COLUMN: Wine and beer tax going up April 1, no joke

On April Fools Day, the joke is likely to be on us as the federal government is slated to increase its excise tax on wine and beer April 1. The bad news is that prices are going up, but the good news is that the Feds have decided to cap the hike at 2 per cent, instead of the scheduled 4.7 per cent.

On wine, tax already amounts to about 65% of the cost per bottle. The LCBO likes to say that the price per bottle depends on what the producers charge in the first place, and so the producers may decide to absorb some of the rise in taxes themselves. In effect, this puts any changes outside the control of the LCBO itself.

Theoretically, this hike should result in a 25 to 30-cent rise in what was a $20 bottle of wine.  Until the prices are actually changed, we can only speculate.

In all, this is a far less worrisome issue for us than the one that the Australian wine industry is facing, as Peter Hobson reported on March 9 on the Reuters website.

The world-wide market for wine, particularly inexpensive wine, is dropping significantly. Couple that with a dispute that saw the very important Chinese market for Australian wine sealed off since 2020, and the result is dire.

Hobson reported that as of mid-2023, Australia had about two full years of production – 2 billion litres – in storage. With some of it starting to spoil, producers are desperate.

In the Griffith area in New South Wales, famers are seeing up to a quarter of the vines being ripped up, over 20 million vines, about 8% of Australia’s total area of vineyard.

With prices for grapes on average less than half of what they were in 2020, at the low end it is even worse, with one grower indicating that some of his grapes sold for slightly more than $100 a ton.

When you consider that the average price of red grapes in all of California in 2022 was about $1500 Australian, you can appreciate the magnitude of the financial issue for the bulk producers.

It’s not sustainable. Many of the growers are third and fourth-generation Italians whose grandparents and great-grandparents planted the vines back in the 1950’s.

Fourth-generation farmer James Cremasco is replacing vines with prune trees. He believes that this is the end of family grape growers, with the big corporations taking everything over.

With white wine, the situation is not as critical, nor has the market soured in the same way for more expensive wines. Still, it’s a sign of the times, as younger people move away from wine in general, and older people cut down in consumption.

For now, we’ll count our blessings.

Speaking of blessings, Easter is just around the corner. If wine is part of your celebration, it is likely that dry or off-dry whites and lighter reds might be good choices to accompany turkey or ham.

A good Riesling would pair well with either turkey or ham. Rieslings can be quite dry or sweet, but the better examples at the sweet end are deftly balanced with a closing minerality and acidity that is lip-smacking refreshing.

Yalumba The Y Series Riesling 2021, $14.95, from South Australia, offers pear fruit and is “fresh and vivid… The palate has succulent acidity and delivers plenty of bright lemon flavour.” jamessuckling.com -90. (5 grams per litre of sugar)

Kung Fu Girl Riesling 2021, $18.95 – With this wine from Washington State, “lemon drop hard candy and ripe apricot flavours kick their way through a wall of electric acidity.”-  Michael Alberty, Wine Enthusiast – Best Buy – 91. (14 g/l)

Vineland Estates Elevation St. Urban Vineyard Riesling, $22.95, from Niagara, is new to the Vintages Essential Collection. The vines were brought to Ontario almost 40 years ago from the great St. Urbans –Hof vineyard in Germany’s Mosel. On the Natalie Maclean site, Trent Mayers had this to say: “The brilliant acidity allows it to pass for off dry even though the sugar level dictates it medium sweet. The nose is full of fresh lime, lemon, grapefruit, peach, honey and stony mineral and the palate adds on ripe apricot.” – 93. (39 g/l)

Loosen Brothers Dr. L Riesling 2022, $16.95, from the Mosel, is a perennial favourite. Writer Natalie Maclean, of the 2020 vintage wrote that it is “off-dry, medium-bodied and mouth-filling with ripe pear, apple, lemon curd, stone fruit and tropical fruit flavours, finishing long on a fine mineral note. – 89 (43 g/)

If you prefer a drier white, and not a Riesling, you might treat yourself to the Elena Walch Pinot Grigio 2022, $26.95, from Italy’s northern Südtirol-Alto Adige region. Elena Walch was featured in the March 2 Vintages magazine featuring Italian women wine makers. When her wine-maker husband, Werner, didn’t want to go in the direction of “hand-crafted artisanal wines”, Elena started her own winery in 1985.

Of this example, Alison Napjus recently wrote, “Creamy and well-meshed, this bright white offers yellow apple and pear fruit underscored by minerally hints of stone and saline, with notes of Marcona almond, pickled ginger and orchard blossoms.” winespectator.com -90.

In reds, the Tagaro Mancinello Nero di Troia 2021, $17.95, from Puglia should serve very well. The grape is less common than the region’s Nero d’Avola, and comes across as a little lighter – so medium-bodied.it also seems to have more complexity with some herbal notes and a tinge of vanilla sweetness on what is essential a dry wine, though one with ample fruit.

Michele Chiarlo Le Orme Barbera d'Asti 2021, $16.95, from the Piedmont region of Italy is drier in impact than the wine above, but not heavy. In the Wine Enthusiast, Jeff Porter wrote, “Aromas of juicy plums, macerated blackberries and intense purple flower notes dusted with savoury spice pour from the glass. Fresh and fruit-forward, on the generous palate it gives tarter cherry notes with wild herbs finishing with subtle notes of roasted earth and anise.” – 92

Sur de Los Andes Reserva Pinot Noir 2020, $18.95, from Patagonia in Argentina , could prove perfect this Easter: “Aromas of cherries, raspberries, redcurrants, black pepper, wild herbs and vanilla. Medium-bodied with sleek tannins and bright acidity. Juicy and crunchy with a lively, spicy finish.” jamessuckling.com – 92.

Vaucher Père & Fils Fleurie 2022, $20.95, is a Beaujolais, made from the Gamay Noir grape. The best Beaujolais have a single “village” source, and Fleurie is known for being made in a more delicate style. Ottawa writer, Rod Phillips commented: “The nose is very expressive and aromatic, while the palate is full of dark fruit, with some spicy top notes for good measure. The acidity is assertive and well-aligned with the fruit. This lovely wine is very dry, even verging on astringent, and it calls for food.” – 93.