Terralux Winery along the West Kelowna Wine Trail has sat unfinished for more than two years and is now officially in foreclosure.
It’s one of three wineries currently in foreclosure across the Okanagan, including one in Cawston and a vineyard in Okanagan Falls.
The filings follow several difficult years for British Columbia’s wine industry.
“It’s been tough ever since COVID, like most businesses,” said Jeff Guignard, president and CEO of Wine Growers BC. “But on top of COVID, we had forest fires and then a generational cold snap that destroyed about 90 per cent of the grapes in the Okanagan. We’re still replanting about a third of it.”
In 2024 alone, at least a quarter of Okanagan wineries were listed for sale. Last year, roughly 20 were publicly on the market, a sign of mounting financial pressure in the region.
“It’s always heartbreaking when one of these wineries doesn’t make it,” Guignard said. “But this happens every year — a few more open, a few more close. Certainly after a few tough seasons, you have people looking at the value of their land and thinking, ‘Maybe I want to do something different.’”
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Ron Kubek, owner of Lightning Rock Winery, believes the strain on the industry also reflects provincial policy decisions.
“The B.C. government says they’re going to help you, that you can bring in fruit from the U.S. and then the BCLDB says they’re going to tax you,” Kubek said. “They’re not doing anything.”
In response Minister of Agriculture Lana Popham said, “From the outset, there were very clear guidelines communicated to the wine industry about maximum production and program rules, and it was intended to help the industry keep the lights on during a very serious agricultural emergency. Our government has helped the wine sector through challenging times with several different supports, and we understand the pressures they are facing. The Liquor Distribution Branch will continue to work closely with wineries and Wine Growers BC.”
While it may be considered an oversaturated market, the Okanagan wine industry remains one of B.C.’s strongest tourism draws.
“B.C.’s wine industry is an economic engine and a massive tourism driver for this province,” he said. “We should be doubling down on investing in tourism, driving folks from Alberta, the rest of Canada and the U.S. to build this region. We’ve been talking to government about that.”
Guignard says while the number of wineries for sale and in foreclosure may raise eyebrows, it’s not time to panic, but rather a moment to watch how the industry adapts and evolves.
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