South Australia's government says its wine exports to Canada rose by more than A$24 million in the year to August 2026, reaching A$128 million. Volume climbed 38.6 percent to 48.5 million litres, and the state now supplies 68 percent of all Australian wine sold into Canada. Canada has become South Australia's third-largest wine market, ahead of the United States and behind only China and the United Kingdom. The jump follows the decision by Ontario, Quebec, British Columbia and other provinces, starting in March 2025, to pull US alcohol from their shelves. A four-week LCBO promotion of 16 South Australian wines across nine flagship stores lifted sales 49 percent, and the state will now place a trade official in Toronto.
This is the other side of the story I wrote about a few days ago, when US producers had lost hundreds of millions in Canadian sales. Shelf space does not stay empty. When a provincial board removes a category, someone fills it, and the winners are the producers who show up first with stock, pricing and a retail plan.
What stands out to me is how deliberate it was. South Australia did not simply wait for buyers to call. It worked directly with the LCBO and BC's liquor board, ran tastings and promotions, and is now putting a person on the ground in Toronto. In a market controlled by provincial boards, that kind of relationship work decides who gets listed.
At Grus Drinks we import and distribute in both New York and Toronto, so we watch this shift closely. The lesson for importers is that Canadian listings are being reallocated right now, and they will be hard to win back once the US dispute ends. Producers from Australia, Europe and South America who commit to the Canadian channel today are building positions that may outlast the tariffs.