Wine and beer producers in Canada were bitterly disappointed in April with the Supreme Court of Canada ruling in the Queen vs. Gerard Comeau case, which challenged restrictions on interprovincial trade.
The case began when Gerard Comeau of New Brunswick was ticketed and fined six years ago for bringing 14 cases of beer and three bottles of spirit across the border from Quebec. Comeau challenged the fine in court and won, but the battle over restrictions on interprovincial trade has been waged in subsequent appeals, ending in April with the ruling of the Supreme Court.
Wine, beer and spirits manufacturing groups had intervened in the case, arguing many provincial governments were violating the Canadian Constitution by limiting cross border trade. Among other things, the provincial laws in many provinces have crippled ‘Direct to Customer’ sales that are commonplace in the United States.
The BC Wine Institute says the Supreme Court missed an opportunity to open up provincial trade, and has damage the future growth potential of the wine industry.
"The Court's ruling today is disappointing for the BC wine industry." Said Miles Prodan President & CEO of the BCWI. "We will continue our work both directly and through the CVA with the federal / provincial / territorial governments' Alcoholic Beverages Working Group, industry, governments and the provinces to remove the barriers and allow winery direct shipping to customers across Canada.”
The Canadian Vintners Association is also lamenting the decision, saying Canadians should have the right to enjoy wine or other products from any other province in the country.
"We respect the Court's ruling but are disappointed at this missed opportunity to remove interprovincial trade restrictions," said Dan Paszkowski, President & CEO of the CVA. "Removing restrictions would have opened the door to allowing consumers to order wine for direct delivery to their home from any Canadian winery located in any province. We call that Direct-to-Consumer, it is something nine out of 10 Canadians believe should be permitted, and we now eagerly await the provinces making this choice available to their citizens.”
Wine producers say the current laws in many provinces have impeded the growth of Canada’s wine industry, and unfairly prevent consumers from purchasing the Canadian wines of their choice.
"This morning's ruling is disappointing for our industry. Every wine producing nation in the world has direct sales within its own country" said Tony Stewart, Proprietor & CEO of Quails' Gate Winery in West Kelowna, BC. "Canada needs to correct this so that we can start to create a level playing field with the rest of the world."
However, the Supreme Court of Canada is the highest court in the country, and the decision therefore cannot be appealed. The only avenue open to wine producers now is political action to convince provincial governments that open trade would be beneficial to the country as a whole.