BC Government Reaches Agreement that Re-Opens DTC Wine Sales to Alberta

A DTC wine war between the government of Alberta and  BC wineries has been rectified by an agreement between the two provinces which was announced in a July 16 news release. In late January 2024, some BC wineries received a letter from the Alberta government informing them that Alberta would stop accepting all inbound shipments of the BC vintner’s wine until the winery stopped selling directly to the province’s consumers. Alberta took issue with the practice because direct-to-consumer wine sales meant that no markup was being charged to the seller for selling into the Alberta market.

The BC government announcement was thin on details, mentioning only that “B.C. wineries can again ship their products directly to Alberta consumers” and that BC and Alberta had signed a “memorandum of understanding”.

According to the Edmonton Journal article on the deal, the agreement is for one year at which time it will be re-evaluated. The details of the agreement will be worked out in the coming weeks. Some BC wineries said they were open to paying a tax on DTC wine they sell in Alberta. BC Premier David Eby said those details are being worked on.

As reported by CBC news, Wine Growers BC estimates that DTC wine accounts for less than three percent of total wine sales, consisting mainly of premium BC wines that aren’t available through Alberta Gaming, Liquor and Cannabis. One West Kelowna vintner told CBC that the loss of direct-from-Alberta buyers represented a $100,000 per month loss in sales.

Is There a Double Standard?

For several years, BC liquor licensees have expressed concern over bootleg booze being sold online by Alberta liquor retailers directly to BC consumers. As we reported in July 2023, the concern grew louder as the illegal practice worsened in a climate of high inflation, cheaper Alberta liquor and inexpensive shipping. Alberta liquor retailers may be making millions by skirting the law, taking away potential revenue from BC liquor licensees, and tax revenue from the BC government. While the Alberta government keeps a watchful eye on sales of BC wine directly to Alberta consumers, is the BC government taking similar steps to curtail online liquor sales from Alberta directly to BC consumers? In fairness, we hope it has been part of the discussion.

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