Alberta's Flat Tax Gets Inflated

The flat tax applied to every bottle sold in Alberta will rise 75 cents per 750mL-bottle, to $3.33.

There will be pressure to raise prices almost immediately but, given the huge margins wineries, distributors and retailers are carving up in Alberta it's hard to believe they could possibly justify any increases. The smart ones will probably just eat the tax rather than disturb the status quo.

Living next door to B.C. where the tax is astronomical, Alberta retailers tend to use all the pricing room we so generously give them thanks our humongous wine taxes. You have to wonder how a wine selling for $20 in B.C. that has been marked up 117 per cent and then whacked another 10 per cent PST could possibly be priced at $18 or $19 in Alberta where the tax is a flat $3.33.

As I say, rather than disturb a dream market, my guess is producers and distributors will absorb the tax and still be far better off than anyone else in the business in Canada. That said, the point is not lost that the recession is finally affecting the wine market in Canada.

You know you are in a highly regulated alcohol market when the global recession is only just beginning to affect wine in B.C. Despite all the gloomy economic news that has rained down on us for nearly a year, the wine business tends to work on a longer business cycle and the slowdown, at least in Canada, is only just arriving.

Christmas and the Wine Festival have put off the inevitable, but selling wine the rest of 2009 is going to be a feat. I'm told restaurants with considerable wine cellars will be drawing upon their inventories for months to come and, as they do, wines normally purchased to replace them are piling up at wineries and retail stores. If sales remain flat through the next harvest, that will leave a surplus of bottles to be dealt with and possibly a shortage of space to bottle the 2008 vintage. That does not begin to address record-size crops that reflect a decade of record plantings, all due to arrive this fall.

Local producers are nervous, as evidenced by the reaction to a line in a recent Globe & Mail story that suggested B.C. wines were not good value. That statement had local wineries frothing, and the owners of JoieFarm who made the statement quickly explaining to the media by email how expensive it is to make wine in B.C.

Clearly, any downturn in the economy cannot be good for a niche wine industry (read B.C.) selling relatively expensive wine (emphasis on relatively), but it can be mitigated by improved marketing and storytelling. Think Bordeaux, Burgundy, Rhone, Napa Valley, Barossa Valley, Mosel -Saar-Ruwer, Barolo and more, all of which seem to dodge the "expensive" tag most years. The challenge the Okanagan has, and which is now abundantly clear, is to produce a level of quality that is commensurate with its price.

As for the coming flood of cheap international wines sure to arrive to satisfy nervous retailers both government and private, I'm already tired of tasting them.

This week we look at six new releases priced to get your attention.

Casa de Campo Eco Malbec 2008 has a supple palate with light tannins. Look for tobacco, cherry, savoury, spicy, mineral, meaty flavours flecked with orange. The finish is a bit tart, calling for grilled meat or chicken. Made from organic grapes.

From Portugal, the Cortello Vinho Tinta Castelão -Aragonês 2006 is an Estremadura red complete with smoky, peppery, sausage aromas and spicy, black olive, licorice, black cherry, flavours. A rustic red but with balance. Serve with hamburgers.

Another wine made with organic grapes is the Emiliana Etnico Limited Edition Reserva Shiraz - Merlot - Mourvèdre - Malbec 2007. The entry is fresh. The palate is round with light tannins and sappy cassis, cedar, coffee, peppery, fruit flavours. Served medium-rare beef dishes.

The Fortius Valcarlos Navarra 2006, a red wine from Spain failed to deliver. Its dry, somewhat rustic palate is hard to embrace with its herbal, cedar, smoked meat y flavours that finishes dry and tart. This one really needs food to help it out.

From reds to white, the really good news is the Castillo de Monséran Viura 2006 from Spain. This albariño-like white is fresher and brighter and slightly more exotic than last year's edition. Love the orange, melon and pear fruit on the mid-palate and the delicious acidity that brightens up the back end. Simply a delightful summer sipper that works well with simple fish dishes or with light tapas. Great value, but the cork has to go.

We finish with a serious bargain: Domaine du Tariquet Sauvignon 2007 from Gascony, France. Fresh as a daisy under screwcap, this is a recession-proof white you should not pass up. The nose is a mix of bright "sauvignon" fruits - kiwi, passionfruit, lemons and limes with a floral, mineral, notes and crisp acidity. From oysters to curries and almost anything in between, enjoy this delicious white.

CASA DE CAMPO ECO MALBEC 2008, ARGENTINA

Price: $16

UPC: 07790762050629

Score: 86/100

Remarks: Tobacco, cherry, savoury, spicy, herbal, orange peel flavours.

CORTELLO VINHO TINTA 2006, ESTREMADURA, PORTUGAL

Price: $14

UPC: 005604575000301

Score: 85/100

Remarks: A rustic red for grilled lamb.

EMILIANA ETNICO LIMITED EDITION RESERVA SHIRAZ - MERLOT - MOURVEDRE - MALBEC 2007, VALLE DEL COLCHAGUA, CHILE

Price: $15

UPC: 7804320365954

Score: 85/100

Remarks: Made from organic grapes.

FORTIUS VALCARLOS NAVARRA 2006, NAVARRA, SPAIN

Price: $13

UPC: 008437001838905

Score: 83/100

Remarks: Cedar, sausage meat, smoky flavours. A barbecue red.

CASTILLO DE MONSERAN VIURA 2006, CARINENA, ARAGON, SPAIN

Price: $10

UPC: 03378639007125

Score: 87/100

Remarks: Love the orange, melon and pear fruit on the mid-palate.

DOMAINE DU TARIQUET SAUVIGNON 2007, GASCONY, FRANCE

Price: $15

UPC: 3359880123314

Score: 88/100

Remarks: As fresh as it gets with kiwi, passion fruit, lemons and limes.