Brothers Paul Speck, left, Daniel Speck, centre, and Matthew Speck all learned the wine business from the ground up.Foody First
Toronto-born Paul Speck was a teenager in 1984 when he started working weekends and summers at his family’s recently purchased vineyards in Niagara. He and family members, including his brothers Matthew and Daniel, learned the business from the ground up, from shovel planting individual vines to creating a Niagara winery that helped establish the Vintners’ Quality Alliance (VQA) to enforce quality standards for Canadian wine.
As president of Henry of Pelham Family Estate Winery and a founding director of VQA, Speck has seen a lot of evolution throughout his 42 years in the grape and wine sector, but nothing could have predicted the phenomenal boom Ontario wineries have enjoyed since Ontario’s liquor market expanded to Costco, grocery and convenience retailers, and the continuing trade war with theUnited States.
Since liquor stores removed American brands from their shelves in March, sales of Canadian wines have skyrocketed. But how was the market before the trade war began?
We were growing, the industry was growing, VQA wines were growing. When the Ford administration opened the market in Ontario [in October, 2024], we went from having 800 distribution points between the LCBO and grocery stores that had licenses to more than 8,500 overnight. That started the first wave of demand, supplying wine to the new systems.
What did you think when Costco agreed to sell Henry of Pelham wine in Ontario last September.
It was a feeling of excitement and terror at the same time. We worried our wines might just sit when placed next to 25 or 30 of the top wine brands. Costco just drops a pallet and puts up a sign above, you know, Henry of Pelham $14.99… You’re right beside these well-known labels — the Joshes, Bread & Butters and Masis. The outcome could have been disastrous. But we were pleasantly surprised to see how well VQA wines stacked up.
Are there other benefits to being stocked at Costco?
The thing we’ve learned is that Costco customers really trust Costco in terms of what they put in that store; that selection is so focused on offering good deals on good products. Our listings at Costco helped our reputation across other channels. While you could say that about other stores, too, Costco is a different beast. People assume you must be good if Costco carries your products and, when they go to another retailer, they’re more likely to try other stuff you make.
Beyond Ontario and the LCBO, which has reported 67 per cent year over year growth for VQA products since California wines were removed from shelves, how are VQA wines selling across the country?
It’s been extraordinary, not just in Ontario, but throughout Canada. We sell wine in every province and territory and sales have really increased because Canadians are saying, ‘let’s give this a whirl.’ It’s like one gigantic VQA wine tasting across Canada. People started walking into the VQA section and are experimenting with all the excellent wine that we make here.
What feedback are you hearing from recent converts to Canadian wine?
Instead of hearing the usual complaints about how we are overpriced — that VQA wines are too expensive compared to international imports — we hear from people who used to buy Sonoma-Cutrer Chardonnay by the case and think our chardonnay offers incredible value because it’s less than the $31.95 per bottle they were spending. People would drop $25 on big California brands, like Josh and Bread & Butter, without even thinking. Now, they are looking at Niagara for alternatives.
Have wine-buying habits changed in other ways?
If you look at the marketplace — it’s not just us, it’s the entire category — wines $15 and under are not selling as well. A brand we created, Sibling Rivalry, that sold for $13.95, was discontinued. The big draw for consumers is wines (priced) between $15 and $25 a bottle. People are drinking less, but when they do, they want to invest in a better bottle. Most of what we produce falls into that price bracket, and we can’t keep up with demand. It’s a different type of problem.
This interview has been edited and condensed.
