By Julie Rosenberg,The Windsor Star, August 13, 2012

We were quite surprised to read claims in the Aug. 2 article suggesting the LCBO is not supporting small Ontario wineries. This is simply not the case.

Ontario VQA wines are thriving in LCBO stores, and VQA sales growth continues to outpace imports. VQA table wines are up almost 12 per cent this year, versus six per cent for imports. LCBO sales of all Ontario-produced wines in 2011-12 totalled almost $360 million, almost six per cent higher than the previous year.

LCBO VQA sales growth has doubled that of imports in the last five years for the following reasons:

• LCBO shelf space for VQA wines exceed sales.
• LCBO provides many promotional opportunities for Ontario wines at no or reduced cost.
• LCBO has buyers and sales staff dedicated to promote Ontario VQA wines.
• LCBO provides Ontario wines alone with an annual provincewide promotion every year.

Through the dedication and expertise of Ontario wineries and winemakers, they are also making better wines and doing a good job promoting them.

The LCBO offers 132 products from 12 wineries in the Lake Erie North Shore and Pelee Island regions, and last year their sales topped $56 million - a 15-per-cent increase over the previous year. Wines from Pelee Island are the top-selling VQA wines at the LCBO.

Here are a few more facts:

• When Ontario wineries sell VQA products directly to restaurants, they, not the LCBO, make the profit.
• Imported wines can't sell directly to restaurants - they must sell through the LCBO, where they're subject to full markups.
• Wineries don't pay to sell their wines at the LCBO. LCBO buys from the manufacturers and sells to consumers. LCBO markups, which generate revenue that benefits consumers, are paid by consumers.
• LCBO has many programs, such as Wines to Watch for smaller Ontario craft wineries with limited production, allowing them to sell their products in select stores to get exposure and build awareness for their brands while they build their business.
• Ontario fruit wines are not treated like imports, but are sold as Ontario wines at lower rates than imports.
• VQA rules are established by the wine industry, not the LCBO.
• Through its VQA margin enhancement program, the government pays millions of dollars a year in grants to Ontario wineries selling their products through the LCBO.
• Most regulation of the wine industry is not by the LCBO, and, where the LCBO is involved, paperwork is kept to a minimum and processed quickly by helpful staff.

Ontario VQA wines are prominently located at the front of most stores, and, over the next two years, the LCBO will add Ontario wine shelf space equivalent to 35 to 40 winery retail stores through its store expansion program.

The LCBO has and will continue to work closely with the Ontario wine industry and government to further consumer awareness and sales of quality VQA wines.