Thirty Bench, a highly touted and quality-oriented winery with approximately 40 hectares of prime vineyards, was recently sold to Andres Wines, one of the two giants of the Ontario wine industry. The founders Dr Muckle and professor Papageorgiou are still running the small winery, which they sold. Andres bought the winery as much for its good reputation as for its prime, mature vineyards. EastDell, Birchwood, Thomas and Vaughn and Lakeview wineries, were also sold to a holding company, more to take advantage of economies of scale than anything else.

Small wineries have very limited access to the distribution network of the L C B O with approximately 600 stores. This is because the monopoly demands steady supply in large quantities and small wineries simply cannot comply. Mark-ups are very high, and boutique wineries prefer to sell their wines in their stores to take advantage of the $ 1.50 per bottle distribution cost the L C B O charges. Andres and Vincor, the two dominant winery organizations of the country maintain large distribution networks acquired over decades by taking over small establishments.

Three decades ago Ontario had fewer than 20 wineries. The number has increased to 90, but chances are, by the end of this decade there will be fewer independently owned wineries. It is sad to say that liquor control boards in all provinces, except Alberta, have become revenue sources for provincial governments and profit-oriented, ignoring their prime mandate of orderly alcoholic beverage distribution. They now prefer merchandise, (yes this is how they treat wines) profitable, fast-moving wines and other beverages to domestic wines. Also, out of province wines are subjected to taxes as imports, something no other country in the world does.

Small wineries can only be successful if owners inherit large tracts of land, and maintain other sources of income, i.e Hernder Estates operates a wedding hall, and sells grape juice in bulk, Vineland Estates operates a fine restaurant and B and B, Cave Spring Cellars owns a restaurant and a hotel, and Angel's Gate's owners wisely decided to hang on to their money-managing day jobs.

Wine production depends on the vagaries of nature, particularly in northern climes. In Niagara, 2003 was write-off, and before then, there were many more. Entrepreneurs must contend with cost problems and pricing (a bottle of wine at $ 10.00 in retail nets $ 3.97 to the winery that includes bottle, cork, label, labour, marketing and prime material costs). The only hope a boutique winery in Ontario has is that it attracts enough visitors that buy significant quantities, (and this is an achievement in itself), and land prices continue to escalate!

Presently neither is taking place.

Now he consults and writes to increase wine, beer and liquor awareness. He conducts seminars and would be pleased to consider your requests. To peruse the list of his published books and order please contact him at hirayrberberoglu_3@sympatico.ca

Hryar Berberoglu www.littlefatwino.com