Why do many Ontario VQA wines cost more than imported. Shouldn they be cheaper?
Well, the biggest reason is Canadian taxes. The LCBO sets retail prices for Ontario wine sold to consumers from the winery, the LCBO and from a restaurant wine list. Bulk discounts are not allowed to restaurants, so what you pay in a winery for a bottle of wine is the same a restaurant pays per bottle even when buying many cases of the wine. Also, consumers are demanding more ultra premium wines. Ontario growers have responded by planting premium varieties of vines. Problem is, it takes 5 years for a grape vine to mature before it can be harvested. Add to that one to three years for bottling and you have a lot of money invested before wineries start to get a return. Not to mention the cost of those French Oak barrels.
