Wine venture's failure 'an unfortunate circumstance'

Monday, March 10, 2008

by BETTER FARMING STAFF

In a letter to the St. Catharines Standard, Wiley wrote that the group was formed in 2004 "with the best of intentions."

"They recognized that the precariousness of the grape industry for many growers might be changed. This attempted change came in the form of starting a winery. The winery created was a successful brand. The winery has failed financially."

In a telephone interview, Wiley hinted that the winery's failure had to do with systemic problems within the province's grape industry.

"The more you know about this industry, the more depressing it is," he said.

The winery's products got its name from the involvement of the 19 growers and one wine maker.

Initially the venture's future looked bright, having established nine product listings with the LCBO (Liquor Control Board of Ontario).

In 2007, it garnered the LCBO Elsie award for VQA excellence and a regional Premier's award for agri-food innovation. The regional award recognized the venture as "a first for Ontario" which distributed product through the province'­s 780 LCBO stores and for creating "several jobs" in the Niagara region.

But by February, the company whose book value was nearly $33 million owed nearly $40 million to secured and unsecured creditors, court documents show.

Jacquie d'Eon, a spokesperson for Deloitte & Touche, said the company is being offered for sale. April 14 is the closing date for offers.

She declined comment on whether there had been any expressions of interest in buying the company.

If no sellers come forward, the business will be declared bankrupt and "then sold in available chunks," said d'Eon.

Wiley, who sold a significant portion of his grapes to the company, said he wasn't sure what his next step would be.

He noted that at one time he sold grapes to Vincor, Canada's largest producer and marketer of wine and related products, but Vincor had let him go after he became involved with the Niagara Vintners. BF