1. Sip & Share
Presenting key findings from Cowichan’s Wine, Craft Brewery, Cider and Distillery Report
Economic Development Cowichan |Blue Grouse Estate Winery | January 24, 2019

2. Today’s Schedule: Presentation of EDC Report
Presented by: Janae Enns, Economic Development Cowichan
Overview of UVIC Wine Research
Delivered by: Dr. John Volpe, University of Victoria
Recent Activities and Next Steps
Sub-appellation Status Update
Delivered by: Bailey Williamson, Blue Grouse Winery

3. Cowichan’s Wine, Craft Brewery, Cider and Distillery Report
Presentation Overview:
Purpose of the report
Study methodology
Overview of sectors
Challenges/Opportunities of each sectors
Follow-up activities

4. Purpose of Report
Aligned with Goal 2 of EDC’s Strategic Plan : Sector Development
Three-fold objective:
Opportunity to connect with local beverage providers
Explore the opportunities and challenges associated with the sectors
Identify strategic partnerships for moving forward

5. “The beverage sector has strong ties with the future of agriculture and tourism and is playing an increasingly important role in positioning our region as a desirable place to live, work, visit and invest in” (Cowichan’s Wine, Craft Brewery, Cider and Distillery Industries, 2018)

6. Methodology Phase 1 Phase 2 Phase 3
Research was conducted between April-August 2018
Phase 1
Created a database of all the beverage providers in the region
Phase 2
Conducted in-person interviews (21 in total)
Phase 3
Analysis of data collected through interviews

7. Cowichan’s Wine Industry

8. Cowichan’s Wine Industry Overview
BC’s wine industry contributes $2.8 billion annually to the provincial economy
$512 million in associated wages
$245 million in wine-related tourism
2nd largest wine region in BC
Oldest vineyards date back to 1860’s
Evolved into a vibrant wine industry, 14 active wineries

9. Individual Business Challenges

10. Industry Challenges

11. Opportunities for Collaboration

12. Cowichan’s Craft Beer Industry

13. Cowichan’s Craft Beer Industry Overview
To be considered a BC Craft Beer:
Must produce less than 160,000HL
Must be 100% B.C owned
Must be 100% independently owned
Craft sales reached $206 million in BC, 2016
18% of all beer sales in BC
144 craft breweries in BC, over 100 opened up in last five years
3 craft breweries currently located in Cowichan

14. Individual Business Challenges
Access to skilled workers
Lack of housing options
Access to public transportation

15. Industry Challenges Contract Brewing Competitive Pricing Environment
Company contracts a larger brewery to produce, market and distribute beer on their behalf. Results in price discrepancies undercutting independent operations.
Competitive Pricing Environment
Companies are lowering prices and offering aggressive deals creating pricing norms that are difficult to make a profit.

16. Policy Challenges BC LDB licensing and regulatory requirements
Lack of coordination between levels of government
Increases complexity around meeting requirements
Occupant load and building restrictions
Too stringent and not reflective of safety concerns
Gaining access to government liquor stores
Distribution model is designed for larger operations
“Earning a distribution listing has become akin to a lottery win for new brewers” (Shore, 2017)

17. Joint Marketing Initiatives
Opportunities for Collaboration
Sharing Equipment
Research
Joint Marketing Initiatives

18. Cowichan’s Craft Cider Industry

19. Cowichan’s Craft Cider Industry Overview
BC’s craft cider industry has roots in Cowichan
Merridale Cidery was BC’s first estate cidery and certified craft distillery
No craft designation for cideries
BC liquor legislation adopts a two-tier approach for licenses: land-based or commercial
BC Farm Crafted Cider Association recently formed
Two cideries in Cowichan with a third in development

20. Interprovincial Trade Barriers Storage, Production and Equipment Costs
Challenges
Interprovincial Trade Barriers
Entering The Market
Storage, Production and Equipment Costs
Access to Employees
No Craft Designation
Market Saturation

21. Opportunities for Collaboration
Accessible Digitized Soil Maps
Festivals and Events
Shared labelling and bottling storage facility
Destination Map

22. Cowichan’s Craft Distillery Industry

23. Cowichan’s Craft Distilleries Overview
Two streams of distilleries in BC: commercial and craft
Craft Designation:
Produce no more than 50,000L a year
Use 100% BC agricultural products
Fermentation must be completed onsite at the distillery
BC craft designation is most restrictive in North America
Produce beyond 50,000L, required to mark up products by 160% when sold off-site
3 craft distilleries operating in Cowichan
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24. Challenges Interprovincial Trade Barriers Island Location (Isolation)
Marketing and Packaging
Securing Booths at Venues (Farmers Markets)
Access to Employees
50,000L annual Limit
Island Location (Isolation)

25. Work with Local First Nations
Opportunities for Collaboration
Branding
Work with Local First Nations
Events/Workshops

26. Summary of Recommendations
All Sectors
Support promotional efforts around each of the sectors
Support marketing efforts
“Cowichan Made” displays
Unified messaging – identify a strategy for collaboration
Work with local restaurants to introduce programs to support locally made beverages
Cohost entrepreneurial workshops
Explore the potential for housing structures to be developed on ALR land

27. Thank you! Janae Enns, Special Projects Assistant
Economic Development Cowichan
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