The Slow Demise of Alberta’s World-Class Wine Industry

by Jennifer Sarpe

For decades, Alberta has been the envy of Canada when it comes to wine and spirits. Since privatization in 1993, our province has enjoyed an unmatched selection, thanks to a system that supports small businesses, independent importers, and boutique retailers. Unlike government-run models like Ontario’s LCBO, Alberta’s semi-privatized approach has allowed wine lovers to access unique, family-run wineries and sustainably produced wines—not just the big brands found everywhere else.

But that’s now at risk.

Recent policy changes by the Alberta Gaming, Liquor and Cannabis Commission (AGLC) threaten to dismantle the very system that made our wine industry thrive. Here’s what’s happening.

Starting April 1, 2025, Alberta will introduce a tiered markup system that disproportionately impacts wines retailing over $16. Until now, all wines were subject to a flat tax of $4.11 per litre ($3.08 per 750mL bottle). The new system introduces additional percentage-based markups for wines wholesaling above $15 per litre ($11.25 per 750mL bottle):

  • 5% markup on wines invoiced between $15 and $20 per litre

  • 10% markup on wines invoiced between $20 and $25 per litre

  • 15% markup on wines invoiced above $25 per litre

What Does This Mean for You?

  • A wine that currently retails at $30 per bottle will see an additional 10% markup, increasing the final price by roughly $3 to $4 per bottle.

  • A $75 premium wine will face a 15% markup, adding $10 or more per bottle.

  • Consumers—not producers, importers, or retailers—bear the full cost of this tax. Small businesses do not profit from these increases.

The effects go beyond price hikes. This tax disproportionately impacts small, independent producers who farm their own vineyards. Lower-cost wines that avoid the tax are often mass-produced at an industrial scale. Sustainable, environmentally responsible wines will be hit the hardest, making it more difficult to support winemakers who prioritize ethical farming.

Even more frustrating? This tax applies only to wine—not to beer, spirits, or other alcoholic beverages. Given that wine is the least likely category to be abused, this feels like an arbitrary and unfair burden on those who appreciate wine beyond its alcohol content.

If you enjoy premium wines, I strongly recommend purchasing them before April 1, 2025, to avoid these price hikes.

More Changes That Cost You More

Higher Storage Fees for Small Importers

As of Last April the AGLC’s “Extra Slow Moving” (ESM) storage fee triples costs for wines selling fewer than 100 cases per year, jumping from $2.04 to $6.12 per month.

This unfairly punishes small importers and boutique selections—meaning unique wines like Assyrtiko from Santorini or Blaufränkisch from Austria become riskier to carry. Meanwhile, mass-market brands like Barefoot and Yellow Tail remain untouched. Fewer small-batch wines mean less variety for consumers and more dominance from big-box brands.

U.S. Liquor Ban: Small Businesses Left Behind

On March 6, 2025, Alberta suspended all U.S. liquor imports overnight, with no warning or support. Small Calgary Owned local importers relying on American wines lost everything instantly, and some have already announced shut down.

Consumers now face higher prices and reduced selection, as a 25% federal tariff on U.S. liquor adds to the strain. Despite the impact, the Alberta government has offered no aid—another blow to independent businesses and wine lovers alike.

As of now, the Trump administration has once again delayed the implementation of certain U.S. tariffs until April 2nd. However, we have yet to hear whether the Alberta government will adjust its policies in response or provide any flexibility for importers to navigate these ever-challenging changes.

Are We Becoming an LCBO?

Alberta’s wine industry relies entirely on imports, but record-high shipping costs, a weak Canadian dollar, and inflation have already made it harder than ever to source great wines. Now, with new tax hikes, storage fees, and import restrictions, the situation is going from bad to worse.

This isn’t just about price—it’s about eroding choice. These policies push Alberta closer to a centralized liquor system like Ontario’s LCBO, where bureaucrats, not consumers, dictate what’s on the shelves. Is that the future we want?

At Vine Styles, we’re committed to bringing you great wines and exceptional service—no matter what. But with these changes, you may see fewer selections and higher prices as small importers and boutiques are squeezed out. We don’t love getting political, but with changes like these, it’s impossible to stay silent.

Your continued support means the world to us, and it helps keep independent wine culture alive in Alberta. If you’d like to advocate for more choice, here are some ways to take action:

📢 Email the Ministry of Service Alberta at ministersa@gov.ab.ca to share your concerns.

📢 Support local wine shops and small importers—your purchases directly impact what wines remain available.

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