Canadian Wine Industry Sees Unprecedented Surge Amid Trade Dispute
While global wine consumption faces a downturn, Canada's domestic wine producers are experiencing what industry leaders describe as "explosive growth" following trade restrictions on American products. This remarkable trend emerges from liquor board data across Canada's four key wine-producing provinces, where local wines have captured increased market share as U.S. competitors temporarily disappeared from shelves.
Provincial Sales Figures Reveal Dramatic Increases
The numbers tell a compelling story of shifting consumer preferences. In Ontario, VQA wine sales have skyrocketed by more than 56 percent since American products were removed from Liquor Control Board of Ontario (LCBO) shelves in March 2025. This move came in response to U.S. tariffs on Canadian goods, creating an unexpected opportunity for domestic producers.
Marie Cundari, senior buyer of Ontario wines at the LCBO, observes: "We've always supported local, and that's been a growing category for us, but I think with customers now really wanting to support local, this is definitely that moment for our local industry to shine."
The trend extends across the country:
- Quebec wines experienced a 54.5 percent boost at the Société des alcools du Québec (SAQ)
- Nova Scotia wine sales increased by 19.5 percent to $6 million in 2025's second quarter
- British Columbia wine sales reached $159.7 million in the third quarter, representing a 19.5 percent increase from the previous year
Winemakers Embrace Opportunity Amid Uncertainty
Winemakers across Ontario, British Columbia, Quebec and Nova Scotia are capitalizing on this unique moment to introduce Canadians to distinctive regional flavours produced at the northern edge of viable grape cultivation. However, this success comes with apprehension about the eventual return of American wines to store shelves.
Aaron Dobbin, president and chief executive of Wine Growers Ontario, calls the situation "absolutely unprecedented," particularly given the challenging global context where the alcohol industry lost approximately US$830 billion over four years due to changing consumption patterns.
"Thankfully, Ontarians have been supporting Ontario wines as they're supporting all kinds of Ontario products," says Dobbin. "Our goal is that once the U.S. wines are back, we will have proven to Ontarians the value and the quality of Ontario wines, and they will stay with purchasing our wines."
Breaking Down Interprovincial Barriers
The growth extends beyond provincial borders, with Canadian wine sales increasing by 19 percent nationally since the LCBO stopped selling U.S. products. Ontario wines have particularly benefited, with VQA red wine sales increasing over 60 percent, followed by white wines at 54 percent. Other categories showing double-digit growth include:
- VQA rosé (+30 percent)
- Icewine (+16 percent)
- Sparkling wine (+15.5 percent)
Notably, alcohol was excluded from the Canadian Mutual Recognition Agreement on the Sale of Goods implemented in November 2025. Dobbin suggests that eliminating interprovincial trade barriers "could really be a game-changer," especially for smaller wineries seeking to expand their reach across Canada.
The LCBO confirms seeing "a large boost in demand" for local products over the past year, with Ontario and Canadian wines driving this remarkable growth. As winemakers navigate this unexpected opportunity, they remain focused on building lasting relationships with Canadian consumers who have discovered the quality and diversity of homegrown wines during this unique period in the industry's history.
