In light of studies and recommendations made by the University of British Columbia (UBC) and KEDGE’s Wine & Spirits Academy, the wine industry acted and the Canadian government decided on March 12th to prohibit the use of the statement “Cellared in Canada” (CIC wines) on the labels of wine bottled in Canada but with wines mainly or completely produced abroad. This label, which is mostly used by large Canadian wineries, has been in force since 1995. It has sparked much controversy on the Canadian market because it was a source of considerable confusion for consumers.
“This collaboration with UBC demonstrated KEDGE’s ability to use its expertise to serve international players”, highlights José Milano, Director Genral of KEDGE Business School.
The bottles marked “Cellared in Canada” were displayed on “national shelves” and sold in liquor stores as Canadian products despite being mainly or entirely made up of foreign wine. They created real confusion for consumers and will soon disappear, following the recent changes made to the wine labelling regulations.
The stakes were very high because CIC wines generated considerable profits for production companies. These wines, which were often sold for less than CAN$10 (around €6), made up around two-thirds of sales (in volume) of “national” wine on the Canadian market.
The rapid rise in the import of bulk wine to Canada (which today counts among the top ten global importers of products from Australia, Chile, Spain…), can be explained by the popularity of these wines sold in original 1.5-litre and larger formats.
KEDGE Business School has been working with the University of British Columbia for several years on the issue of positioning Canadian wine on the international markets. Roger Sugden, Dean of the management faculty, described this mission as “a key part of UBC’s role in impacting the socio-economic development of industries in Canada and its regions”.
These bottles will now feature the label “International blend from imported and domestic wines” for blended wines with 51% or more imported content and “International blend from domestic and imported wines” for blended wines with 51% or more domestic content.
According to Jacques-Olivier Pesme, Director of KEDGE’s Wine & Spirits Academy and investigator of these recommendations with the University of British Columbia, “After more than twenty years of status quo, these new regulations herald greater transparency in terms of labelling and brings Canada closer to international standards”.
The KEDGE Wine & Spirits Academy is based in Bordeaux, worldwide capital of wine. With a presence at the heart of the various bodies of the wine-producing industry, relaying information and influence, the Wine & Spirits Academy not only has the aim of training managers in the wine and spirits sector but also of supporting changes in the industry by offering help in decision-making, by developing local & international projects to provide economic support to stakeholders and by channelling momentum.
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About KEDGE Business School:
KEDGE is a leading French business school with four campuses in France (Paris, Bordeaux, Marseilles and Toulon), three abroad (Shanghai, Suzhou and Dakar) and three partner campuses (Avignon, Bastia and Bayonne). The KEDGE community is made up of 12,600 students (including 25% coming from abroad), 183 professors (including 44% coming from abroad), 275 international academic partners and 57,000 alumni around the world. KEDGE offers 36 programmes in management, designed for students and industry professionals. It also provides tailor-made educational programmes for businesses at national and international levels. KEDGE Business School is AACSB, EQUIS and AMBA-accredited, and is a member of the Conférence des Grandes Ecoles. It is also recognised by the French government, with labelised programmes, and has obtained the EESPIG label. KEDGE was ranked 40th by the Financial Times in the European Business School ranking and 37th globally in its Executive MBA ranking.
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