We are still a relatively young industry in the world of wine, but we have made enormous strides over a few decades. In terms of our size, our industry is still very small and therefore does not have the same economies of scale to compete worldwide. That said, the quality of our wine is highly recognized, as evidenced through winning awards at prestigious international shows such as Vinexpo, the International Wine and Spirit Competition, and Decanter.
Over time, we need to grow our industry and its critical mass in order to become more competitive in the marketplace. This means that our primary focus needs to be on growing domestic wine sales within our individual provinces, and then within Canada. The more that we own our home market, like every other wine-growing region, the more we will have the capacity and economics to grow our exports and brand recognition worldwide.
This explains why we have had two requests for the federal government, as articulated through our national organization, the Canadian Vintners Association.
First, we need to make Canadians more aware of domestic wine and its quality and value. This is not a short-term ambition, but will take years of exposure and of attracting more and more consumers to give it a try. Then our wine will speak for itself.
To achieve that goal, our request has been for a national domestic marketing program through Agriculture and Agri-Food. We have done a detailed business case to demonstrate the return on investment of a $35-million program over five years, which we had hoped would be in the budget. Regardless, we will be making a formal application to the Growing Forward 2 agri-marketing program for $12 million over three years, with fifty-fifty cost sharing.
Secondly, we want to have consistent treatment of every grape grown in Canada, regardless of whether it is used in appellation or blended wine. Currently, Canadian grapes are exempt from the excise tax only if they are used in a bottle of 100% Canadian wine, yet in Ontario over 50% of Ontario grapes are used in blended wines. We want to increase the demand for Canadian grapes in all provinces, so a consistent application of excise tax would provide the foundation for future growth of our industry.
Finally, in spite of the great allure of the wine industry, it is characterized by long-term capital investment and long-term modest returns. We compete against wines made in every country of the world. Let us grow our industry, enchant consumers, and create long-term sustainable jobs in our own country.
Thank you very much.