VQA - BCWI License Mess Blows Up (Again)
mhicken September 4th, 2009
An ongoing issue between the operators of the VQA wine stores and the BC Wine Institute (BCWI) has surfaced again following the BCWI’s threat to revoke 2 VQA store licenses for allegedly not meeting sales quotas. Carol’s Wines in Coquitlam and Arrowsmith Wine Shoppe in Parksville have both been told their licenses will be pulled by the BCWI as of the end of September. The BCWI technically holds all of the licenses for the VQA stores which were given to it when it was originally established as the marketing authority and regulator for VQA wines. However, the BCWI is no longer the regulator of VQA standards (this was transferred to the BC Wine Authority) and now only represents about half of BC wineries for marketing purposes (although most of the big ones are members). Despite an obvious conflict of interest, the BCWI still holds the retail licenses and makes a good chunk of its revenue from a cut of VQA store sales.
Many VQA store owners are unhappy with the current setup and the Canadian Federation of Independent Business is acting on their behalf, having recently sent a letter to the Minister responsible for liquor distribution and licensing, Rich Coleman. The letter outlines a litany of complaints including allegations of: unilateral changes in the terms of the licenses, restricted product availability, increases in BCWI fees, administrative issues and the aforementioned conflict of interest. Most of the problems relate to the current patchwork structure of the retail licensing system which is long overdue for major reform. However, it is the individual operators of the stores that tend to get caught in the middle. Only a complete overhaul of the retail system will solve these issues in the long term.
Update: this issue has now been covered in more detail (with comment from the BCWI) in this story for the trade magazine, Wines & Vines.
