Canada Switches to European Grapes

OTTAWA - Oct 17/06 - SNS -- Canadian vineyards have been switching from native species to wine quality hybrids imported from Europe, according to a recent review of the industry by Statistics Canada.

The switch to wine quality grapes (viniferaand French hybrid varieties) from native (Labrusca) grapes matches the growth in the wine industry.

In fact, Statistics Canada says the industry had the 11th highest growth rate among the 215 industry groups between 1997 and 2005. During this period, its real gross domestic product increased at an average annual rate of 7.1%, more than double the rate of growth of 3.0% for the nation as a whole.

The industry is, however, relatively small, accounting for only 0.03% of the economy-wide gross domestic product in 2005. It employed close to 2,500 persons in 2004, which represented only 0.14% of all manufacturing jobs.

The study -- "From the vine to the glass: Canada's grape and wine industry," published today in the Analysis in Brief series -- examines the transformation in the Canadian grape and wine industries, and the evolution of wine sales in Canada from 1993 to 2005.

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