B.C. wineries look to improve market share as restaurant sales plummet

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At Singletree Winery in Abbotsford, an innovation introduced during the COVID-19 pandemic has been so popular that it’s staying even after physical distancing ends.

It’s helped Singletree buck a provincewide trend of lower sales of B.C. wines in the hospitality/restaurant sector linked to the precipitous drop in tourism.

In mid-January, Singletree on Mt. Lehman Road opened two Di Vine Domes, the winery’s version of dining bubbles. The translucent geodesic domes can accommodate between two and six people at a time. The Enchanted Forest Dome, for example, has a twig chandelier and a cedar table; the Canadian Cabin Dome, a cowhide rug and buffalo plaid blankets.

Cost is $50 per person. Depending on the package, it includes a mix of in-store flight tastings, and wine purchases and charcuterie. On Fridays and Saturdays, tastings and a three-course meal by Chef Adrian Beaty is $75.

Debbie Etsell, owner of the family operated winery with her husband Garnet, said the response has been so “overwhelming” that she’s had to bring back all her staff. The domes have been used by people to celebrate anniversaries and birthdays. They’ve even seen a few marriage proposals.

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“It’s been really fun to come up with an innovative way to meet our guest’s needs and the domes have definitely done that for us,” said Etsell, the winery’s marketing coordinator. “The domes are a really interesting experience to have. We will be keeping them.”

Etsell said Singletree has seen a drop in international travellers but an increase in local customers from the Lower Mainland. She thinks locals who might have gone south to the Napa Valley in previous years have been staying closer to home and spending their money in B.C. wineries such as Singletree.

Miles Prodan, president and CEO of Wine Growers B.C. (before Feb. 1 it was known as The B.C. Wine Institute), said that overall wine sales during the pandemic have increased in B.C. What hasn’t is the share of the market for B.C. wines.

“Our market share is not up as much as it should be,” he said by phone from Kelowna.

Customers, he said, have become more price-conscious. If they’re in a liquor store looking to buy wine, they’re tending to buy an $8 bottle from Spain rather than a $15 bottle from B.C.

“Over time during COVID-19, people have been going for the less expensive wines,” he said. “Import wines have been growing more during the pandemic than B.C. wines.”

Statistics released by Prodan at the B.C. Wine Industry Insight Conference show that the pandemic has led to a drop in sales of B.C. wines in the hospitality sector including restaurants of more than 50 per cent, a slide continuing in 2021.

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Overall market share of B.C. wines has dropped by almost four per cent, while import sales have increased by just under one per cent.

International and non-resident travel to B.C. has dropped from 19 million during a nine-month period in 2019 compared with just above one million for the same period in 2020. The B.C. Business Council has described the pandemic-related decline as “precipitous” and “eye-popping.”

Some wineries have offset a drop in restaurant sales by expanding online offerings through wine clubs, Prodan said.

The winery experience has also changed. Because people now have to make reservations to taste wines, they’re getting a more in-depth, curated wine experience. Prodan expects that new way of doing business to continue after the pandemic.

“Those who did come for tastings were leaving with more wine per person to make up for the lack of numbers,” he said.

He expects 2021 to be a slow and cautious year, especially since travel restrictions are likely to remain in place through the summer.

“I think it will be a while before people start jumping on a plane going anywhere,” he said.

“When things open up and people start travelling, going to a winery will be high on their list.”

Lulie Halstead, co-founder and CEO of Wine Intelligence based in London, England, told conference attendees that the pandemic has accelerated the move toward domestic wines among Canadian drinkers. She said research has shown that there is “a stronger connection for B.C. wine among both female and older drinkers, and an opportunity to build B.C. wine awareness among retailers.

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B.C. wine facts:

Number of grape wineries in B.C.: 284.

Number in the Fraser Valley: 26.

Number of vineyards in B.C.: 929.

Area planted: 4,152 hectares (10,260 acres).

Annual contribution to provincial economy: $2.8 billion.

Top three white varieties by area planted: Pinot Gris, Chardonnay, Gewürztraminer.

Top three red: Merlot, Pinot Noir, Cabernet Sauvignon.

Number of official wine regions: nine (Okanagan Valley, Similkameen Valley, Fraser Valley, Vancouver Island, Gulf Islands, Thompson Valley, Shuswap, Lillooet, Kootenays).

Number of weekly wine drinkers in Canada: 12.1 million.

In B.C.: 1.9 million.

— Source: Wine Intelligence, Wines of B.C.

kevingriffin@postmedia.com