An Introduction to the Fruit Wine Business in Alberta

Definitions for fruit wine vary slightly, but it is generally described as the alcoholic fermentation of the juice of sound, ripe fruit, fruit juices or concentrate, other than juice from fresh grapes.

A number of fruit or related species on the Prairies can be used to make fruit wine. These include strawberries, raspberries, black currants, saskatoons, sour cherries (Mongolian and Nanking), wild black cherries (chokecherry), apples/crabapples, plums, red and white currants, and rhubarb (commonly viewed as a fruit).

The trends look promising for products such as fruit wine. A 2004 report from Agriculture and Agri-Food Canada (AAFC) on the Canadian wine industry¹ and recent Statistics Canada reports indicate that there is room for growth in the domestic market. Annual wine consumption in Canada has increased between 1991 and 2004 from 10.06 litres per capita to 13.31 litres per capita, for the population over 15 years of age.² However, Canadian per capita wine consumption is very low compared to other major wine-producing countries such as France or Italy, where per capita consumption is between 50 and 56 litres.³

With this room for growth, the wine industry has increased capital expenditures by approximately 12 per cent annually between 1995 and 2005.⁴ Growth in this sector has continued from previous years. The growth is attributed to the industry's ambitious growth plans, and some large wineries are making acquisitions into other lines of alcoholic products such as fruit wines, ciders and hard lemonade.

Recent data reveals that from 2000 to 2004, the value of fruit wine imports has continued to rise at an average rate of 12 per cent.⁵ While these figures represent larger scale wineries, this shows growing interest in non-traditional alcoholic beverages. They do not account for the many cottage-sized wineries that mostly focus on domestic sales, selling at the farm gate.

Cottage wineries are becoming more popular and AAFC recognizes that there are successful links between the wine industry and tourism in British Columbia's Okanagan Valley and the Niagara Peninsula region for Ontario. These links bring economic benefits and wine tours build an appreciation for the sophistication of Canadian wineries and the quality of the wine.

Lang Research⁶ conducted a study to look at the interest in wine and culinary tourism across Canada and the United States (US). Approximately 33 per cent of Canadians said they were interested in these vacation activities. This compared to 38.4 per cent in the US market. In Canada, individuals showing moderate to strong interest were likely to come from British Columbia, Alberta, Ontario and Quebec. The affluent segment of society was the most attracted to this type of tourism, which makes up 24.5 per cent of the Canadian and 27.4 per cent of the US adult population.

Regulations

Alberta Gaming and Liquor Commission
The Alberta Gaming and Liquor Commission (AGLC) issues Class E licences to cottage wineries for the manufacture of wine. The regulations stipulate that fruit wine can be sold through two main channels. Wineries can sell through the orchard/winery (farm gate) as off sales to the general public and to special event licensees. The winery can also sell, through the AGLC to other licensees with a Class D licence, and may apply for an endorsement, allowing them to provide a delivery service to the public. Wineries can only sell their own manufactured wines at the winery and not other cottage wines or other liquor products.

To be considered for a licence, a cottage winery must meet the following requirements for fruit wine production. They must:

• have an annual production capacity of 1,500 litres in year one, increasing to a minimum of 4,500 litres production capacity by year five
• have a minimum of five acres of land in fruit production, with a winery located on the orchard site
• produce fruit wine from a minimum of 75 per cent fruit grown on land controlled by the farmer, with up to 25 per cent fruit from another grower in Alberta allowed for blending of fruit production shortfall vinify 100 per cent of wine production on site
• have fermentation, maturation and storage tanks with a minimum of 200 litres capacity each
• have adequate storage tanks to accommodate the annual production capacity, including products requiring aging

• a fruit crusher and fruit press
• various sizes of wine tanks (1,000 litre, 500 litre and 200 litre)
• a plate filter with pump
• sterile filter housing and cartridge
• a wine bottle filler and corker
• a labelling machine (as the operation expands)
• a heat gun, or table top heat shrinker (as the operation expands)
• hoses
• cooling equipment (as the operation expands)
• laboratory equipment
• initial winemaking supplies

• researching the market potential for your location
• identifying what you need to do to consistently market your product
• planning your equipment needs and building layout ahead of time
• getting advice on fruit wine making from a winemaster
• producing a high quality wine using quality control standards
• knowing your costs so you can sell at a price to make a profit
• making contacts with local businesses such as ag tourism operators
• getting to know other fruit wine producers, both in Alberta and B.C., to learn from their experiences
• marketing your product through wine writers to get exposure in newspapers, magazines and books