Study deconstructs Ontario's VQA

Wines & Vines, August, 2007

Brock University hosted Bacchus at Brock 2007, a conference in early June that brought together industry insiders and researchers from the world over. One research paper concerning the Vintners Quality Alliance (VQA) of Ontario, stood out.

Developed in 1988 to make Ontario's wine industry competitive, the VQA system is the Province of Ontario's version of appellation control.

According to McGill University Ph.D candidate Laura Ierfino-Blachford, today the control system is discordant. Her paper illustrated that administering the VQA has been framed into a contest between small independents and large conglomerates. She stated that, "Even after the standard was regulated by the province, contesting frames existed, which ... led to a divided industry and a need for a truce between opposing groups."

"Truce" is the operative word, for what continues to transpire over the operation of the VQA system seems like a battle.

"Mainstream and niche players used contesting frames, collective action and political behavior to diffuse the VQA standard in a way that would better suit their interests," Ierfino-Blachford said. Mainstreamers "vied for hybrid adoption of the standard, where some wines followed the rules while others did not." Niche players "vied for full adoption."

The VQA system established production parameters and set up a taste panel to bequeath the VQA stamp. As long as it remained self-regulated by the small independent producers, the system seemed to work rather well. Over the years, however, small wineries began to become large wineries. Then, some of these growing wineries were grabbed by conglomerates.

By 2000, the VQA had become a governmentally regulated system--all sizes of wineries were obliged to follow its mandates. Canadian growers could not produce vinifera grapes at the same low price as labruscas. Large wineries turned overseas for product, forcing many growers to start their own niche wineries and become adversaries.

Wineries that make wine with imported content are not allowed to use "Product of Ontario," "Made in Ontario," or any other similar designation on the label, Laurie Macdonald, executive director of VQA Ontario, told Wines & Vines. "The term 'Ontario' can only be used on the label of VQA wines, all of which have 100% Ontario grape content," Macdonald said. "Federal rules define 'Product of Canada' as at least 75% domestic content, and 'Cellared in Canada from imported and domestic wines' as less than 75% domestic," she explained.

Nevertheless, niche wineries want the rules tightened, Ierfino-Blachford maintained. As the argument continues, the players seem more entrenched in their positions. Estate wineries formed a cooperative to lobby against the influence of large wineries. Large wineries have used their economic clout to influence regulators.

Ierfino-Blachford believes that the tension between local and global market pressure is likely to settle the arguments, but as a researcher, she offered no solutions.