geographical indicator or sub-appellation area of the Golden Mile Bench Wine is a first for BC, recognizing the land as a special area, read first-hand on the benefit this brings from Tinhorn Creek Vineyard, President/CEO, Sandra Oldfield.

info@orchardandvine.net

Circulation

Orchard & Vine Magazine Ltd. 1576 West Kelowna Road West Kelowna, B.C., V1Z 3H5 E-mail: info@orchardandvine.net

Wine availability and liquor laws have changed so much in the last while so we revisit the topic again along with anniversary celebrations and people changes in the regular Comings and Goings article.

www.orchardandvine.net Phone: 250-769-2123 Fax: 1-866-433-3349 Orchard & Vine Magazine is published six times a year and distributed by addressed

Best wishes for a fun filled, profitable summer season! Enjoy the magazine!

direct mail to growers, suppliers and wineries in the Okanagan, Kootenays, Fraser Valley, Lower Mainland, Vancouver Island,

Cellar Dweller Offers 5 Mobile Filtration Systems

Washington State and throughout Canada. Orchard & Vine is also available online.

• 2 Pall Oenoflow Crossflow Systems • Rotary Vacuum Drum Filter (RVDF) • Reverse Osmosis • STARS (Selective Tartrate Removal System) Cellar Dweller Mobile Filtration Service Lesia Wood/Robert Kwakernaak 250.487.2995 • lesia@cellardweller.ca 250.497.2009 • robert@cellardweller.ca

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Summer 2015

Publications Mail Agreement No. 40838008 Undeliverable copies should be sent to:

1576 West Kelowna Road West Kelowna, BC, V1Z 3H5

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Summer 2015

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î Ž SUMMER | CALENDAR

The 6th Annual Similkameen BBQ King is an event where featured chefs compete for the coveted title of Similkameen BBQ King or Queen.

Similkameen BBQ King July 11 from 5-9pm Grist Mill & Gardens Keremeos, BC www.similkameenwine.com Victoriaâ&#x20AC;&#x2122;s Festival of Food and Wine July 16-19 Trade Tasting - July 16 Hotel Grand Pacific, Victoria, BC www.victoriataste.com BC Enology & Viticulture Conference July 20-21 Penticton, BC www.bcwgc.org/conference Wine Bloggers Conference August 13-16 Finger Lakes, NY, USA www. winebloggersconference.org Feast of Fields Okanagan - August 16 Metro Vancouver - September 13 Vancouver Island - September 20 www.farmfolkcityfolk.ca Naramata Bench Tailgate Party September 12 Red Rooster Winery Penticton, BC www.naramatabench.com VitiNord International Viticulture & Enology Conference November 11-14 Nebraska City, Nebraska, USA www.vitinord2015.org 8

Summer 2015

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 SUMMER | NEWS & EVENTS

Photo by Gary Symons

Lang Vineyards Celebrates 25 years on Naramata Bench

The patio overlooking Okanagan Lake at Lang Vineyards.

By Michael Botner Lang Vineyards founders Guenther and Christine Lang led the way with BC’s first “farmgate” winery license, allowing smaller growers to start their own operations. Lang has been undergoing a revival since Chinese entrepreneur Yong Wang purchased the winery in 2010.

The portfolio includes celebrated names like Farm Reserve Riesling, Marechal Foch from 50 year old vines, and the Original Canadian Maple Wine, plus such new labels as limited edition Legacy Riesling and 2013 Cabernet Sauvignon sampled out of the barrel during the first Silver Jubilee event on May 9. Robert (Duffy) Driediger climbed aboard as winemaker at Naramata’s pioneering Lang Vineyards in September, 2014. He took over from Lawrence Herder who moved on after a one year stay. A BC 10 Summer 2015

Photos by Michael Botner

The winery and cellar door have been tastefully updated and the Lang family continues to run the operation at a high standard with Guenther’s nephew, Mike, as general manager and brother, Hans, who manages the 10 acre vineyard. Robert(Duffy) Driediger winemaker at Lang Vineyards.

Guenther Lang, co-founder of Lang Vineyards and his brother Hans Lang the vineyard manager.

native, Duffy grew up in the Okanagan with a family long involved in the local wine industry. Duffy’s training includes a stint working with Heidi Noble and Robert Thielicke of JoieFarm Winery in Naramata. He takes over winemaking duties at Lang as it celebrates its 25th anniversary this summer.

is also on the circuit for ardent fans of BC’s burgeoning boutique wine sector. Guests are invited for complimentary hors d’oeuvres, wine tastings, and live entertainment, to meet the winemakers, owners, staff and family that have made Wild Goose what it is today, and to try the new 2014 releases and join the Vintners Club “pick-up-party”. The winery’s founder Adolf Kruger lobbied with Guenther Lang, Bohumir Klokocka

Wild Goose Estate Winery’s celebrates their 25th anniversary bash in June and

ters Collection, Evolve is led by ChristaLee McWatters Bond, hospitality and marketing director at Local Lounge & Grill in Summerland, and Harry McWatters. Perched on a bench overlooking Okanagan Lake, the winery and cellar door is open daily until Thanksgiving. Focusing on fresh, fruit-forward, approachable, affordable wines, it is sure to be a crowd-favourite. Evolve Cellars has not made too big a fuss over labels – they speak to freshness, brightness and simplicity, letting the wine, the grape variety and price, and a catchy name, do most of the talking. (After all, wine originated as nourishment first and foremost.

Time Estate, Harry McWatter’s futuristic winery on Black Sage Bench has postponed the official grand-opening until the spring of 2016. If timing is everything, then a spring launch garners more excitement and attention than the end of the season when wineries are busy enough gathering the harvest and filling the tanks. The new frontier of wine label design spearheaded by pioneering Vancouver ad agency Brandever hit home recently on a visit to a local VQA store. An overthe-top display of Lost Inhibition red and white wines from Church & State winery at the front of the store made sure shoppers noticed the label’s hypnotic, 3D ap-

and Wolfgang Zeller to create the farmgate winery category for small growers in 1990. JoieFarm Winery on Naramata Bench opened a tasting room and on-site retail store. It is a bold move by co-owners Heidi Noble and Michael Dinn who opened the winery in 2005 with the focus on a functional structure and sales of Alsace and Burgundy-inspired wines mainly to restaurants. With production at 15,000 cases a year, circumstances have changed and JoieFarm now welcomes visitors Wednesday to Monday until October 11. Evolve Cellars opened its doors on Bottleneck Drive in Summerland this May. The latest project from Encore Vineyards group, also home to Time and McWat-

Lost Inhibitions wines, by Church & State with the tagline 'Have a glass and open up!'

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î Ž SUMMER | NEWS & EVENTS

Daydreamer Launches Organic Winery in Naramata peal, long before they knew the name of the wine or what kind of wine it was. Every bottle displayed had a different edgy, cheeky, freaky phrase spelled out in letters, and symbols where appropriate, in a variety of attractive soft, pastel colours. No two labels are the same, at least in the same box, and all have the same theme. Attractively presented, these packages add a fun dimension to parties and dinners, if not taken too seriously, along with the plus that they contain great wines from Central Saanich and Oliver-based Church & State Wines, widely-praised for its Coyote Bowl Series. Australian native Marcus Ansems has recently launched Daydreamer Wines, a small, organic, family-run winery, with his wife Rachel on Naramata Bench. This writer has crossed paths with Ansems previously, first at Creekside Estate Winery in the Niagara Peninsula, and later at Therapy Vineyards in Naramata. A second generation winemaker, his career has spanned the globe with stops in South Africa, France, Italy, Australia and Canada, after graduating from Adelaide University Roseworthy program with a Bachelor of Science Oenology major in

The view from Evolve Cellars in Summerland.

1996. As the wine expert, he is the guiding force behind unique and interesting international selections for the exclusive Hemispheres Wine Guild. Starting small

Evolve Cellars labels peak to freshness, brightness and simplicity.

scale at 1,000 cases, Daydreamer avoids sinking piles of money into the winery by leasing part of a vineyard and contracting with other growers as well as a new custom crush pad, Wine4You. ď Ž The Ansem family has recently launched Daydreamer Wines, a small, organic winery on Naramata Bench. 12 Summer 2015

 SUMMER | NEWS & EVENTS

Clos du Soleil Winery debuts at Canada House Re-opening The boutique ultra-premium Similkameen Valley-based Clos du Soleil Winery was thrilled to be selected as the sole BC wine sponsor for events surrounding the official reopening of Canada House today by Her Majesty Queen Elizabeth. “An absolute honour”, said winery founder Spencer Massie from London. “My fellow Director’s Winemaker Mike Clark, Les LeQuelenec, Peter Lee and our closely knit team of partners and staff are elated that we are here and able to showcase what Canada, and BC specifically, can do. It’s an exciting time for the Canadian Wine Industry – we are crafting top world class wines – and on the cusp of them being acknowledged as such internationally.” Clos du Soleil Winery is based in the Similkameen Valley, billed as the Organic Farming Capital of Canada – a small appellation adjacent to the better known Okanagan Valley.

Canada’s High Commissioner to the United Kingdom, Gordon Campbell said, “I am delighted that so many leading Canadian firms were eager to participate in helping us to celebrate the Official Opening of Canada House on Trafalgar Square in true Canadian style. I would like to personally thank Clos du Soleil Winery for their generosity. They have indeed brought some of Canada’s finest to the very heart of London.” 

The wine presented was their flagship white 2013 Capella, a classic old world style blend of Sauvignon Blanc and Semillon, barrel fermented in very small lots. It was previously declared the Best White Wine overall at the 2011 BC Wine Awards and a fitting milestone for this highly focused artisan winery with limited production and a tight portfolio of wines displaying “Old World Elegance …New World Edge”.

Summer 2015 13

 SUMMER | NEWS & EVENTS

New Filtration Technology Offered by cellar • tek During the week of April 21-24, Okanagan Crush Pad Winery and Henry of Pelham Winery played host to a demonstration seminar of new filtration technology co-sponsored by cellar•tek supplies and DIEMME Enologica from Lugo, Italy. Representatives from wineries in both regions attended to learn more about the new filter. The MicroFlex filter technology was introduced in 2014 after extensive testing in several large Italian wineries with red and white wines near the DIEMME manufacturing plant in Lugo. The concept of the MicroFlex filter combines absolute rated membrane filter cartridges with proprietary software developed by DIEMME to provide gentle, one-pass filtration of a settled wine down to 1 micron. By using a large number of cartridges (12, 24 or 48 depending on the model) the MicroFlex filter is able to filter wines at a high flow

the wine it automatically performs either an intermediate rinsing or full washing of the cartridges before returning the wine to continue filtration. This all happens without operator input so the cellar staff are freed up to conduct other duties during the filtration process.

Checking out the new technology with Matt Dumayne Chief Winemaker at Okanagan Crush Pad.

rate with very low differential pressure (D.P.) across the membranes of the cartridges. This results in a filtered wine ready for bottling without any of the compromised organoleptic properties often associated with other methods of filtration. The software continually monitors the D.P. during filtration and

can automatically speed up or slow down the flow rates to keep the D.P. very low. The software can also determine when the cartridges are too dirty for a gentle filtration, at which point it automatically stops the filter and pushes out the wine from the filter using inert gas to prevent oxidation. After emptying

George Oake from Quails’ Gate Estate Winery is an existing user. “The Microflex allows me to filter our wines in a gentle and thorough manner from 42 NTUs down to 0.4 NTUs: ready for bottle in one pass without stripping colour, flavour or aroma," he says. "The low labour and material costs make this the ideal filter for our winery. The Microflex allows us to eliminate the use of DE in the cellar while improving the quality of filtration. Reduced cost, reduced labour, reduced time, reduced water, safer, more gentle, better end product. It’s a no brainer.” 

BC Working on Apple Export Deal with India By Darcy Nybo Kelowna’s city counsellor Mohini Singh is spearheading the charge to get BC apples into India. Singh, who works as the communications officer for the Ministry of Agriculture, brought up the topic when she was speaking to some tree fruit growers. “I was talking to them and said it would be great if we could export apples to India.” Singh said it was all about timing, and being in the right place at the right time. “I was at the dinner in April in Vancouver for Narendra Modi, India’s Prime Minister. Everything was about trade and I hoped that meant trade would come to the Okanagan too,” said Singh. “I was looking for my table and I saw Premier Christy Clark. We chatted and I told her I wanted to be sure that any trade benefit BC receives should include the Okanagan. She’s now looking into it.” Continued on page 15 14 Summer 2015

Premier Christy Clark welcomed His Excellency Narendra Modi, Prime Minister of India, to British Columbia. The two leaders discussed new opportunities to grow the strong cultural and commercial ties between India and BC.

When Singh returned from Vancouver she met with the Minster of Agriculture, Norm Letnick. “He told me to follow it up and if there was a market he would look into it. I had a meeting with Glen Lucas of the BCFGA and I then I spoke to Fred Steele, the president of the BCFGA. Now Glen is doing a study and looking into pricing and the market. I also talked to Alan Tyabji, general manager at the Packing House, and he came up with some great ideas. We are looking at selling the apples in bulk and having them packaged in India.” President of the BCFGA, Fred Steele said he hoped they could tie exports to India with the bare ground planting for niche market exports. “We need to get all the participants together to discuss how to do it. I see it benefitting a great deal, because with the new free trade deals on the international trade scene, we can niche market into a number of countries like India, Korea and Vietnam where there are a rising number of middle-income families.” As for the timing, it doesn’t look like this will happen any time soon. “We don’t know how long it takes to negotiate something,” said Steele, “but from past experience the pattern is that it takes five years at least. Once you sign the agreement then you have to plant the trees and they take at least three years to produce. Over the next five to seven years many of the tariffs now in place will be coming off. Because of this, we may be able to secure a better relationship with India in the area of trade.” Singh knows that replanting may be the only way to have enough apples for export to India. “People have torn up their apple orchards because they weren’t financially viable. Now we are still studying the whole market situation to see if there is potential.” India already imports apples from other countries; however, Singh believes BC apples are a much better product. “I have made calls to India and what they told me is the apples that come there from New Zealand, USA and China, just don’t taste that good. We have fabulous apples here and just maybe it is a specialty fruit and we can corner a specialty market. There is a lot of appetite at the Canadian federal level for things like this. Prime Minister Modi really wants to open up trade.”

Singh is a strong believer in the old adage, 'when opportunity meets preparedness things happen'. “I see an opportunity so let’s prepare ourselves to meet that opportunity,” she said. “We now have an opportunity as the trade links are there. We have such fantastic fruit here and we are known for it. Even if we could get a tiny market it would be good. There are still of lot of things to discuss on the provincial and federal levels because there are tariffs on the Indian side that have to be worked through.”

To say Singh is passionate about this project would be an understatement. “I am not going to let this drop until we have an answer one way or the other,” she said. “I want to take the lead on this because I am honoured to work on it. I truly want to find out if we have the potential to make money here.” Singh hopes that once the door opens for the fruit trade, other relationships can be built that will benefit all sectors of the Okanagan. 

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Summer 2015 15

Fabrics and Netting for a Growing Market Since its beginnings over 30 years ago as a means to literally “put food on the table”, the family owned and operated company of Ross and Dorian Bernard has grown into an international company proudly serving 6 countries with a full spectrum of innovative solutions for gardeners everywhere. American Nettings and Fabric is committed to excellence and we reaffirm our commitment to service and quality in our everyday relationships with our clients. We have proudly grown from our “backyard” to a company that today has expanded to incorporate 5 warehouses, including a custom sewing facility. With over 90% of our products made in the US, American Nettings is committed to providing the

best, most cost effective products on the market. Our passion is to help growers of all kinds reap the most fruit from their labors--literally. When vineyards first began to expand into British Columbia in the 1980’s, American Nettings teamed up with the Canadian government to design, produce and distribute vineyard nettings of all kinds. Since then, we have become one of the leading suppliers of vineyard nettings for North and South America. Today we provide a large selection of extruded nettings, knitted nettings, multi-row and drape nettings, fruit zone shade cloth, deer fencing, ground cover, hail netting and more. Whether it is protecting growing fruit from birds and bugs or shielding them from

the damaging effects of too much sun exposure, we are your source. With over 30 years of experience working with vineyards, we are confident we have the right product for your needs. We would love to pair with you and your growing efforts. Call American Nettings & Fabric today!

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sales@americannettings.com • www.americannettings.com 16 Summer 2015

 SUMMER | NEWS & EVENTS

BC Hospitality Foundation – Helping Those in Need Chances are, if you are reading this, you likely know someone in the hospitality industry in BC. Did you know that if someone working in the hospitality industry suffers a health or medical crisis not covered by other insurance programs they can apply to be financially assisted for expenses they have? This could be

help with their rent or more. Other valuable programs offered are educational scholarships to study in the hospitality industry. Such a great organization, please help spread the word to those in need.  In the meantime login to the website and make a donation to: bchospitalityfoundation.com

HIT FUNGUS RIGHT IN THE

BC Hospitality Foundation was in Kelowna helping to get the word out on the services they offer. Left to right Bruce Hibbard, Heather Schroeter, Harry McWatters and Alan Sacks.

GRAPES

Expanding Service

cellar•tek Supplies is proud to announce the addition of John Sparreboom to its service department in the Okanagan Valley. John brings with him over 30 years of experience in mechanical and electronic controls from his previous career as the owner of KIMCO Controls. John is excited to be working in the vibrant Okanagan wine industry and is looking forward to meeting the winemakers from Oliver to Salmon Arm. John’s skill set will allow him to fix most of the equipment used in local wineries from the crushpad to the cellar including packaging lines, refrigeration, pumps and control panels. Welcome John! 

15FMC025_Fracture Print - Grapes Orchard & Vine

Summer 2015 17

BC Wine Grape Council 16th Annual Enology & Viticulture Conference & Trade Show Monday, July 20 & Tuesday, July 21, 2015 Penticton Trade Show & Convention Centre The Annual Enology & Viticulture Conference & Tradeshow is a premier wine industry event which brings hundreds of wine and grape industry professionals together to discover new products and services, to learn about the latest technologies and research, as well as to network.

Highlights Chicken wire science: Changes in phenolics during wine grape development Dr. Markus Keller, Washington State University, Prosser, WA Botrytis management… Dr. Doug Gubler, University of California, Davis, CA Grapevine cold hardiness research and strategies to mitigate freeze injury in Ontario Dr. Jim Wilwerth, CCOVI, Brock University, St. Catharines, ON Precision irrigation management using soil and plant based sensor technologies Dr. Mark Greenspan, Advanced Viticulture, Sonoma, CA Canopy Management and Vine Balance Dr. Michelle Moyer, Washington State University, Prosser, WA Italian Pinot Grigio Winemaking Giordino Formenti, Lomberti, Italy How to deal with fruit nutrition… Dr. Charles Edwards, Washington State University, Pullman, WA Crop Estimation and Management Automation… Dr. Luis Sanchez, E&J Gallo Winery, Modesto, CA There will also be a Vine Disease Clinic, Barrel Workshops, panels on Winter Hardiness and Understanding Cluster Health, Tradeshow presentations and much more.

Visit the Tradeshow - Over 100 exhibitor floor displays Sponsored by

e-mail: bcwgc@shaw.ca or visit: www.bcwgc.org 18 Summer 2015

Trim: 4.9”

Photo by Gary Symons

 SUMMER | NEWS & EVENTS

Enology & Viticulture Conference The 16th Annual Enology & Viticulture Conference is coming to Penticton in July. This international two-day event draws speakers, suppliers and delegates from all over the world. You’ll be guaranteed to meet up with your peers and new contacts while learning valuable information.

Trim: 10”

Start the day early with a breakfast and learn about the leading edge research and technology for vineyards and wineries from knowledgeable speakers from BC, Washington, California and Italy, Be sure to check out the tradeshow area, where you will see new products, new suppliers and get advice and tips on products you currently have from more than 100 exhibitors. Day one has viticulture presentations, enology workshops and the tradeshow workshops. A pleasant way to end the first day is with a wine and cheese reception in the tradeshow area. Then on Day two you have the enology presentations, viticulture workshops and more tradeshow workshops. Topics include sustainable practices for growing grapes and making wine, managing grapevine cold hardiness, grapevine viruses, canopy management, chicken wire science and much more! Enology topics include what BC wineries need to know about safe food and the upcoming food safety regulations, wine yeast, barrel fermentation and as always, interesting panel discussions.  Check out the agenda for more details. www.bcwgc.org

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Summer 2015 19

Proper training and supervision can help prevent injuries in the workplace

Visit our industry experts at the Enology and Viticulture conference in Penticton July 20â&#x20AC;&#x201C;21, 2015. For additional safety resources, visit worksafebc.com/manufacturing or email manufacturing@worksafebc.com

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20 Summer 2015

4/2/14 11:49 AM

Fraser Valley's Singletree Winery

Long-time Farm Family Goes Into Wine Biz By Ronda Payne

nyone who has ever tried it can attest, starting a vineyard and winery is a massive undertaking. Approaching that project in smaller chunks would be more manageable, but is that even possible? A family in Abbotsford found a way. The Etsell family, well known in many agricultural circles, opened the tasting room of Singletree winery in the early spring of 2015. Debbie, Garnet and sons Andrew and Nathan share in the bigger decisions about farm activities, but day-to-day operations fall to Andrew and Nathan. â&#x20AC;&#x153;We bought this property in 2000 and put up a turkey barn about a year later and had the fields,â&#x20AC;? Andrew said.

Photos by Ronda Payne

Both Andrew and his brother wanted to farm. With Nathan overseeing the turkey operation, Andrew took a horticulture program at the University of the Fraser Valley (UFV) then spent time at Mission Hill Family Estate winery for his practicum. It became clear what should be done with the fields.

Summer 2015 21

Andrew Etsell at the tasting bar.

Our problem is slowing the plants down. The first two years was learning to have the weeds, to take up some of those nutrients. Andrew Etsell “I caught the bug [for the wine industry] up there [at Mission Hill],” noted Andrew. The Etsells knew it was possible. A few properties to the south, Vern Siemens of Mt. Lehman Winery has been growing grapes for more than two decades and opened his own winery in 2009. “We knew we could grow grapes,” Andrew said. It took a lot of research to determine what grape varieties would grow best in the gently sloped micro-climate and it took a number of years before the first planting. “I started looking into what varieties would work here,” commented Andrew. 22 Summer 2015

That exploration began in 2005 with the first planting occurring in 2010. While the Etsells did get input from Siemens in terms of root stocks, Garnet found the rest of the industry difficult to gain information from. “The industry is tight lipped,” he said. “The attitude is ‘we struggled to get information and you’re going to struggle.” The best information came about when Andrew and Garnet attended a Viticulture conference. Planting followed with the first two acre block consisting of four varieties: Pinot Gris, Sauvignon Blanc, Pinot Noir, and Siegerrebe. Of the latter varietal, Garnet said,

“There’s not a lot of it, a little bit in B.C.” Despite the lack of Siegerrebe in the market, the Etsells found a one and a half acre, six year old vineyard not far from their farm that also grows the grape. They lease this vineyard in addition to obtaining some other varieties from the Naramata and Oliver regions. “We are looking for contract growers,” Garnet noted. “We would like to have a relationship with a grower.” The first grape harvest for wine was in 2013 which produced about 400 cases. “That was our 2013 vintage,” Andrew said. “We made two whites out of the Fraser Valley fruit.” Here is where the story takes a twist. Readers might expect to hear about how Andrew struggled with the wine making and the challenges inherent in that first vintage, but the Etsells chose to work with Okanagan Crush Pad to capitalize on that organization’s experience while they got up to speed on the many other aspects of their venture. “We’ll continue to work with them until

we get to a mass,” Garnet noted of the working relationship. The 2014 harvest of Siegerrebe went on a 20 foot flat deck truck and Andrew went with it to the Okanagan. “I have hopes of making the wine down the road here,” said Andrew of future visions. “I will be making the Siegerrebe here.” The family sees the varietal as being their signature wine in the future. They think of it as a good variety for their region because of the early ripening. Siegerrebe is picked based on the acidity which will be lost if permitted to ripen too long. “We’ll still be pressing [the grapes] up there [the Okanagan] and bringing the juice down [in the near term],” noted Garnet. “Probably in three years we’ll be building our own production facility. It’s a way to keep the investment reasonable.” Andrew has taken his certificate in winemaking, but continues to stay focused on the major input – the grapes. It’s what he calls a “grape first” standpoint.

“It’s learning as you go,” he said. “There’s always something to improve on. If you get 100 viticulturists in a room, there’s 100 different ways [to grow grapes and proceed to winemaking].” One of Andrew’s key learnings was changing the heights of the plants to better coordinate with the seasons on the farm. This also came with an understanding of the soil and its impact on the plants. “We don’t irrigate because it’s a heavy clay soil,” he said. “It holds a lot of nutrients. Our problem is slowing the plants down. The first two years was learning to have the weeds, to take up some of those nutrients.” Another learning was the amount of work entailed in planting and pruning. With 11 acres and six varieties now planted, the family will take a break from planting this year to “wait and see what works.” In the meantime, the Etsell’s can enjoy the fruits of their labour in the tasting room they’ve established that overlooks planted fields. 

Andrew and Garnet Etsell at the Singletree sign.

Summer 2015 23

Nitrogen, the Future of

24 Summer 2015

Blueberry Farming By Ronda Payne

rowing blueberries, like most fruit, truly is part art and a lot of science. It takes people who have a keen interest in why certain plants do what they do to ensure B.C. growers stay competitive and continue to produce arguably the best berries in the world. At a large blueberry field in Pitt Meadows, berry researcher Eric Gerbrandt is in full swing ensuring plots are set up for nitrogen level trials. This is the second Lower Mainland farm involved in the replicated nitrogen trials for a total of three acres in the trial.

This is the future of the industry, we want to increase farm gate revenues by optimizing what we’re putting in and optimizing what we’re getting out while not unduly increasing the cost of production. Eric Gerbrandt The Pitt Meadows site had about 100 Elliott bushes pulled in favour of five other varieties to allow for a total of six varieties in four test blocks. A different mix of varieties are being trialed on the other local farm. “It’s a large scale trial,” says Gerbrandt. “We are applying [nitrogen] on a whole row basis… with significant grower input. We work off the growers’ standard practices as the base.” The purpose of the trial is to determine the optimal amount of nitrogen for yield and berry quality when it comes to different varieties. “This is the future of the [blueberry] industry,” Gerbrandt says. “[We want] to increase farm gate revenues by optimizing what we’re putting in and optimizing what we’re getting out while not unduly increasing the cost of production.” He described the role of blueberry research as a two-pronged approach. The first prong is about the plants themselves which is assisted by breeding programs, the second is about achieving optimal horticultural management for those plants in their specific growing region and includes climate adjustments as well as things growers do for and to the plants. In this trial, on the soil side of things, Gerbrandt has the help of David Poon of the B.C. Ministry of Agriculture.

Photos by Ronda Payne

“The primary way we can move agriculture forward is to develop and find new genetics,” he notes of the first prong of research of varieties in the industry. “Our local breeding program is also importing varieties from other breeding programs and around the world.”

These imported plants may come from public stock, private growers or university programs. B.C. works closely with Oregon State University (OSU) and their U.S. Department of Agriculture (USDA) programs as well as with Washington State University (WSU). These are ongoing collaborations to discuss and share blueberry genetics and stock. Of course plants are always most suitable when trialed in a similar climate, thus the benefit B.C. growers have from the work Gerbrandt does.

Summer 2015 25

The Pitt Meadows site has a total of six varieties in four test blocks.

“It’s always a crapshoot bringing plants in [from other regions],” he notes. Of course, sometimes a plant that did poorly in a different region will do well in B.C. and that makes Gerbrandt’s work that much more interesting. The second prong of the research, which is relative to the current trials, is horticultural management. “Once you’ve got genetics [the right plants in place], it’s time to figure out how to grow them [the plants] better,” he says. Gerbrandt notes this comes down to variety specific management. “It entails everything from pruning, plant spacing, fertilizer rates, irrigation and more,” he says. “Each variety will have a different reaction to these management [actions or inputs].” Gerbrandt notes that one of the priorities in B.C. is to optimize nitrogen rates in Duke and Reka varieties. “[The idea is] to determine optimal yield and fruit quality,” he adds. This approach will optimize the bottom 26 Summer 2015

line for growers in that “we want to add inputs until those inputs are no longer having an economic benefit,” notes Gerbrandt. This approach creates a “tipping point” for growers where they can achieve optimal results without wondering what inputs remain in the soil without benefit to the plants. The varieties being tested are what Gerbrant describes as the “up and comers” which were discovered through previous variety trials. “They are just coming on the market [possibly from] other regions or are being evaluated for release from the current breeding program,” he outlines.

Berry researcher Eric Gerbrandt at his study site.

Clearly the greater blueberry industry goal is to increase international competitiveness in the markets and maintain B.C. blueberries as the industry leader in fruit quality. With domestic markets adequately filled, advances in export of the B.C. berries is where growers need to proceed.

growing fruit exports. Certainly the Canadian and B.C. name on fruit is synonymous with quality, but that quality must be at its highest level to ensure the berries received in foreign markets are just as good as the berries picked from the fields.

Gerbrandt noted the need to maximize fruit quality goes hand in hand with

Nitrogen will play a significant role in that pursuit as will Gerbrandt’s current trials. 

Davison Orchards Country Village

Photos courtesy of Davison Orchards

VARIETY IS THE KEY TO SUCCESS

By Darcy Nybo

hird generation farmers, Tamra and Tom Davison of Davison Orchards near Vernon had a decision to make 30 years ago. They recognised the way they were running their farm was not sustainable and it was doubtful it could be passed along to future generations. There was simply no money in it. “Back in the day, my dad and I were winning awards for our apples, but we weren’t making any money,” said Tom Davison. “I told him we had to do something radically different. We changed our marketing plan to respond to the wants of our customers. Because of this we now have three of our kids and two of their spouses working here full time. The great thing about having young people involved in your business is it energizes it. You are going to miss a lot of things if you don’t have the younger generation working with you.”

The Davison family.

Summer 2015 27

We set up a tasting bar with all the ripe apples for everyone to try. This way they can compare and find the apples they really love. Tom Davison Davison Orchards is now one of the must see stops for locals and tourists alike. Everything they grow is used on site. Fresh fruits, vegetables, pies, tarts, jams, butters, and juices are all made or grown right here. “We collected a survey from our customers last year, and from that survey we came up with the some changes,” explained Shane Landreville, the marketing and events coordinator for Davison Orchard. “We changed the farm tours to make them more engaging and fun for all ages. Now our Johnny Popper train makes various stops throughout the orchards. Each week, depending on the season, we bring kids and adults into the orchard and show them the different flowers and describe how fruit changes from a flower to a full-grown fruit.” At the moment, Davison Orchards has numerous fruits and vegetables grown on site, including 25 varieties of apples. The logic behind it is pure marketing genius. “In September/October we may have 10 - 12 varieties ripening at one time,” explained Davison. “We set up a tasting bar with all the ripe apples for everyone to try. This way they can compare and find the apples they really love. Our guests enjoy learning which apples are best for baking and which are great to juice and which taste the best straight off the tree. Our customers have become connoisseurs,” he laughs. “Instead of being wine snobs they are now apple snobs.” Twenty-five varieties is a lot for a small farm, but they make it work. “By having that many varieties of apples, we have some28 Summer 2015

Nickie Killback at the apple tasting bar.

Summer 2015 29

Photos courtesy of Davison Orchards

Of the 25 varieties, Davison has an acre and a half planted in Arlet from Switzerland, (around since 1958), and Mutsu, from Japan, (around since 1930). “They both have unique characteristics,” he said. “Mutsu is large with great flavour and makes the best applesauce ever. I love applesauce and I can tell when my wife is making it with Mutsu just by the aroma. Arlet is a long storage apple with great flavour and it’s fantastic in our juice. We blend six or seven varieties together. Having a lot of different varieties works well because every season the fruit is a little different. We hear so many comments from people when they taste our juice. For most, it takes them back to a slower, less hectic time in their lives.” Last year Davison Orchards planted 20,000 new apple trees. They currently have 15,000 in a nursery, which will double their farm to 60 acres of apples. It’s in these orchards that visitors can ride the Johnny Popper Train and learn a little more about agriculture. For some, the visit to Davison’s is about the old John Deere tractors that pull the Johnny Popper train. “We get quite a few older farmers from the prairies who just stand and listen to the engine of the tractor. That old 2-cylinder John Deere poppin’ away brings back memories. I’ve even seen some tear up after awhile of listening.” Davison and his family know that their

Photo courtesy of Davison Orchards

thing different than what you’ll find in a grocery store,” he said. “In the stores it’s not always about flavour. Many times apples are chosen to sell in stores because they are long range shipping varieties. We focus on flavour for everything we grow – from cantaloupe to tree fruits. It’s one of the ways we stand out. Everything is tree ripened and has tons of flavour.”

The Johnny Popper Train now stops regularly in the orchard to give information to the visitors.

We get quite a few older farmers from the prairies… that old 2-cylinder John Deere poppin’ away brings back memories. I’ve even seen some tear up after awhile of listening. Tom Davison farm is a business and it has to work financially; however, it’s some of the smaller rewards that truly make what they are doing worthwhile. “When you see a dad and his daughter playing checkers out front it brings a smile to your face,” said Davison. “The entire area, even though it is sloped, has been made stroller and

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wheelchair friendly. Anytime you see family come together and slow down, when they reconnect and enjoy what we’ve built, that’s a great reward.” Davison Orchards has achieved what many farmers want. They’ve created a business they can hand down to all the generations to come. 

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Wine Law Reform Revisited By Michael Botner

Photo by Danil Roudenko | Dreamstime.com

ne of the positive aspects of BC wine law reform is the introduction of liquor sales and marketing at Farmers’ Markets. As partial fulfilment of recommendation #31 regarding sales of BC wine, craft beer and spirits at temporary off-site retail locations such as farmers’ markets, it is a tangible step in the right direction for liquor law and policy reform. Not surprisingly, the biggest beneficiaries of law reform – touted as a wideranging process to resolve a huge backlog of problems and bottlenecks with respect to BC liquor law and policy – are producers and consumers of BC’s finest. Stakeholders have been given a mixed bag of regulatory offerings aimed primarily at cutting red tape. These include such tidbits as: • allowing minors in pubs until 10 pm • permitting minimum-pricing happy hours • giving the green light to mixed spirit drinks at arenas and stadiums • allowing patrons to order liquor without food and carry a drink between adjoining licensed establishments • permitting wineries (and winery restaurants) to serve liquor such as beer they did not produce • removing fencing barriers for familyfriendly festivals and • off-site storage of liquor. The promise to allow the sale of wine in grocery stores became reality on April 1

when the first BC VQA store opened at the Save-On-Foods South Point supermarket in Surrey, which is the 20th of 21 active BCWI VQA licenses. A 2nd Overwaitea Food Store, Urban Fare Shangri-La in downtown Vancouver - is awaiting approval from city hall to open a BC VQA section. The South Point location boasts a spectacular 500 BC VQA wine labels on designated shelves, in a specific aisle or aisles, “the largest selection of BC wines in one place”, according to the BC Wine Institute. Half of the products are sourced from smaller producers with limited production not offered at BC Liquor Stores. Amazingly – in BC at least – shoppers can pick up BC wines along with other grocery items, hopefully but not necessarily

also BC made, and pay for everything at the same cash – as long as purchased at tills that have a Serving It Right certified, 19+ cashier. “If not, it is flagged for manager override”, says BCWI president and CEO, Miles Prodan. The wide selection is a bonus, as supermarkets (in jurisdictions where it is allowed) are known best for carrying low cost, high volume wines and other liquors. That and the fact that the BC VQA wines are sold under a third-party operator arrangement with the BC Wine Institute make this a completely unique model, one which shoppers might get to like and want to have closer to home. But whether shoppers in far-flung regions of the province or other urban areas also benefit or it simply becomes a curiosity of BC’s peculiar wine marketing framework is still to be deter-

Summer 2015 31

mined. Unless the existing BC VQA stores decide to relocate in supermarkets, where consumer traffic is highest, the number of these stores appears to be limited by the number of available licenses, by limited growth potential for producers of 100% BC wines, and by the reaction of US and other international trade partners which could see it as a violation of Free Trade agreements.

• Cabernet Franc • Cabernet Sauvignon • Chardonnay • Gamay • Gewürztraminer • Malbec • Merlot • Muscat Ottonel

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The other model for supermarkets of a “store within a store” could be history before it even gets out of the starting gate. It is a weird business model in which these supermarket outlets must stock only 100% BC wine, whether or not VQA designated, and require separate cashiers. To relocate in a supermarket, existing independent wine stores must give up their non-BC product lines and make public health and safety paramount by providing separate cashiers, not exactly the ultimate in convenience. Under this version of booze in supermarkets, shoppers could conceivably, but not necessarily, have the option of purchasing other BC liquors such as fruit wines, ciders, meads, craft beers and spirits, which are not available at VQA stores. Retail, Wholesale Pricing and Distribution

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Also on April 1, changes to retail and wholesale pricing and distribution went into effect for all liquor retailers in the province. Government’s stated intentions – designing changes that do not raise government revenues or retail prices, while leveling the playing field for retailers of all persuasions - appear just a tad fanciful given what the government has actually put into effect so far. While implementing a single wholesale price for all retailers with normal upward wholesale pricing replacing backwards discounts and changing to tax excluded retail pricing like other products and stores are reasonable aims, how it is done is what really counts. All of this is of concern to local wineries as many strive to market their 100% BC wines through independent wine stores, BC liquor stores and restaurants. To the extent that they would prefer an efficient government distribution system, a healthy tourism sector and thriving wine culture in this province, actions speak louder than words. New margins for independent wine stores are so low at about 15% that they cannot operate successfully without raising prices to uncompetitive levels for all but the cheapest, highest volume wines. Using the same margins, government stores operate without the requirement to make a profit and will not likely recover all of their costs. Raising prices for them is inevitable just to recover costs. The requirement for both government and private retailers to purchase liquor from the wholesale branch of the Liquor Distribution Branch is - for all intents and purposes – a conflict of interest. It is difficult to see how this scenario amounts to a level playing field. Perpetuating the requirement for restaurants to purchase wine only from government liquor stores and pay full retail price for wine and other liquors puts the hospitality sector at a competitive disadvantage. Apart from the added challenges to hospitality businesses, it is a turn off to clients of restaurants, locals who like to dine out and enjoy wine with food. It also makes us appear bush league to many tourists and it puts a damper on sales of fine BC wine. And who is not in favour of a healthy wine culture – responsible appreciation of fine wines and foods of the world – as the basis for a healthy, competitive, world class wine industry in BC? 

 WANDERINGS | SANDRA OLDFIELD

4 Reasons Why Grape Sub-appellations are a Good Thing

inister of Agriculture, Norm Letnick, announced at the end of March that he signed into existence the first subappellation in British Columbia. That sub-appellation is the Golden Mile Bench in Oliver. A sub-appellation, or as BC calls it a sub Geographical Indicator, is an area of land officially recognized by the province as a grape growing region. Its designation can be used on the front la-

1. Sign of Maturity for our Industry

bel of a wine bottle if it can be proven that at least 95% of the grapes from that subregion went into that wine. The larger region in this case is the Okanagan Valley, the officially recognized appellation for approximately 90% of BC’s grapes. This is the first time the large and wildly diverse area known as the Okanagan Valley has been further divided. The process took approximately seven years to complete and as the first one approved in BC, I think it is appropriate to stop and reflect a bit on this historic change to our BC wine landscape and what it might mean. Why are sub-appellations in BC’s grape and wine industry a good thing?

Our BC wine industry is, admittedly, young when compared with old world countries. It was started in earnest in the 1950s and has grown steadily since then. In the past 60 years it has changed dramatically; however, labeling has not. We label our wines with one of five appellations in existence today, the Okanagan Valley, the Similkameen Valley, the Fraser Valley, Vancouver Island and the Gulf Islands. Differences within these regions were left up to individual wineries to espouse. It is time we enter the world wine stage by discussing our unique regions collectively. People who know

something about wines might care if the bottle comes from France or California or New Zealand, but people who know a bit more about wine (wine enthusiasts who are core customers for our industry) tend to ask if it came from Bordeaux, Sonoma County or Central Otago. BC needs to be in those types of conversations. As they said in the Lion King, “It is time.” 2. Sub-appellations put Grapes on Centre Stage Since the granting of the Golden Mile Bench in March, I have had to explain to numerous people what a subappellation is, and more importantly, what it is not. It IS the place where the grapes are grown in your particular

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bottle of wine. It IS NOT where the winery is located. The powerful thing about appellations is they are a guarantee of origin of the raw materials – the grapes. No matter where the winery is located in BC, if it can prove that 95% of the grapes came from the said region, then that designation can now go on that label. We all know the importance consumers place on sourcing local and knowing where their

food comes from. Sub-appellations fall right in line with these consumer needs. 3. Sub-appellations Change our Conversations Sub-appellations allow our industry to begin to talk about real characteristics that unify grape growing, rather than man-made associations. For example, the vineyards of the Golden Mile Bench share

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a series of alluvial fans seen nowhere else in the Okanagan, set at a higher elevation off the valley floor and with a gentle 5-15% slope. Their aspect faces east getting the morning sun, but not a great deal of the hot afternoon sun. Their mineral rich soil is mostly from the mountain range it backs onto – Mt. Kobau rather than soil that was mixed during the glaciation era. These are the characteristics that unify the grapes from this bench. These kinds of discussions are not happening nearly enough in BC amongst wineries and grape growers. Sub-appellations do not exist because they share the same postal code, or proximity to the nearest town, or inclusion in a tourism marketing association. Sub-appellations are grounded (literally) in innate characteristics such as geology, landforms, climate, slope, aspect and geographic influences. The conversations we can have with consumers become so much more meaningful and powerful because they will begin hear to how our land relates to the wines they buy and we as wineries will see better how our vineyards are connected to the land around us. 4. Other Sub-appellations will Emerge

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Sub-appellations in BC are wonderful for all concerned. Now the doors are open for more regions to be approved in the future. I remember sitting in meetings many years ago when regulations were passed allowing for the existence of subappellations. Back then the prospect for establishing them was far in the future and we knew we would not have to think about them for many years. Well, many years passed and the time is now. I look forward to seeing how other regions tackle defining their grape growing regions. I know each will go through a process as unique as their region and that is a very exciting prospect indeed.  Sandra Oldfield, winemaker and owner of Tinhorn Creek Winery in Oliver. Follow her blog at www.sandraoldfield. com or on Twitter at #CabFrancTuesday.

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34 Summer 2015

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 THE WILD THINGS | MARGARET HOLM

Bats in Your Belfry? Consider Yourself Lucky!

There are at least sixteen species of bats found in British Columbia and although most species roost in caves, cliffs and trees, six species like to roost in man-made structures such as houses, bridges, and barns. Male bats need somewhere to roost during the day while female bats need habitat suitable for giving birth and rearing young. Temporary daytime roosts can include

Photo courtesy of Juliet Craig

ats play an important role in our environment, consuming large amounts of insects, some of which are costly agricultural and forest pests in their larval and adult flying forms. A healthy bat population is definitely a big plus for agricultural producers.

Cluster of the rare Townsend’s big-eared bats in a house.

gether but colonies of a hundred or more are common and a few special sites, such as the Peachland Visitors Centre, support more than 2000 bats.

any outside wall covered by a roof, trees, patio umbrellas, as well as specially made bat boxes. Pregnant females seek out warm, enclosed structures which they share with others of their species. Many maternity colonies are small with only a few bats roosting to-

The diversity of bat species in our province indicates the high biodiversity and health of natural habitats. Half of the province’s bats are consid-

ered potentially endangered or threatened species at risk due to loss of habitat, destruction of roosting sites, and environmental contaminants affected bat populations and insects. Luckily many orchard and vineyard owners realize the benefit of having bats around and have erected bat houses on their properties.

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As an ecologically and economically valuable group of species, bats are protected by the BC Wildlife Act. Bats can only be evicted in the appropriate season in a safe and sensitive manner. Bat eviction is not necessary if bats use outside walls as a day roost or their roost inside a building does not causing any problems with noise or guano. If bats are entering living or working quarters or dropping guano into areas causing food safety concerns, entry point areas can be sealed off. The repairs should be done after the bats have left between November and March. A one way exit flap can be used to evict bats in March and April before the young are born and in September once they can fly. The flap or exit tunnel “bat cone” avoids trapping bats inside a building, allowing bats to exit but not re-enter. The Community Bat Programs of BC have a website and toll-free phone line at www.bcbats.ca for information on bats, and advice on bat evictions and installing bat houses. Most regions of the province also have a community bat coordinator who can be consulted and in some cases, visit property owners who would like recommendations on bat management.

Cheers!

If you have a bat colony on your property or would like to put up a bat box on suitable habitat, the BC Community Bat Program would like to hear from you. Call toll-free 1-855-922-2287.

Nikki Callaway & George Oake toasting on Quails’ Gate’s new ALBRIGI tank and catwalk installation

ess the succ o t t n e m it lopment s comm the deve onstrate o m t e s d a k ll e e our we “Cellart hey mak inery as T . w y l r a t u s u id d d to indiv n wine in etermine ia d d of each a e n r a a C y l e fessiona olution!” s and th of a pro e right s lem the ir h b t o r d p in r f a cell

Recently the Little Brown Myotis, a species that commonly uses buildings, was listed as Endangered due to the devastating impacts of White Nose Syndrome in eastern Canada. This introduced fungus has killed approximately six million bats in North America. Since the disease is not thought to be in western Canada, community bat projects are doing all they can to promote bat conservation prior to its arrival. The “Got Bats” program is funded by the Habitat Conservation Trust Foundation and federal Habitat Stewardship Program, working with the BC Conservation Foundation.  Margaret Holm works for the Okanagan Similkameen Conservation Alliance. Contact her at outreach@osca.org.

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 LEGAL LIBATIONS | DENESE ESPEUT-POST

Protecting Your Branding on the Internet

randing is an important part of any business. No matter what type of business you are in, there is value in your brand. Maybe your orchard, vineyard or winery has a particular name, slogan or symbol which you use to distinguish your goods from your competitors. Your customers recognize your name and they will choose to give you their business because they value your service and your product; they will accept no substitutes. A strong brand gives you an incredible competitive advantage. Promote your brand and protect your brand. The internet has a massive impact on branding and has many benefits. You can personally connect with potential

you to learn what your customers think you are doing well, could be doing better or avoid a “viral” customer complaint. Second, as with other forms of branding, there is a risk for abuse (such as typosquatting or the sale of counterfeit product) that can lead to lost revenue or damaged reputation if not identified and addressed.

customers who are not in your town or city expanding your potential client base. You can offer loyalty programs and encourage your customers to make multiple purchases. You can use your website to communicate with and distribute your product to your clients. You may even benefit from viral marketing which results from your customers sharing information about your business with their own personal network. Simply, the internet allows you to manage your traditional customers more efficiently and promote your brand more broadly.

An important part of branding is selecting a domain name which is consistent with your brand (for example, averylawoffice.ca is my business domain). Remember, when dealing with domains, the registration system is first come-first served. Unlike trademarks, there is no process in place to determine a person’s entitlement to a domain or to allow a challenge to a prior legitimate registration based upon competing use. This means that there can be conflicts between businesses that have legitimate rights to the same name. There can only be one averylawoffice. ca, but a competing business may own averylawoffice.com,

When you expand your branding strategy to the internet, you should make some time for online monitoring for two main reasons. First, internet branding often comes with non-traditional forms of “word of mouth” advertising such as discussion boards, consumer rating websites, blogs and review forums. Many people use the internet to obtain product information and reviews. Online monitoring may help

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averylawoffice.org and averylawoffice.net. When registering your domain name, think about whether you should obtain other names to allow for future expansion or to prevent others from obtaining them. You can also consider registering your domain name as a registered trademark. When it comes time to registering your domain name, you may find that the name you want has already been registered to someone else. If the registration is legitimate, you will need to select another name or attempt to acquire rights to the name directly from the owner. If the registration is illegitimate, this is cybersquatting. Cybersquatting occurs when someone registers a domain name similar to a brand name to which they have no claim and later tries to sell the domain name to the brand owner. This is an abusive form of registration and proceedings can be brought under the Uniform Domain Name Dispute Resolution Policy. Court

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Summer 2015 37

actions for trademark infringement or passing off may also be considered on advice from your lawyer. Another form of abuse, typosquatting, occurs when someone registers a domain name that is identical to a brand name except for a minor misspelling with the intent that they will get hits from people who mistakenly type the brand name. As noted above, online monitoring and policing will help avoid negative impacts from such abuse. Website optimization is also an important aspect of internet branding. Metatags and keyword summaries for your website are vital to the best search engine results. Linking to images or documents on other websites is also beneficial and should be undertaken on a case-by-case basis, preferably with the consent of the other website owner to avoid any potential claims for defamation or copyright infringement. If you have an interactive website that can be accessed outside of Canada, it is recommended that your website comply with the laws in force in the areas where your customers are actually located. Relevant laws may include intellectual property laws, consumer protection, product liability and defamation. Alternatively, your website may include a disclaimer which sets out the governing law and jurisdiction (e.g. BC law) which your customers must accept to continue on to your site or make an online purchase. Finally, to comply with Canadian privacy legislation, your business should develop a website privacy policy which sets out the personal information being collected, why and how it is collected and who has access to it. ď Ž Denese Espeut-Post is an Okanaganbased lawyer and owns Avery Law Office. Her primary areas of practice include wine and business law.

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 MACINTOSH ON MONEY | PETER MACINTOSH

Accounting for Inventory – Art, Science or a Bit of Both When are you required to account for inventory?

t seems like inventory should be a pretty straight forward issue for accounting and tax purposes. As a basic concept, inventory should be valued as an accumulation of the costs that were required to manufacture a product and an applicable share of overhead related to the production process. However, the issue of when and how to value inventory, in the context of farming and wineries, is not really well defined in the Income Tax Act. Furthermore, the calculation of inventory directly impacts the profitability of your business as reported in your financial statements.

ing a farming business and you must adopt accrual accounting?

Farming operations are allowed to account for income and expenses on a cash basis for tax purposes. When you spend cash you get to take a deduction for tax. Similarly, when you receive cash from product sales you include it in income. Additionally, there are other adjustments that allow bona fide farmers to smooth their income from year to year and manage their tax liability.

Canada Revenue Agency has held a long standing administrative policy that the business of making wine is separate and distinct from farming operations such as growing grapes. A recent tax court case challenged this position and the taxpayer was successful in arguing that its operation of an estate winery was in fact a farming business. However, the court’s decision was very clear in stating that the facts of any situation will determine whether a business, such as a winery, is a farming business or a combination of a farming business and a non-farming business. As a winery expands or acquires more property then these facts could impact the farming/ non-farming analysis. The important point to note is that the specific facts of each business situation must be examined on a regular basis. More often than not,

Subsection 248(1) of the Income Tax Act states farming “includes tillage of the soil, livestock raising or exhibiting, maintaining of horses for racing, raising of poultry, fur farming, dairy farming, fruit growing and the keeping of bees”. Growing grapes would meet the definition of farming. However, what happens when you convert grapes to wine? Are you still in the business of farming and allowed to use the cash basis of accounting and tax reporting? Or are you no longer operat-

making assumptions about your farming status will lead you to wrong choices for your tax reporting. How to account for inventory? If you have determined that you cannot use the cash method of accounting then you will need to record your inventory value as part of your accounting system. Setting up inventory values on your balance sheet for month end or fiscal year end reporting is referred to as accrual accounting. Accrual accounting is less flexible, as compared to cash basis accounting, in terms of allowing business owners to smooth their income for tax purposes over several periods. We see two main mistakes that business owners make when trying to value inventory. The first is they value their inventory at retail prices i.e. what they sell it for to their customers. Secondly, we see inventory being valued at some kind of “industry stan-

Constellation Laboratories is one of Canada’s leading independent testing laboratories. We offer a wide range of Quality Control services to cover the full range of winery activities: • Preharvest Maturity • Fermentation • Ongoing Storage • Prebottling Analysis • Component Packaging Testing • Export Analysis Certificates • Production Quality Monitoring DROP OFF LOCATIONS Constellation Laboratories 7857 Tuc-El-Nuit Drive, Oliver, BC • 250.498.4981 Cronie Winery Supplies 200 Ellis Street, Penticton, BC • 250.493.1324

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Summer 2015 39

dard” for bulk and bottled wine. Inventory must be based on an accumulation of actual costs incurred by a business and it is not correct to record inventory at its retail value. Using a “standard cost” is fine as long as the standard cost is based on the specific business’ unique cost structure and not some general rule of thumb number. The wine industry is unique in that the cost structure for each vintage can be quite different due to changes in crop yield. A crop year with a larger yield that resulted in higher cases of bottled wine will have a lower per bottle cost than a crop year that was lower producing. If a winery buys grapes from an outside grower one year, when it does not normally make grape purchases, will have its cost structure, and related inventory value, impacted for that year. There are other variables that can impact inventory valuation as well and this is where the “art” of valuation of wine inventory comes into effect. How does this affect my business?

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Normally the cash basis of accounting involves early recognition of expenses. If a winery owner makes the wrong choice of cash versus accrual accounting then the potential adjustments to its income for tax purposes can be significant. If Canada Revenue Agency was successful in denying a winery the utilization of cash basis accounting then the result could be a big tax bill. Inventory valuation is important because it directly impacts the net income of a business. In addition, inventory is the asset that must be well managed in a winery business in order to avoid cash flow issues. If it is not being valued correctly then financial information could be misrepresented and wrong business decisions made. Frequently reviewing your system of accounting for inventory with your internal accounting staff or external accountant is always an excellent idea.  Peter MacIntosh, CPA, CA is a partner with White Kennedy LLP. White Kennedy has offices in West Kelowna, Penticton and Osoyoos. Peter can be reached at 250-492-9984 or pmacintosh@whitekennedy.com.

î Ž SEEDS OF GROWTH | FRED STEELE

Optimism And Uncertainty Abound in 2015 selves as competing interests.

Many farm groups do not like the two zone policy instituted by the Provincial Government. In zone one, the regulations are more stringent than in zone two. It should be noted there is a great deal of land in zone two that is very productive.

or well over a year farmers are looking to the future with a mixture of optimism and uncertainty. When an industry goes from shrinking to expansion that is to be expected. First letâ&#x20AC;&#x2122;s deal with the minor ripples of uncertainty. In the past few weeks we witnessed the firing of Richard Bullock from his position as Chair of the ALC. (Agricultural Land Commission)

The changes to the ALR come at a time when the Provincial Government has provided declining investment dollars in the industry as a whole. The tree fruit replant program has been a welcome investment that was eight point four million dollars over seven years. Not only has it been successful in the first year, there is so much initial uptake the program is over subscribed in year one.

Both the BCFGA and the BC Agriculture Council made it clear we prefer one zone for the equal protection of farmland. It is also true the government has made a decision to institute the policy.

Despite the current apple prices being lower, farmers are optimistic that the future holds great promise for more profitable varieties and are adjusting to meet demand.

At this time, no one knows what the future holds and what the criteria will really be for the protection of farmland, as increasing pressures for land use present them-

In fact there is the hope, that in addition to replant we can

find ways to operate a companion program to infill the vacant lands where orchards were pulled out more than five or even ten years ago. The proposed industry strategy is addressing those issues, along with finding funding for innovative new methods for production and storage of these new varieties. The BCFGA is a catalyst for bringing the industry together. The farmers, Summerland Varieties Corporation, the BC Cherry Association, the Sterile Insect Release Program, and the co-operative and independent packinghouses are working together to be part of the strategy that lays out the goals and objectives of the overall industry and its

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Summer 2015 41

many components. It has been developed over the past several months. This document will be the blueprint for speaking with government and financial interests to make the rejuvenation of the industry a reality. There is a great deal of buzz around niche market exports opening new avenues for BC high quality products and value added processing. One new product is the creation of BC Tree Fruits new line of Broken Ladder hard cider. This is not the sweet taste, it’s a dry cider. I personally like it a lot. This program will be of value to farmers. There are many projects being considered and as we tailor our strategy to fit both our needs and those of the people we are doing business with. We recently participated in a discussion with the Asia Pacific Foundation to see what opportunities there are. We have monitored the Federal Governments new and pending free trade deals to see how we can take advantage of niche markets. There is talk of and opportunity to sell some grades of apples into India. That work is on going.

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On the trade front, the US has lost its last appeal on Country of Origin Labeling (COOL). Now Canada can put punitive tariffs on cherries and apples, as soon as September, unless the US immediately retracts the COOL regulations that are hurting Canadian beef and hog producers. We are on the cusp of some very exciting times in the tree fruit industry. In the midst of optimism, there is uncertainty in areas of water and its allocations in times of possible drought, especially in a growing industry as the planting of acreage continues. The current realignment of the foreign worker programs resulted in questions of ongoing dependable supply. The SAWP program (Seasonal Agricultural Workers Program) is different, in that it has more than one layer of oversight. The program does come with problems however. The cost of airfares is high due to a lack of competition. This is but one example of minor irritants that have to be improved on. I tend to view it this way. Optimism is infectious, it brings out the positive problem solving skills of many. When you attempt to change anything for the better, it is fraught with uncertainty.

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Uncertainty is really an asset, in that it becomes another level of oversight that allows all the participants to take a second look, to make sure the right things are being done.

Is Your Marketing Message Being Delivered?

It is no longer enough to say “We can do this” - it is time to do it. We are now embarking in the direction of change. The difference is, with an industry strategy we are doing it together.  Fred Steele, Kelowna orchardist and President of the BCFGA

PRINT • ONLINE 250-769-2123 or info@orchardandvine.net www.orchardandvine.net

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42 Summer 2015

 PEOPLE TALK | BARBARA ASHTON

The Future of Recruiting is Going Mobile • 61% of social media visitors and 95% of social media applicants arrive in the first 7 days

• 60% of North Americans use a smart phone • 1 Billion job searches are done per month on a mobile phone

nyone who follows me on LinkedIn will see that I’m pretty pumped about social recruiting. And for good reason. By 2016 the number of mobile devices will surpass the world population! Not yet convinced? Here are 15 more gob-smacking statistics I’ve gathered to make my point about social ergo mobile - recruiting:

• 33% of job views come from a mobile device

• 9 in 12 job seekers say they will use their mobile device to job search in the next 12 months

• 23% of job applications come from a mobile device • 58% of job applicants come from social media vs website

• 10% of job board visitors do so using a mobile device AND they spend four times longer reading the ad than non-mobile visitors

• 81% of youth say they’d rather spend their last $10 on their phone than on food. Are we surprised?

• 72% of website viewers do so using a mobile device

• 60% of youth sleep with their mobile phone

• 64% use mobile devices to browse career, social and professional website

• 72% use a mobile device while in the office • 350 million mobile facebook users are twice as engaged as regular users

• 45% apply for jobs using mobile devices

Quality and Service … it’s Our Pledge.

• There are 200 million YouTube views on mobile devices every day And now, drum roll, here are my top 5 Do’s for making the most out of your social media / mobile recruiting campaigns: #1 Slow down to speed things up Use data to target the right job seekers. Take some time to research most likely geography, key words, behaviours, technologies and online activities to help you hone your ad and target your ideal candidates #2 Info-tain! When you see that jobs are being viewed but there is little uptake, it's time to re-

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script your message. Personalize your message to be sure your brand is clearly conveyed and that you are speaking the same language as the audience you want to hire. Put other employees on video (ideally those who typify the demographic and cultural fit you're after) to share their story and experiences around working for your company. #3 Engagement Trumps Click-Thru's Don't get caught up in counting click-thru rates as they are only telling one part of the story. Click-throughs generate traffic, but these number don't translate to effective messaging.

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Relevant content is what engages users. Develop not just your ad, but your ongoing follow-up conversations, using the same target data above. Then, even if you can't hire them all, you will keep them on the "I'm interested in futures" warming tray for the next time you're hiring. #4 Test, Test, and Test Again Are your career page and web site truly mobile responsive? With 1/3 of career site traffic coming from mobile, job seekers will want to experience the same across all their devices – desktop, tablet, phone - and it needs to be fast, clear and extremely user friendly. Getting there poses a whole new set of challenges for traditional website designers who aren't keeping up (and lots of them aren't). So be sure to test your site regularly on iPhones, SmartPhones and a variety of tablets to ensure you're not missing out on any of these mobile prospects. #5 Engage with Individuals Social media isn’t just about broadcasting to reach the highest number of people as frequently as possible, although it certainly can look that way. It’s about having two-way conversations. This means responding to and messaging with people individually, and keeping those conversations going. Social media recruiting takes far more time and effort than most people realize. You don’t have to do it all but by incorporating just one or two of these tips will give you pay-offs well worth the investment of your time and money. 

Business Advice That’s Rooted In Success Whether you’re a grower, manufacturer, distributor, retailer or investor in the food and wine industry, MNP offers tailored business services that go beyond traditional accounting. From vine to table and everything in between, our strategies help you control costs, streamline operations and cultivate opportunities for growth and expansion.

Barbara Ashton is a leading executive search consultant and social recruiter with close to 11,000 followers on LinkedIn. To learn more about what Ashton & Associates can do for your company visit www.ashtonassociates.com or call us at 800-432-6983.

NEXT ISSUE …

Supplier Directory

Contact Geoff McIntyre, CPA, CA, Business Advisor, B.C. Wine Industry at 250.979.2574 or geoff.mcintyre@mnp.ca

250-769-2123 or info@orchardandvine.net www.orchardandvine.net

44 Summer 2015

INNOVATION ISSUE • ADVERTISE • SUBSCRIBE www.orchardandvine.net

 THE WORD ON WINE | MILES PRODAN

Consumers Embrace VQA on Grocery Shelves as seafood, beef, fruits and vegetables.

t’s been over a month since the Wines of British Columbia Save-On-Foods South Point BC VQA Wine Store in South Surrey opened, and sales show that some of BC’s hard to source BC VQA Wines are among those that have benefitted most. BC's Wine Industry has made incredible advances in its first 25 years, winning awards and gaining respect around the world. However, the April 1st launch was an historical milestone for our industry marking the first time 100 per cent BC Wines (BC VQA), which are defined as grapes grown and bottled right here in British Columbia, have been available for sale alongside BC's other great agriproducts such

In the first month sales have been high, as consumers embraced the convenience of grabbing a bottle of BC's best wines as they pick up items for dinner or parties. Clearly, it just makes sense. Wines of British Columbia Save-OnFoods South Point is one of 20 BC VQA Wine Stores operating in the province. Although this is a small number of stores in the liquor retail environment, they represent over 7% of provincial BC VQA Wine sales - with the largest selection of BC VQA Wines in one place. Of the 500 wine labels carried at BC's first wine-on-shelves grocery store, half of them are not carried by the BC Liquor Distribution Branch's BC Liquor Stores due to limited production.

cence in grocery was issued.

Last year, the BC Government undertook a comprehensive review of the province's liquor laws, long lamented for their often inequitable treatment of producers, retailers and especially consumers. Of the 73 recommendations referred to Government by Parliamentary Secretary for Liquor Reform Richmond-Steveston MLA John Yap, there was an overwhelming response from consumers to see liquor sales in grocery stores.

This BC VQA licence used for Wines of British Columbia Save-On-Foods South Point in South Surrey was not a new licence, but simply an inactive one without a home. At any time one of the BC VQA licences becomes available, the BCWI will ensure that the licence will provide the best possible opportunity and return for our member wineries, as our mandate demands. However, the locations approved must demonstrate good fit for the community, and if it's a grocer, that they have a strong commitment to BC's local agriproducts. 

The BC Wine Institute recognized the opportunity to pair our premium quality wines with local agrifood products in a complimentary and convenient way through this channel, and our first farmdirect BC VQA wine store li-

Backyard Vineyards in Langley, a smaller producer developing award-winning wines stocked at Wines of British Columbia Save-On-

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In the early 1990s, the BC VQA retail sales licence was established to offer an outlet for BC's nascent grapegrowing agricultural industry, and of the 21 licences issued, 19 were in use at the time the law change came into effect.

Miles Prodan is President & CEO of the British Columbia Wine Institute.

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Summer 2015 45

Photo by Gary Symons

Golden Mile Bench – BC's New Appellation

The B.C. government has approved a request from the BC Wine Authority to establish a new sub-geographical indicator for the Golden Mile Bench in the Okanagan Valley wine region. Agriculture Minister Norm Letnick made the announcement at Tinhorn Creek Vineyard, one of 11 wineries that are included in the new Golden Mile Bench area.

For 20 years I have dreamed of this day – a day when the land we have always known to be special can be officially recognized on our label. Sandra Oldfield Tinhorn Creek Vineyards

The new sub-geographical indicator, or sub-appellation, is a first in British Columbia. It allows wineries that meet the requirements of the Wines of Marked Quality Regulation to label their wines Golden Mile Bench with a commitment to the consumer that at least 95% of the grapes in the bottle come from that specific area. Appellations are used to legally identify where grapes for B.C. wines are grown. The Golden Mile Bench region is on the prominent terrace escarpment southwest of Oliver that runs south from Fairview Road and near Highway 97.  Golden Mile Bench Wineries • CC Jentsche Cellars

• Inniskillin Okanagan Vineyards

• Checkmate Artisanal Winery

• Golden Mile Cellars (Road 13 Vineyards)

• Culmina Family Estate Winery • Fairview Cellars • Gehringer Brothers Estate Winery • Hester Creek Estate Winery

46 Summer 2015

• Rustico Farm and Cellars • Tinhorn Creek Vineyards • Willow Hill Vineyards.

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BayerCropScience.ca/Alion or 1 888-283-6847 or contact your Bayer CropScience representative. Always read and follow label directions. Alion® is a registered trademark of the Bayer Group. Bayer CropScience is a member of CropLife Canada.

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