Terralux Winery Faces Foreclosure After Years of Setbacks in Okanagan Wine Industry

Several wineries in British Columbia’s Okanagan region are facing foreclosure after a series of difficult years for the local wine industry. Terralux Winery, located along the West Kelowna Wine Trail, has remained unfinished for more than two years and is now officially in foreclosure. It is one of three wineries currently in foreclosure across the Okanagan, with others located in Cawston and Okanagan Falls.

Industry leaders point to a combination of challenges that have hit the region since 2020. Jeff Guignard, president and CEO of Wine Growers BC, said that while the COVID-19 pandemic affected most businesses, the wine sector also suffered from severe wildfires and a rare cold snap that destroyed about 90% of the grapes in the Okanagan. “We’re still replanting about a third of it,” Guignard said.

The financial strain is evident in the real estate market. In 2024 alone, at least 25% of Okanagan wineries were listed for sale. Last year, about 20 wineries were publicly on the market, reflecting growing financial pressure on vineyard owners. Guignard noted that closures are not unusual but acknowledged that recent seasons have been especially tough. “It’s always heartbreaking when one of these wineries doesn’t make it,” he 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.’”

Some winery owners believe government policies have added to their difficulties. Ron Kubek, owner of Lightning Rock Winery, criticized provincial measures intended to help producers import fruit from the United States during shortages. He said that while the government allowed imports, taxes imposed by the British Columbia Liquor Distribution Branch (BCLDB) offset any potential benefit. “They’re not doing anything,” Kubek said.

In response to concerns from winery owners, Minister of Agriculture Lana Popham stated that clear guidelines were communicated to the industry regarding maximum production and program rules during recent emergencies. She emphasized that government support has been provided through various programs and that the Liquor Distribution Branch will continue working closely with wineries and Wine Growers BC.

Despite these setbacks, the Okanagan wine industry remains a major driver of tourism in British Columbia. Guignard described it as an economic engine for the province and called for increased investment in tourism to attract visitors from Alberta, other parts of Canada, and the United States.

While the number of wineries for sale or in foreclosure has raised concerns among some observers, industry leaders say it is not yet cause for panic. Instead, they see this period as an opportunity to watch how the sector adapts and evolves in response to ongoing challenges. The coming months will be critical as vineyard owners assess their options and look for ways to recover from recent losses.