Wine Tax Soars in British Columbia

It's been suggested that the new tax will raise prices only by three per cent, but like the iceberg that grazed the Titanic, there's far more to this increase than meets the eye. Both the province and the federal government will benefit further because each levies an additional fixed tax on top of the new tax; the former levies a hefty 10-per-cent provincial sales tax on alcohol, while the latter collects the standard seven-per-cent GST.

More problematic for wineries and their representatives, who didn't receive the news until after business hours Friday, is how the increase will mess up highly sensitive retail price points. Case in point is the $9.99 bottle that will immediately jump to $10.38. If you haven't noticed, $10.38 is not a meaningful price point for any product in any retail environment.

It's possible that agents and their wineries will absorb the price increase by reducing the wholesale cost of their wine, but don't bet on it. Most will hike prices if only to adjust the final retail shelf price to a psychologically pleasing price point that ends in 95 or 99 cents -- further increasing the government's take and your cost.

No one mentions the trade, but restaurants will double the new prices at a minimum before adding PST and GST, putting even more funds in government coffers and further draining consumer pockets.

Interestingly, the latest tax increase just about matches the discount dished out in November to the pampered mini-monopolies operating as beer, wine and spirits stores. That's the powerful group of liquor-licence owners who were mysteriously granted additional licenses to sell beer, wine and spirits without any public input or competition before the government quashed privatization.

In my view, the new tax increase will do what all others have: It will force consumers to trade down, essentially paying more money for lesser-quality wine. As I've been saying for some time, the dumbing down of the B.C. wine drinker is in full force with no end in sight.

Alberta retailers must be grinning as they prepare for a flood of B.C. consumers and businesses that will take advantage of their privatized market where wine, beer and spirits are significantly cheaper and product selection is virtually limitless.

With the euro and the Australian dollar at all-time highs, the increase could not have come at a worse time for wineries already struggling to cope with B.C. retail prices that make little sense outside monopoly land.

The best advice I can give you now is to consider grabbing today's picks by Sunday because they will all be more expensive Monday -- and none will taste any better.

The Villa Maria Riesling Private Bin 2002, from New Zealand, boasts fruit from two distinct regions in Marlborough: the higher plains of the Awatere Valley and the old river bed of the Wairau Valley. Gooseberry, green apple skin and citrus rind mark the nose while crisp, green melon, butter and more citrus rind make up the flavours. Strangely unavailable in screwcap.

From Australia, the Yangarra Park Merlot 2001 opens with spicy, barnyard, cherry and raspberry jam aromas with a touch of earth. It is dry, round and supple on the palate with cedar, vanilla, and peppery flavours with some prune notes and elevated acidity in the finish. Soft, round and ready to drink without the usual herbaceous characters we see from down under merlot.

Further west, the Goundrey Homestead Shiraz 2002 offers similar spicy notes with white pepper, resiny aromas and a whiff of black fruit. Another soft, round, supple wine, its black cherry, rosemary and peppery cola flavours will appeal to many. A very solid, commercial style that represents good value for Western Australia.

The Salice Salentino Maiana Rosso 2001 is made from hand-picked, 30-year old negroamaro grapes grown in southern Italy. Look for a savoury, gamy, prune-scented nose streaked with licorice and dried figs. It's very soft on the palate with big spicy, peppery, chocolate mocha and Christmas cake flavours. Fine flavour intensity, but a touch acidic on the finish.

Further north, the Piccini Patriale Toscana Rosso 1999 offers a dry spicy, smoky licorice nose with peppery cherry, gamy aromas. Dry and acidic on entry with savoury, peppery, sour cherry and vanilla cola flavours, it's more old-style sangiovese than new. Serve with roasted chicken for best results.

The latest Chilean listing is Bisquertt Merlot Casa La Hoya Reserve 2000. It has a smoky, resiny, cardamom nose with cherry, green olive and mint. It's round and smooth on entry with sweet cherry fruit and herbal minty, leafy, smoky vanilla flavours. A solid everyday red with a touch of acidity and sweetness on the finish.

Wine: Villa Maria Riesling Private Bin 2002, Marlborough, New Zealand
Price: $17.95
UPC: 9414416216077
Score: 14.5/20
Comments: Gooseberry, citrus and green apple flavours make this a seafood pick.

Wine: Yangarra Park Merlot 2001, South Eastern Australia
Price: $14.95
UPC: 784938000669
Score: 15/20
Comments: Soft, round and ready to drink.

Wine: Goundrey Homestead Shiraz 2002, Western Australia
Price: $12.99
UPC: 9316369003066
Score: 14.5/20
Comments: Soft, round, supple wine.

Wine: Salice Salentino Maiana Rosso 2001, Apulia, Italy
Price: $14.95
UPC: 8007013200504
Score: 14/20
Comments: Spicy, peppery, chocolate mocha and Christmas cake flavours.

Wine: Piccini Patriale Toscana Rosso 1999, Tuscany, Italy
Price: $19.99
UPC: 8002793956467
Score: 13.5/20
Comments: Smoky, dry, old-style sangiovese.

Wine: Bisquertt Casa La Joya Reserve 2000, Valle del Colchagua, Chile
Price: $14.90
UPC: 722902000611
Score: 14/20
Comments: Cherry, herbal, minty, smoky vanilla flavours.