Ontario grape growers reach two-year deal on pricing

Note: Grape growers in Ontario and the Ontario Wine Council agreed on a two-year deal for grape prices. This is a news released issued today.

Grape Growers of Ontario, Wine Council of Ontario, and Winery & Grower Alliance of Ontario reached an agreement on April 25th on grape pricing for 2012 and 2013.  This agreement also provides for price increases and an extension of the plateau pricing framework for two years.

“Concluding price negotiations for two years creates the opportunity for growers and wineries to focus on our business of growing and selling more Ontario wine,” said Bill George Jr., Chair of Grape Growers of Ontario.  “Although not inclusive of all varieties, the moderate price increases show we are collaborating for the benefit of both wineries and growers.”

The agreement includes the following price increases:

  • Red Hybrid: 1% 2012; 1% 2013
  • White Hybrid: 2% 2012; 1% 2013
  • White Vinifera: 1.5% 2012; 1% 2013

All other varieties will remain at 2011 prices except Icewine and Late Harvest which will be negotiated prior to July 31, 2012.

“We are glad that we were able to agree to prices for the next two harvests,” said Ed Madronich, Chair of the Wine Council of Ontario.  “We are encouraged by the honest dialogue from the discussions both inside and outside of this process and are confident that these have encouraged a further growth in the level of trust between growers and wineries.”

“This agreement demonstrates the importance of grape growers and wineries working closely together to grow the entire industry,” stated Anthony Bristow, Chair of Winery & Grower Alliance of Ontario.”It provides stability for the industry and allows us to focus on increasing the sales and market share of great Ontario wines.”

Ontario’s grape and wine industry is a key economic driver in Ontario, with over $610 million in wine sales annually, particularly in the province’s designated viticulture areas: Niagara Peninsula, Prince Edward County, Lake Erie North Shore, Pelee Island and Ontario’s emerging South Coast wine region.