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Wine drinkers in Ontario may soon notice a strange trend taking shape at their local liquor stores: more shelf space given over to bargain imports. Serious bargains, too, as in $7 and $8 for a regular-size bottle.
In a break with a controversial buying strategy that had placed increasing emphasis on premium brands, the Liquor Control Board of Ontario has dropped the price floor for new-product submissions, paving the way for a potential cornucopia of cut-rate quaffers costing as little as $6.95 from such value regions as Portugal, Australia and South Africa.
The about-face comes in the wake of consumer complaints received by the LCBO in recent weeks, many prompted by two columns appearing in The Globe and Mail that revealed an explicit policy by the government agency to promote premium-priced wines at the expense of emerging, high-value imports.
That policy was reflected in tender documents as well as the LCBO's most recent annual report, which vowed to "trade consumers up beyond the $8 price point for a 750-millilitre bottle."
"We're always assessing the marketplace, and we've listened to consumer feedback," said LCBO spokesman Chris Layton.
Mr. Layton added that while the LCBO recognizes there is a growing global preference among consumers for higher-priced, premium-quality wines and spirits, "at the same time, we do value [the under-$8 market] as an important segment." Portugal is likely to be a key source of some of the best buys. The LCBO has reduced its minimum selling price for wines from that country to $6.95 for a 750-millilitre bottle, down $3 from last year's minimum price of $9.95.
Similarly, wineries from South Africa and Australia, two other low-cost regions known for abundant bargains, can now submit products for consideration priced as low as $7.95.
That's $3 less than last year's threshold of $10.95.
The new $6.95 threshold also applies to "cellared in Canada" blends, which are bottled here and stocked on domestic shelves but typically are made with 70-per-cent foreign juice from low-cost countries such as Chile.
Mr. Layton stressed that the LCBO - which enjoys a retail monopoly on imported, bottled wines - has been making ad hoc purchases outside its formal tenders all along and last year sourced almost 60 new listings costing less than $10.
"If we see good deals from other places or beyond what's been presented in the product call, then we'll take advantage of that," he said. "We'll never pass up a good deal."
Bargain wines acquired under the new purchasing program issued this week, which applies the retailer's core (or so-called general-list) inventory, are expected to reach shelves over the coming year, starting as early as April.
The LCBO also sells a rotating selection of limited-release premium products through Vintages, its fine wine and spirits division, which Mr. Layton said may also choose to source under-$10 deals from time to time.
"There are certainly good wines out there for less than $10 a bottle, so we embrace the news that the LCBO will continue to consider them in listing decisions," said Ian Campbell, executive director of the Ontario Imported Wine-Spirit-Beer Association, a trade group for winery agents.
Chris Churchill, president of Churchill Cellars Ltd., which represents such popular Australian brands as Banrock Station and Hardys, said quality at all price points has improved significantly during the almost 20 years he has been travelling to wine fairs around the world and that $8 and $9 no longer means a gamble with mediocrity. "With better-trained winemakers and better technology, it's now difficult to find really bad wines, even in the less-than-$10 category."
Before any new bargain products can be accepted for sale, they typically must meet a number of other criteria, including quality-control tests and advertising commitments by the wineries to ensure the products don't languish on the shelves.
Ontario would still have miles to go before catching up to bargain-wine trends in the United States, where mass-produced brands such as Barefoot Cellars often sell in discount superstores and club outlets for as little as $4 a bottle.
A few years ago, U.S. grocery chain Trader Joe's caused a country-wide commotion with a line of wines nicknamed "Two-buck Chuck," surprisingly drinkable American-made varietals that sold for $1.99.
