Control and sale of alcoholic beverages

Sales of alcoholic beverages at Canada's beer and liquor stores and agencies increased at their slowest pace in eight years during the fiscal year ending March 31, 2005.

For the first time, sales of wine in dollar terms surpassed sales of spirits in Canada.

In total, liquor and beer outlets sold nearly $16.8 billion worth of alcoholic beverages during 2004/2005, up 3.8% from the year before. This was the slowest rate of growth since 1996/1997.

Growth in sales of wine continued to outpace those of beer and spirits. Wine sales were up 6.5% in 2004/2005 from the previous year, twice the rate of growth of 3.3% in the beer market, and much faster than the 2.3% growth in spirits.

As usual, beer was by far the most popular beverage. In terms of dollar value, beer captured 50.4% of sales. However, wine accounted for 25.2% of sales compared with 24.3% for spirits, the first time wine has jumped into second place.

On a per capita basis, $638.60 was spent on alcoholic beverages in 2004/2005, up $15 from the previous year.

Volume of sales of wine increased 4.0% in 2005, while the volume of sales of spirits and beer declined 0.1% and  0.6% respectively.

Revenue from the sale of alcoholic beverages plus the net income realized by provincial and territorial liquor authorities hit $4.5 billion in 2004/2005, up 3.8% from the previous year.

Provincially, net income increased most in British Columbia (+7.1%) and in Ontario (+6.7%). In Quebec, it declined 4.4%, reflecting a three-month strike at the Société des alcools du Québec.

Evolution of Canadian's taste over the last 10 years

Over the last 10 years, value of sales of alcoholic beverages increased at an annual average rate of 4.9%, from $10.4 billion in 1994/1995 to $16.8 billion in 2004/2005.

During this 10-year period, sales of spirits increased at an annual average rate of 3.3%. In contrast, beer sales grew at an annual average rate of 4.4%, while sales of wine rose 8.0%.

In 1994/1995, the value of sales of spirits accounted for 28.3% of all sales of alcoholic beverages, beer 53.0% and wine 18.8%. In 2004/2005, these sales accounted for 24.3%, 50.4% and 25.2% respectively.

By province, the highest average annual rate of growth in the value of sales of alcoholic beverages over the last 10 years occurred in Quebec (+5.7%), followed by Ontario (+5.3%). The lowest growth was recorded in Newfoundland and Labrador (+1.8%).

By volume, sales of spirits and wine both increased at annual average rates of 4.5% over the last decade, while volume of beer increased 1.0%.

Imported products capturing greater share of the Canadian market

In 2004/2005, the value of imported alcoholic beverages grew by 0.8% to almost $2.0 billion, while the value of products exported by Canadian companies fell 5.1% to $0.8 billion. It was the fourth year in a row in which the value of exports of alcoholic beverages declined.

Imported brands continued to expand their share of sales in Canada, capturing 33.7% of the market in 2004/2005, compared with 22.4% a decade earlier.

Between 1994/1995 and 2004/2005, the volume of sales of imported alcoholic beverages increased at much faster rates than domestic products.

During this 10-year period, the volume of sales of imported wine grew at an annual average rate of 5.4%, while Canadian products increased at an annual average rate of 3.3%.

At the same time, in the spirits market, the volume of sales of imported products grew at an annual average rate of 5.7%, compared to 4.1% for domestic brands.

In the beer market, the volume of sales of imported products grew at an annual average rate of almost 15%, while volume sales of Canadian products barely changed (+0.1%).

Volume sales of imported beer now account for 11.5% of the Canadian market, up nearly four-fold from only 3.2% a decade ago.

Wines: more Canadians drinking wines

Wineries and liquor stores and agencies sold $4.2 billion worth of wines in 2004/2005, up 6.5% from 2003/2004.

On a per capita basis, every Canadian aged 15 and over spent on average $161.10 on wine in 2004/2005.

Red wines accounted for 54% of all sales of wines in Canada in 2004/2005, while white wines had 32% of the market.

More than 80% of all red wines sold in Canada were from other countries.

From 1994/1995 to 2004/2005, the value of sales of imported wines grew at an annual average rate of 9.1%, compared with 5.8% for Canadian products.

The value of sales of wine increased in all provinces in 2004/2005 with noticeable increases in Saskatchewan (+16.5%), British Columbia (+12.2%) and Ontario (+10.6%).

Spirits: Canadian products losing ground

Liquor stores and agencies sold $4.1 billion worth of spirits in 2004/2005, up 2.3% from the previous year. Canadian products represented 64% of these sales.

A decade ago, the value of sales of Canadian products represented 71% of all spirits sales in Canada.

On a per capita basis, each Canadian aged 15 and over spent on average $155.40 for spirits in 2004/2005.

Whisky type products, such as whisky, scotch and bourbon, accounted for almost 30% of all spirits sales in Canada in 2004/2005, and more than 70% of these sales were Canadian products.

Three-quarters of all liqueurs sold in Canada are imported products. This ratio climbs to 85% for brandy.

In the past 10 years, the share of Canadian products for alcohol, brandy and gin has declined compared with imported products.

In litres of absolute alcohol, imports of spirits fell 1.8% in 2004/2005, the first decline since 1996/1997. The vast majority (95%) of Canadian exported spirits go to United States.

Provincially, value of sales of spirits in 2004/2005 declined in three provinces: Newfoundland and Labrador, Quebec and Saskatchewan.

Beer: passion for imported brands continues

Breweries and liquor stores and agencies sold $8.4 billion worth of beer in 2004/2005, up 3.3% from the previous year.

On a per capita basis, this amounted to $322.10 for every Canadian aged 15 and over.

Canadians spent almost $1.2 billion on imported beer in 2004/2005, up 6.4% compared to 2003/2004. Sales of domestic brands rose only 2.8%.

From 1994/1995 to 2004/2005, sales of imported beer increased at an annual average rate of 18.6%, nearly six times the rate of growth of only 3.2% for sales of domestic brands.

The value of beer sales increased 6.7% in British Columbia in 2004/2005, followed by Ontario (+6.5%). It declined in two provinces: Newfoundland and Labrador (-8.5%) and Quebec (-0.7%).

Of all imported beer in Canada, 23.4% came from the United States, 20.5% from Mexico and 19.3% from the Netherlands.

Available on CANSIM: tables 183-0006 and 183-0015 to 183-0020.

Definitions, data sources and methods: survey number 1726.

Data tables on the control and sale of alcoholic beverages in Canada are also available online in the new National economic account module on our website.

The 2005 issue of Control and Sale of Alcoholic Beverages (63-202-XIE, free) will soon be available.

For more information on the products or services of the Public Institutions Division, contact Jo-Anne Thibault (613-951-0767; jo-anne.thibault@statcan.gc.ca).

For more information, or to enquire about the concepts, methods or data quality of this release, contact Claude Vaillancourt (613-951-1820; claude.vaillancourt@statcan.gc.ca), Public Institutions Division.