Members Area - Processes

Audit & Inspection - Verifying Compliance

Winery Audit

VQA Ontario conducts an audit of winery premises every 6 months. The purpose of the audit is to examine winery records and inventory and determine whether VQA regulations are met and whether all volumes of VQA wines are substantiated with respect to origin and other requirements. Wineries will be contacted by winery audit staff to arrange an audit.

Wineries must provide official records from the Grape Growers of Ontario including a “weigh slip” with the results of an independent test for Brix. All grapes used in VQA wines or those intended for VQA wines must be accounted for on an official weigh slip issued at the time of harvest.

Once the grapes are crushed, wineries must keep log, day books or equivalent records that show the process of all VQA wines through processing to bottling. Records should include volumes, varietal compostion, vintage composition, origin and treatments tracked by date and traceable back to the grapes used. Winery audit must have enough information to verify the exact proportions of any tank of wine by origin, grape variety and brix, vintage, and wine category and have access to records related to treatments such as chaptalization. For certain wine categories, such as Icewine, more information may be required.

A reconciliation of all inventory by origin, vintage, variety, and wine category is conducted as part of the audit. A complete inventory of VQA wines is established at the first audit. At future audits, all wine received since the last audit and volume from new grapes crushed will be added to the inventory and all wine sold or otherwise disposed of will be subtracted. Changes in wine inventory from audit to audit must be consistent with intake of new products and sales.

Inventory in bulk and cased goods will be counted and volume in tanks verified. Wineries must support all wine purchases that are intended for VQA certification. Purchased wine must be accompanied by a “Letter of Audited Transfer” that is stamped by the Winery Audit. This letter must be obtained from the selling winery before the wine is physically transferred to the purchaser.

Wines that have been bottled and labeled are checked for compliance with the VQA Act and regulations. Winery audit also determines whether VQA wine sales have been correctly reported.

Missing or incomplete information will result in further investigation and may result in wine approvals being withheld, suspended or revoked. Wine with a suspended or revoked approval may not be sold using VQA regulated terms and must either be withheld from sale or relabeled.

Evidence that a wine does not meet VQA requirements, or that false information has been provided will result in the suspension of wine approvals pending further investigation. Investigations may be conducted in addition to the normal audit process at any time and without prior notice. VQA investigators may attend the winery’s premises and search for any information necessary to investigate possible violations of the VQA Act or regulations. Product samples may also be removed for testing.

After an audit is completed, the winery will be notified if any further information is required or if any discrepancies have been discovered and what action must be taken. No follow up is required if no issues are raised during the audit.

Retail Inspections

VQA Ontario conducts inspections of winery retail stores periodically and at least annually for all wineries that operate retail stores. The frequency of retail inspections is based on the past compliance record of the winery. Retail inspections are conducted without notice.

Information about wines offered for sale, including use of VQA terms on labels is collected at each retail inspection. This information is then checked against VQA records to determine whether the wine is approved and complies with labeling requirements.

The winery will be notified if any problems are discovered as a result of a retail inspection.

Enforcement actions

VQA Ontario may take enforcement actions if violations of the VQA Act and Regulations are suspected. These might include:

Refusal, suspension or revocation of a wine approval
Compliance order to remove wine from all sales channels, including recalls and removal of in store inventory in retail channels
Compliance order for corrections to labeling or packaging
Compliance order for corrective action such as issuing a public statement to correct misleading information, requiring remedial education for winery staff
Declassification of wines (such as non-qualifying Icewine declassified to Late Harvest)
Suspension or revocation of VQA membership and ability to certify wines
Pursuing charges for violations of the VQA Act (filed under the Provincial Offenses Act)

Except in severe circumstances and when consumer deception is not involved, a compliance order is normally preceded by a warning and a short time allotted to comply.

If a winery discovers non-compliance internally and plans to take corrective action voluntarily, VQA can assist in ensuring it is done properly.

Penalties

Fines may be levied as a result of convictions under the VQA Act to a maximum of $100,000 per conviction. The cost and inconvenience to a winery of loss of VQA status, product withdrawal, re-labelling and reputational implications can be substantial depending on individual circumstances.