Latest data shows that Canadian wine consumers are favouring Australia
Since early 2025, the restrictions on the sales of alcoholic products produced in the United States (US), has caused large changes in the dynamic of the Canadian wine market. This Market Bulletin will summarise the latest restrictions on the sales of US products and what impact this has had on sales of Australian wine.
The latest wine sales data across the four largest Canadian provinces is now available to Australian wine grape levy-payers and exporters, through a newly released report.
The latest restrictions by province
On February 1 2025, the US announced 25% tariffs on Canadian goods, which came into effect on 4 March 2025[1]. In response, Canada announced a 25% tariff on wine and other alcoholic beverages produced in the US. Provincial leaders went further and banned the importation of alcoholic beverages from the US[2]. As mentioned in a previous Market Bulletin, beverage alcohol sales in Canada are controlled by provincial governments, with all 13 provinces operating government-run systems except for Alberta which was privatised in 1993. In government-run liquor stores and convenience outlets, these products were removed from shelves, significantly limiting consumer access outside of online and depot channels. Moreover, strict regulations in Ontario restricted access of US products from leaving Liquor Control Board of Ontario (LCBO) warehouses[3], making it difficult for agents to sell them to bars and restaurants. Retailers in Alberta were allowed to continue to sell through their existing stocks but not replenish them. Private retailers in British Columbia proceeded in a similar fashion, where they were allowed to continue to sell through existing stock which was available to purchase from LDB[4] wholesale distribution channels[5], but not replenish them from red states[6].
However, since June 2025, Alberta has announced that they will resume accepting US alcohol products[7]. Quebec has also allowed its liquor board to put select US products back on the shelf from February 2026 that are reaching their expiration date[8].
Canadians drinking more Canadian and Australian wine
The various bans left Canadian businesses looking to fill the gap left by US wines, opening the opportunity domestically as well as to other countries such as Australia. According to Trade Data Monitor, Canada imported 66 million litres of wine from the US in the year ending February 2025 (17 per cent share), ranking the U.S second by volume, behind Italy. A year on, this decreased by 73 per cent to 18 million litres (5 per cent share) (see Figure 1). In comparison, imports from other countries, including Australia, increased: Italy was up 4 per cent to 77 million litres, France was up 9 per cent to 66 million litres and Australia was up 6 per cent to 65 million litres.
Figure 1: Top Canadian wine imports by volume for year ending February 2026
Source: Trade Data Monitor (TDM)
This was also reflected in the Canada Wine Sales report for March 2026, which was recently revised with data from EzFocus. The new report shows Quebec SAQ[9] (government run) and Quebec grocery (private) separately. Australian wine mostly increased by volume and value in the top 4 provinces. By volume, Ontario recorded the highest increase at 32 per cent, Quebec SAQ was up 4 per cent, British Columbia was up 5 per cent and Alberta was up 11 per cent. The exception to this was Quebec grocery, which was down 7 per cent. Similarly, most other top country of origins also experienced growth in these provinces, except for the United States which was down between 80 and 100 per cent in Ontario, Quebec, and British Columbia and 40 per cent in Alberta.
Consequently, there were some slight increments in Australia’s and Canada’s market share in the top 4 provinces by volume pre and post tariffs (see Figure 2).
Figure 2: Australia and Canada’s volume share pre and post tariffs
|
Province |
Year Ending Mar-25 |
Year Ending Mar-26 |
||
|
Australia |
Canada |
Australia |
Canada |
|
|
Ontario |
6% |
33% |
9% |
39% |
|
Quebec SAQ |
4% |
4% |
4% |
4% |
|
Quebec grocery |
32% |
46% |
32% |
45% |
|
British Columbia |
5% |
53% |
6% |
56% |
|
Alberta |
5% |
32% |
6% |
35% |
Source: EzFocus
Australian Cabernet Sauvignon and mid-price segment driving growth
The Australian varieties driving growth are Cabernet Sauvignon, Shiraz and Chardonnay. In Ontario, the growth driver is Cabernet Sauvignon (up 73 per cent), followed by Shiraz (up 31 per cent). Together, these two varieties make up over half of the Australian volume in Ontario.
Across the 4 provinces, all price points recorded growth, however, the mid-price segment between $8 - $14.99, where Australian wines generally have the largest share, had the highest increase.
Increased sales translate to strong export performance for Australia wines
Australian wine exports to Canada increased by 24 per cent in value to $188 million and 15 per cent in volume to 69 million litres in the 12 months to March 2026. The average value per litre increased by 8 per cent to $2.73 per litre FOB. The number of exporters to Canada also grew by 11 businesses to reach 220 during the year. However, most of the growth is driven by brands who were already in market ahead of US wines being taken off shelves and this increase in sales is being experienced by exporters large, medium, and small.
Aligning with the sales data – the key varietal in growth is Cabernet Sauvignon – up by 90 per cent in the last 12 months. Nevertheless, there was also good growth across many of the key varietals – including Shiraz, Chardonnay and Pinot Grigio.
The increase in exports to Canada in the past 12 months was also spread across the price spectrum, from bulk wine exports to premium bottled shipments (see Figure 3).
Figure 3: Value of exports to Canada by price segment, year ended March 2026
Source: Wine Australia’s Export Dashboard
These elevated levels of sales and exports could be maintained in the near-term as Canadians might continue to boycott American products even after the tariffs have lifted on US wines. According to IWSR, wine drinkers across age groups have been purchasing fewer US alcohol products, with the sentiment strongest among Boomers.
Wine Australia recently hosted close to 100 key trade contacts in Vancouver, as part of our North America Roadshow. The event began with a seminar on Style Shifts: Australia’s Varietal Evolution, looking at how emerging varieties and evolving wine styles are shaping Australian wine’s sustainable future. This was followed by a walkaround tasting focused exclusively on Australia’s white and sparkling wines, showing a broad range of regions, varieties and styles, all paired with small bites illustrating the food-friendly, vibrant styles defining modern Australian wines. The feedback from attendees was incredibly positive, and Wine Australia is already in planning for Roadshow activities in Toronto and Montreal next spring.
[1] Prime Minister of Canada
[2] Gambero Rosso International
[3] CBC News
[4] BC Liquor Distribution Branch (LDB)
[5] British Columbia Liquor Distribution Branch Wholesale Operations
[6] “Red states” refers to a state that primarily votes for the Republican party in the U.S elections as opposed to blue states that tend to vote Democratic
[7] Alberta Gaming, Liquor and Cannabis (AGLC)
[8] CBC News
[9] Société des alcools du Québec