LCBO profits rise as Ontario residents drinking more pink wine

Unsurprisingly, Ontarians are drinking more than ever, but you may be surprised by the colour of the hottest beverage.

Pink wine took off this year. Growth in sales of rosé at the LCBO outstripped those of white, reds, beers and most spirits during the 2010-2011 fiscal year.

Rosé is usually made by allowing the skins of black grapes to ferment with the juice for a shorter period of time. Pulling the skins out early gives the wine its distinctive colour.

Rosés have long suffered from the same perception faced by coolers and cosmos: that they're only for women.

While some Rosés do feature a sweeter flavour, more traditional dry Rosés are now gaining in popularity and shifting thinking about the pink wine.

Sales of Rosé at the LCBO jumped 14.7 per cent in the 2010-2011 fiscal year, while sales of white grew 7.4 per cent, red 6.2 per cent, beer 5 per cent and spirits 4.4 per cent.

Total sales climbed 5.6 per cent to $4.55 billion, with profit jumping 8.8 per cent to $1.56 billion. Much to the chagrin of many citizens, Ontario's government reaped a record windfall of $1.55 billion (that's excluding tax revenue!) from LCBO sales, an increase of 9.9 per cent over the previous year.

While sales are up, the LCBO is facing a new challenge to its wine selling monopoly. Many Ontario wineries have complained it's difficult to get their products into the LCBO.

Ontario's Tory leader Tim Hudak has now come out in support of a netwok of VQA stores that would give local wine makers an alternative venue to sell their products.

The Vinter's Quality Alliance (VQA) grants its label to wines which contain 100 per cent Ontario-grown grapes.

Whether Ontarians get an alternative wine destination or not, expect the tendency to think pink to pick up during the forecasted hot summer.

(Photo credit: Seth Wenig/AP Photo via CP)