Alberta - Pricing and Market Analysis
Alberta is currently the only privatized market in Canada (1993). While not overly complex and representing a smaller share of wine sold in the country, Alberta is a foot hold for many brands looking to enter Canada because of the consumer. An oil producing province, many collectors exist in Alberta, quietly and often privately enjoying sought after world-class wines.
The AGLC is the governing body in the alcohol industry in Alberta. There are 5 offices in the province and a warehouse in St. Albert (suburb of Greater Edmonton). The AGLC markup is flat based on alcohol volume and the process for inventory straightforward. Allocations and exclusive offerings are available for limited product allowing your distribution partner to hone your wine sales as needed and create demand for your products.Unlike the rest of Canada, retailers benefit from universal whole sale pricing and also have the ability to select their own portfolios and price as the market dictates, assets that the product chain does not have in other provinces. Alberta's wine industry is unique in its approach... as the AGLC quotes on their website
"The Alberta experience demonstrates that liquor retailing can be responsibly and well managed by the private sector, with government continuing to carry out its regulatory responsibilities and collecting revenue from liquor sales for use in public programs." :0
As of late, a few key chains have started to take the lead in wine sales and inventory with a big box store type business model. However, the small privately owned private shops still provide the brand communication and hand-sell that many suppliers desire, especially those that seek to build brand recognition needed in the premium or mid- price on-trade business. A strong on the ground sales team will keep your brand top of mind through traditional sales appointments and visits to retailers and on premise establishments. A few very prominent retailers and restaurateurs have very impressive portfolios and the oil business keeps the private collectors a viable channel for world class wines and tastings. DTC/delivery is also prominent for reaching customer where exclusives, end of inventory or extra shipments are attractive to retailers with a strong wine club (one retailer has a particularly strong en primeur portfolio!).
Mark-up rates
Wines with alc/vol <=16% : $3.91
Wines with alc/vol >16% : 6.56
Excise rates:
Wines with alc/vol <7%: 0.295
Wines with alc/vol > 7%: 0.62
Customs duty:
Wines - sparkling Champagne - Free
Wine - Still, dessert/fortified**
- up to 13.7%: 0.0187, for Aus/NZ 0.0187
- 13.71% to 14.9% 0.0468, for Aus/NZ 0.0275,
- over 14.9% free
***Chile and USA are exempt from Customs due to NAFTA
The AGLC has a Non-registered product pricing calculator available for suppliers and agents to calculate invoice to wholesale, and wholesale to invoice pricing.
