Trade tariffs pop the cork on Canadian wine boom

Canadian wineries are riding a wave of unexpected growth after provincial bans on U.S. alcohol shifted buying habits closer to home.

When Canadian provinces pulled U.S. alcohol from store shelves earlier this year, the response from local wine producers was swift. Sales spiked. Hiring followed. From Niagara to the Okanagan, small and medium-sized wineries began investing in growth.

A patriotic push to “Buy Canadian” — sparked by retaliatory tariffs from the United States — created a rare moment for Canada’s wine industry. Provinces including Ontario, Quebec, Alberta and British Columbia removed American alcohol products from provincial distribution. That move opened the doors for more local bottles to hit the shelves.

In a press release from the Liquor Control Board of Ontario on 1 October, local product sales were up 23 per cent year-over-year. Ontario VQA wines — made entirely from Ontario-grown grapes — saw 67 per cent growth overall, with VQA red wines up 80 per cent.

“The ‘Buy Canadian’ movement has given Ontario VQA wine producers an opportunity to get our products into the hands of new consumers and our soaring sales show that they are falling in love with us,” said Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, in the release.

Homegrown producers, national attention

In British Columbia, the trend mirrored Ontario’s gains. Jeff Guignard, president and CEO of Wine Growers British Columbia, reported that wholesale wine volumes increased by 6 to 10 per cent over the past year. Local tourism also picked up, with more Canadians visiting vineyards in the Okanagan, Similkameen Valley and on Vancouver Island.

Carolyn Hurst, co-owner of Westcott Vineyards in Ontario’s Niagara Region, said her winery doubled sales within six months of the ban. She attributed part of that success to gaining access to restaurant wine lists previously dominated by U.S. labels.

“We have a Chardonnay and a Pinot Noir that’s similar [in] price point [with] a couple of California and Oregon products,” Hurst told CBC Radio’s Cost of Living. “That’s where we have found that there’s been a huge uptake on our products.”

The Liquor Control Board of Ontario (LCBO) responded by launching more local listings. With U.S. bottles removed, shelf space opened up. Under its Support Ontario banner, the LCBO introduced products from 30 additional craft wineries. Vice-president of Merchandising Abhay Garg said customers can now spot Canadian-made wines by the maple leaf symbol next to each product.

In Quebec, the surge was pronounced. Between late March and mid-August, the Société des alcools du Québec reported a 58 per cent increase in sales of locally produced wine.

For Rob Taylor at Wine Growers Canada, the momentum is encouraging. Speaking with CBC, he said Canadian wine still holds less than 20 per cent of the Ontario market and under 30 per cent nationally. In Quebec, it accounts for just 0.5 per cent. The goal is to reach 51 per cent of domestic wine sales. That growth, he noted, will depend on expanded access across provincial lines.

In June, ten provinces and one territory signed an agreement to allow direct-to-consumer alcohol sales across Canada by May 2026. Under the deal, interprovincial trade barriers—long a hurdle for Canadian wineries—will be lifted. That means a bottle of Nova Scotia’s Tidal Bay or an Okanagan red could soon be available in downtown Toronto without import restrictions.

Supporting local work and wine

Canadian small and medium-sized businesses are central to this shift. From grape growers and cellar hands to delivery drivers and restaurant workers, the ripple effect from rising wine demand is landing in payrolls and production lines.

New listings and greater visibility for Canadian wine mean more than just shelf space—they mean jobs. More wineries are hiring. Some are adding restaurants. Others are scaling production to meet demand. It’s a timely case study of what happens when policy and consumer sentiment align to support local business.

While some provinces have since lifted their bans, the early impact on Canadian producers is clear. The shift in buying patterns has reintroduced many Canadians to wine made closer to home. For customers like Sarah Nelson—who moved to Canada from the U.S.—the discovery has been eye-opening.

“It actually expands your mind to what wines can be,” Nelson told CBC. She said she plans to apply for Canadian citizenship this fall.

The job market response is measurable. The numbers speak for themselves — and so do the wine lists.