We have been looking at amending the Importation of Intoxicating Liquors Act for many, many years. We first attempted to work with the liquor boards to establish and put in place a personal exemption. However, we had no success. Their alternative was to make an attempt to sell more 100% Canadian wines in their retail stores across Canada. That has happened to a certain degree, but not to a level that would enhance our competitiveness and grow our market share in Canada.
Taking a look at Mr. Albas's bill, the best benchmark that we have is the United States. In 2005, the Supreme Court made a ruling to open up the borders to interstate trade in wine. Since 2005, 37 states have amended their state laws to allow for direct-to-consumer delivery, including 70% of controlled states in the U.S., the equivalent of the liquor board system we have here.
The total direct-sales market in the U.S. represents about 2% of total wine production, of which 1% would be wine purchased at the tasting room—in other words, the type of sales that are taking place right now. When he's selling a case of wine to a tourist in his winery, the vinter has no idea whether that consumer is an Ontario or a British Columbia resident. It's a sale.
The other 1% of direct sales in the U.S. are shipped by the vintner from a tasting room to another state, through a winery wine club, via the Internet. Believe it or not, you can sell wine on the Internet in the United States. Or it's done over the telephone or that form of direct shipment. That's what we're seeking here in Canada. We anticipate that it would probably be similar or about 1% of total Canadian wine sales.
Now, speaking about 100% Canadian wines, not the international Canadian blends, 95% of the international Canadian blends sell for under $10 a bottle. Shipping a bottle of wine from British Columbia to Ontario, or vice versa, costs roughly $4 per bottle, so you're looking at wines that are probably over the $15 price point.
If you follow that mechanism of 1% of total VQA sales in Canada, you're looking at probably somewhere between 25,000 to 30,000 cases of wine per year. That's a small amount in comparison to total wine sales in Canada, which approach 500 million litres, but it would be extremely beneficial to the small and medium sized wineries, most of which can't access the liquor board system. It would encourage their ability to grow, it would keep more margin in their pockets, and it would give Canadian consumers an opportunity to taste the fantastic wines that we have, thereby encouraging the liquor boards to sell more 100% Canadian wines. As a result, when they're stocking more wines on their shelves, they're going to make more sales.
The wines we're talking about aren't currently sold in the liquor board system. If they were, you wouldn't want to purchase them and pay the $4 a bottle transportation charge. These wines are not available because liquor boards are not listing them.