The Positives of the Pandemic: Buying Imported Wines in Ontario

Restaurants were among the first businesses to be locked out, and the last to reopen, during the COVID-19 pandemic. The pandemic saw many eating establishments permanently close their doors and others pivot quickly to focusing on take-out and prepared meals. Restaurants were clearly in survival mode and governments were scrambling for solutions. By the summer of 2020, the united lobbying efforts of Restaurant Associations and Private Wine Importers generated a response from the provincial government in the form of new legislation. Restaurants were permitted to sell beverage alcohol off-premises with take-out meals during this time as an attempt to help recoup revenues lost as a result of empty dining rooms.

Wine Importers, on the other hand, were not among those forced to close but the void of the hospitality sector was clearly felt. During 2020, the LCBO’s Private Import Warehouse experienced record high inventory levels as a result of restaurant closures. For Wine Importers the significance of having an e-commerce presence became a necessity and it is evident that many agencies have retooled their online platforms and strategies.

Today, there are many more Ontario Wine Agents selling wine online compared to just two years ago. As a result, competition for search engine rankings and ad words have skyrocketed in the wine sector. This is a big win for Ontario’s consumer choice and accessibility! Although Private Import Wines have been available to purchase in Ontario for decades, they have been out of the mainstream public view for two main reasons:

The LCBO dominates the retail landscape, and
Wine Agents are not permitted (licensed) to sell wine by the bottle.

Innovation and Opportunity Abounds

Discovering new ways to operate during the forced shut-down became a reality for restaurants. Initially they began selling their wine inventory to free up cash but as communities rallied and supported their locals, restaurants began restocking their wines. Soon the Bottle Shop phenomenon took off. Vacant dining rooms were shelved full of jarred, canned, packaged food items and, most importantly, wine bottles. It became common for “Bottle Shop” and “Food Market” signs to be seen hanging from restaurant and café windows. The key to the popularity of the Bottle Shop is the opportunity to shop for unique Privately Imported Wines from around the world by the bottle, on par with shopping at the liquor stores. These are wines that were previously only found in restaurants and could only be bought by the case from the Importer.

Every restaurant in Ontario offering Privately Imported Wines works with a preferred list of importers that they have developed working relationships with over time. Collectively, the restaurant Bottle Shops offer a unique and diverse selection of wine providing consumers with an unparalleled selection and choice in their neighbourhoods across Ontario. Bottle revenue became so integral to these local businesses that by the end of 2020 the Ontario government passed legislation making take-away alcohol sales permanent for restaurants. A huge win for Ontario consumers, restaurants and Wine Importers alike!

As distributors, part of the core service Wine Agents offer is door-to-door delivery. Contactless, and safe home delivery proved to be a catalyst for attracting new private client business to Wine Agencies during the pandemic. In the summer of 2020, the provincial government responded to Importers’ requests for greater access and appeal to consumers with the ability to offer mixed cases of wine and satisfy a demand for home delivery, something the LCBO retail system could not support.

Accessibility and Choice

In the summer of 2021, restaurants were finally allowed to add indoor dining to their patio operations and Private Imported Wine sales regained momentum. Wine agencies are once again buzzing, eagerly anticipating market consistency. In December 2021, the provincial government introduced new legislation to support the hospitality sector by eliminating the 6% mark-up and implementing a 10% discount on alcohol purchases for licensed establishments commencing January 1, 2022. For years, Wine Importers in Ontario have been advocating for a wholesale pricing model for alcohol distribution. This new 10% discount is a step in the right direction and is instrumental for private wine retail to flourish while providing diverse choices for consumers in Ontario.

Consumer access to imported wines has greatly benefitted from the changes implemented during the pandemic. Access to imported wines has never been better and will continue to improve as Importers and restaurants learn to adapt and bring the province greater choice and accessibility to these wines.

A great way to hear about promotions, special offerings and limited time offers, when available, is to sign up to your favourite private wine importer’s mailing list or newsletter. You can buy imported wines in Ontario, anytime, anywhere, online!