Niagara winery acquisitions bring stability amid changing industry landscape

Many people in the wine industry will say fluctuations are expected, and with the introduction of the grocery market and new consumer demands, being able to pivot and offer something new is a survival skill.

While there doesn’t seem to be any concern among local wineries regarding the state of the industry, the number of wineries in Niagara is a good thing and corporate support gives stability.

One industry expert says the issue isn’t that there are too many wineries, but that not enough are making money.

“The wine industry in general is not growing,” said Sylvain Charlebois, director of Agri-Food Analytics at Dalhousie University.

At the beginning, says industry expert Charlebois, it was all about money, developing a sector and an industry.

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Now, he says, owning a winery is more of a trophy — as part of a business portfolio.

“Making money is not really a priority,” said Charlebois. “It’s like owning a professional sports franchise nowadays — you pay a lot of money just to say you are a sports franchise owner.”

“I don’t think there’s too many wineries,” said Sue-Ann Staff, the president of Sue-Ann Staff Estate Winery. “I don’t think there’s too much happening. This is really great and healthy for the industry.”

Staff says there are many reasons why someone would allow their winery to be sold: retirement, no plan of succession, or looking for partnership.

Staff says the more wineries there are, the better.

“The purchases that have happened, and acquisitions kind of add a bit more stability, because it brings some really big players to our industry, and showing that it’s credible,” said Staff.

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Over at The Good Earth in Beamsville, general manager of The Good Earth Food and Wine Co. Matt Loney says wineries used to be a place where you came, you toured, you tasted and that was it.

Now, you need to be much more to the consumer, he says, adding food and dining options, entertainment and event planning, and working with industry experts to help with that.

“The Good Earth was actually another winery that was acquired by a company named Carmen’s, so they’re a local family-owned, independent company out of Hamilton,” said Loney.

The Good Earth is one of eight companies acquired by Carmen’s, says Loney, but he’s not concerned that this means the end of independence in the industry.

“Carmen’s is pretty aware of all the things that make The Good Earth special, and they are cognizant to preserve those fantastic elements.”

The wineries CHCH News spoke with said moving forward, they realize that this is the nature of the business and are willing to adapt.

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