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The Truth About Interprovincial Wine Trade in Canada

“We Just Want What’s Fair”

Posted July 2, 2025 | By Ron Kubek, Owner – Lightning Rock Winery, Summerland, BC

On Canada Day, we were told we now live in a “One Canadian Economy.” Free interprovincial trade. No more roadblocks. That was the promise.

But as a winery owner in British Columbia, I can tell you: that’s not the reality.

Here’s a side-by-side look at what really happens when wine moves across provincial lines.

This week, I ordered wine from an Ontario winery and had it shipped to my door here in Summerland, BC. It arrived safely by Canada Post, with no markup, no provincial tax, no recycling fees, just the standard 5% GST. No interference from the BC Liquor Distribution Branch at all. The total was $356.56 for twelve bottles.

It felt simple. Reasonable. Like what free trade should look like.

But if I try to send a case of Lightning Rock wine to a customer in Ontario? It’s a whole different story.

We’d face a 71% markup from the LCBO, 13% HST, a container fee, and the threat of regulatory action unless we operate in a legal grey zone. I’ve offered to collect and remit HST or PST depending on the province, a simple, honest fix. But no government has acted.

Instead, provinces like Alberta have doubled down—adding a 15% ad valorem tax on top of the $4.11-per-litre bottle tax, bringing the total to roughly 28%. It’s a steep and punitive markup on BC wine, thinly veiled behind Latin to obscure its true impact.

The total cost to the customer almost doubles. That’s not a fair system; that’s a barrier dressed up as policy.

 

“I was charged just 5% GST when ordering wine from Ontario to my winery in BC. But if I ship wine to Ontario, I face a 71% markup, container fees, and 13% HST. That is not interprovincial free trade –that is a barrier dressed up as policy.”

– Ron Kubek, 

Owner, Lightning Rock Winery

This Impacts your choice too

If you’ve ever enjoyed a bottle of wine from another province and appreciated discovering something new, while supporting Canadian, this matters to you.

We believe BC wine should be treated like Canadian wine, not like a foreign import. You should be able to enjoy our wines no matter where you live, without paying 96% more because of outdated, protectionist policies.

What’s more, the BC government already allows Ontario wineries to ship directly to consumers here without interference. But the same freedom hasn’t been offered in return.

We’re not trying to play politics. We’re trying to make sense of something that doesn’t.

What Needs to Change

We’ve called on provincial leaders, and we hope they’ll listen. Here’s what we’re asking for:

✓ End excessive liquor markups on Canadian wine

✓ Let wineries collect and remit HST or PST across provinces

✓ Allow direct-to-consumer shipping from all Canadian wineries, not just the ones in the “right” province

✓ Honour the promise of a “One Canadian Economy”

Why This Matters

At Lightning Rock, we’ve already fought through a year of devastation, losing 100% of our 2024 crop to freeze. We invested over $160,000 of our own money to keep going. We didn’t ask for subsidies. We didn’t increase production. We simply tried to survive, and keep our team of mighty nine employed.

Now, we’re fighting again, this time for fairness in our own country.

“This isn’t about politics. It’s about common sense, consumer rights, and the future of Canadian wine.”

We’re not asking for special treatment. We’re asking for the same rules to apply both ways. Because if Ontario wine can come into BC without markups, the same should be true in reverse.

Want to Help?

Share this post with your friends, especially those outside BC.

Contact your local representative and ask why Canadian wine still can’t move freely across the country. We’ve included a handy letter you can use below.

Order from a Canadian winery or if you can, come see us in person.

Thank you for standing with us — and for believing that good wine, like good policy, should be shared.

✉️ Letter to your local representative template.

Navigating Challenges and Looking Ahead at
Lightning Rock Winery

RON KUBEK - OWNER & CEO

This year has been one of the most challenging we’ve ever faced in the BC wine industry. The cold weather has wreaked havoc on our vineyards, causing an almost 100% loss of fruit. However, amidst this devastation, there is a silver lining: we estimate that only about 25% of our vineyards will need replanting. But it will take time to recover.

 

Ensuring Consistent Quality for Our Customers

We want to reassure you that we have about three years’ worth of inventory in the winery. This means we can continue to provide you with the wines you love while we navigate these challenges and plan for the future. Your experience with Lightning Rock Winery will remain consistent, and the quality of our wines will not be compromised.

 

Exploring New Horizons: Washington State Vineyards

Tracy and I recently visited vineyards in Washington state, just across the border. We were delighted to find many wonderful grapes that share a similar terroir and climate to what we have in Summerland. Washington also offers logistical simplicity and a number of qualified growers eager for new partnerships. While it’s not a perfect solution, it aligns closely with our standards and goals.

Our primary goal is to maintain the high standards you expect from us. If we decide to source grapes from Washington, rest assured that our winemaker, Sebastien, will craft the wine here at our winery, ensuring that the essence and quality of Lightning Rock wines are preserved. We will be completely transparent about the origins of the grapes, detailing which vineyards they come from so you always know the truth.

 

Adapting and Overcoming

In recent years, we increased production by purchasing grapes from other vineyards in the Okanagan in addition to using our own. Unfortunately, this option isn’t viable this year, and it may take 3-5 years for our vineyards to recover to their pre-2023/2024 levels. By carefully selecting grapes from Washington, we believe we can continue to produce the exceptional wines you have come to love.

 

We Value Your Feedback

We understand that this is a significant change, and we want to hear from you. How do you feel about us sourcing grapes from Washington State under these circumstances? Your feedback is crucial as we make these decisions to ensure the survival and success of our operations.

Please contact me directly at 250-488-6055 or email me at ron@lightningrockwinery.com. We look forward to your thoughts and to continuing our journey together, even through these challenging times.

 

Ron Kubek
Owner & CEO
Lightning Rock Winery

Navigating Regulatory Challenges: A Winery's Perspective

RON KUBEK - OWNER

At Lightning Rock Winery, we pride ourselves on crafting exceptional wines while navigating the intricate regulations governing our industry. Recently, we found ourselves embroiled in a regulatory maze highlighting the challenges small businesses face in the interprovincial wine trade. Let me share our journey and advocate for a more straightforward regulation approach.

Our story begins with a simple desire: to provide our customers in Alberta with access to our wines through direct-to-consumer shipments. As a small winery, I was eager to comply with all relevant laws and regulations. However, our efforts to engage with the Alberta Gaming, Liquor and Cannabis (AGLC) and seek clarity on the regulatory framework were met with silence and frustration. Despite repeated attempts, I found ourselves unable to decipher the rules that governed our operations, a struggle that echoes the sentiments of many small businesses grappling with regulatory ambiguity.

In our quest for clarity, I reached out to the Minister of Service Alberta and Red Tape Reduction, seeking answers to our pressing questions. While the Minister defended Alberta’s regulatory stance, citing the need to protect the integrity of the province’s liquor market, his response failed to address the disparities in regulations between Alberta and other provinces, such as British Columbia.

One glaring asymmetry I encountered was the ability to order wine from Alberta liquor stores and have it shipped to us. At the same time, as a producer, I was prohibited from doing the same within Alberta. This disparity underscored the need for a more coherent and fair regulatory framework that applies equally to all stakeholders in the industry.

Our journey reflects the broader need for harmonized regulations that facilitate, rather than hinder, interprovincial trade in Canada’s burgeoning wine industry. As our sector gains recognition on the global stage, policymakers must prioritize regulatory coherence to unleash its full potential. Streamlined regulations would benefit businesses like ours and empower consumers with a greater choice and access to diverse wine offerings from across the country, painting a promising future for the Canadian wine industry.

Moving forward, we remain committed to advocating for clarity and transparency in interprovincial wine trade regulatory frameworks. By fostering collaboration between provinces and streamlining regulations, we can unlock our industry’s full potential, bolster economic growth, and promote consumer welfare.

In conclusion, our journey highlights the urgent need for regulatory reform to facilitate a vibrant and inclusive interprovincial wine trade. As policymakers grapple with the complexities of regulatory oversight, I urge them to prioritize coherence and transparency to pave the way for a more prosperous and dynamic wine industry.

Thank you for joining us on this journey. Together, let’s navigate the regulatory challenges and raise a glass to the future of Canadian wine.

Ron Kubek
Owner, Lightning Rock Winery

Farewell Beloved Viognier

RON KUBEK - OWNER & CEO

 In 2017, we became the lucky stewards of Elysia Vineyard, a steep-sloped, super windy, eastern-facing site, perched on the Summerland Bench, above Okanagan Lake on bedrock and glacial deposit.

Viognier has been planted at the tippy top of this vineyard since 2006, and although it is one of our yummiest and best selling wines, these vines have been operating at about 50% efficiency for years.

This is a warm weather grape, originating from the southern regions of France. With the intense cold in our Okanagan Valley region over the last two winters, we knew these vines were going to struggle.

At the beginning of February when the snow first starts to melt, our team collects cuttings from each block to examine the health of our vines and predict yields for the coming season. A handful of plants showed promise of life, but as we moved through the rows, we were met with 95% bud loss – devastation.

After a few years of debate, we decided it was time to pull them up. This fan favourite will undoubtably be deeply missed from our portfolio.

Our Owner, Ron Kubek, says, “It’s always tough to make these calls, but it’s part of farming and the renewal process, and we will be better for it. We’re excited to start again.”

And, pardon the pun, but everything happens for a Riesling.

This spring, we will replant with Riesling, a more winter-hardy grape that will better suit this resilient block for years to come, and (fingers crossed) bequeath us delicious wines to share with you soon.

To celebrate the life of our beloved Viognier, which has graced our portfolio since the winery’s inception to it’s newest release, we’re offering the final bottles in a farewell vertical. Packs are super limited – Order here.

We hope you will savour every last sip and share with the people you love the most.

Please share your favourite memory about our beloved Lightning Rock Viognier in the comments below!