After nearly 20 years in business, a husband and wife winery in B.C.’s Cowichan Valley is closing up shop, citing the fallout from paying back pandemic-era government loans.
Rocky Creek Winery president and owner Linda Holford said the business took on $60,000 in Canada Emergency Business Account (CEBA) debt when the COVID-19 pandemic hit.
Holford said the small winery took the loans, never anticipating interest rates would surge soon afterward.
“I actually thought the government was giving me a lifeline, but now it’s choking me,” she said.
The winery has since paid back all of the debt, but keeping up with increased interest payments over two years did damage to the business it just can’t recover from.
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“From December to January, my interest payments for all of this debt … it actually took a third of my operating budget,” she said.
Combined with inflation and a slowdown in tourism, she said the winery simply isn’t bringing in enough money to survive.
“It is the worst year I have ever had in 19 years. We are hoping that August and September usually is enough to get us through March, and unfortunately, it didn’t,” she said.
“We just can’t limp along anymore.”
Chris Turyk, director of marketing and sales with UnsworthVineyards, said despite international recognition and a quality product, B.C.’s entire wine sector is hurting.
The pandemic hangover, Alberta trade restrictions, January’s crop-killing freeze, inflation and changing public habits around alcohol consumption have fermented an ugly situation for winery operators.
He said now more than ever, B.C. wineries need people to choose local product.
“The writing is on the wall that there will be businesses that close in the B.C. wine industry,” he said.
“We need all the help we can get. We make a delicious product that is competitive with many regions around the world.”
For Rocky Creek, any help will come too late.
The business is in the process of selling off its wine, equipment and farm, and will formally close on Oct. 13.
“You’ve gotta know when to hold them, and when to fold them,” Holford said.
“I do want to thank everybody who has become part of Rocky Creek.”
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