(Wines&Vines) - The economic impact of the British Columbia wine industry is significant—more than $2 billion, according to a study released earlier this year—but local producers are facing equally significant challenges holding their own against a tide of foreign competitors. 

While more than 90 labels showed up at this week’s fall release event in Vancouver hosted by the British Columbia Wine Institute, the latest numbers from the B.C. Liquor Distribution Branch (BCLDB) indicate that wines entering the market face stiff competition. 

Wines bearing the B.C. VQA designation—granted to wines made entirely from B.C.-grown grapes that meet established quality standards—saw their share of dollars spent on wine in B.C. peak at 20.4% in 2010 (BCLDB figures do not include cellar door sales). By the end of 2012, market share had fallen to 18.9%—and despite rising in June, preliminary numbers for the 12 months ended Aug. 31 suggest their share of the market had dipped to 18.6%. 

A piece of the pie

The shift comes despite a rise in sales of B.C. VQA wines, which totaled $178 million in 2012, up from $146 million in 2008. “While we continue to grow our piece of the pie, the pie is getting bigger faster than our piece,” Miles Prodan, executive director of the B.C. Wine Institute, told Wines & Vines. “We’re selling more juice, but we’re not making as much money (per bottle).”