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Luke Lay

Grape expectations: winemakers target trade war gap

Canada's trade war with the US could offer an opportunity for the Aussie wine industry. (Bianca De Marchi/AAP PHOTOS)

A new trade official will be appointed to boost Australian wine exports as businesses look to capitalise on the North American trade war.

The envoy will be permanently based in Toronto and tasked with promoting Australian wine across Canada's provinces.

It's part of a South Australian government rescue package for the state's troubled $2.4 billion wine industry, which is grappling with oversupply, lower grape prices, changing demand and rising costs.

The bulk of the $109 million package was earmarked to help growers diversify their crops.

Grapes on the vine
Winegrowers are facing oversupply, lower grape prices, changing demand and rising costs. (Peter Stoop/AAP PHOTOS)

However, $9 million is set to go toward expanding an export campaign to exploit the gap in Canada’s market.

Canada's trade war with the US has resulted in American wine being pulled off shelves in provinces like Ontario, Quebec and British Columbia, leaving a hole SA winemakers are looking to fill.

Canada's liquor market is dominated and controlled by its government.

The country's liquor sales declined by 1.6 per cent from the 2023/24 financial year to March 2025 after a three per cent drop in overall consumption.

Australian wine exports to Canada have climbed $24 million this year, totalling $128 million.

Speaking at the National Wine Centre in Adelaide SA State Development Minister Chris Picton said the plan was to diversify the export market, with recruitment for the new official to start soon.

Wine on shelves
South Australia is investing in its struggling wine industry, which it's looking to diversify. (Richard Wainwright/AAP PHOTOS)

"That trade war between Canada and the US presents a prime opportunity for South Australia to jump in and to make the most of that effort, and that's what we're doing," he said.

"If you're doing that, then it's more resilient to shocks that happen in what's obviously a really difficult trade environment across the world.

"Once you get a contract, a leg in with the liquor control board of a province like Ontario, then suddenly your wine is before millions and millions of people in these bigger markets into Canada.”

Asked about the trade war, Canadian grape grower and wine maker Brad Rey said his countrymen were quick to forgive and very polite people.

"But we have memories like elephants," he said.

"So I don't think that we're going to see the Canadian market run back to American wine or spirits or beer in any time in the near future."

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