OTTAWA — Canada's reputation as a beer guzzling nation is under threat from wine tipplers.

According to Statistics Canada, while beer remains the alcoholic beverage of choice, both in volume and dollar value, wine sales are taking a bite out of its market share.

In 1993, beer peaked at 53 per cent of dollar sales compared to wine which accounted for 18 per cent.

But last year, figures show the market share for beer had dropped to 46 per cent, while wine jumped to 29 per cent.

It's a trend that's been ongoing for a few years, Statistics Canada analyst Jo Ann MacMillan said.

In fact, in 1976, the average person consumed about 115.2 litres of beer compared with just 83.5 litres last year.

"We can't say definitively, but if you look at the age of baby boomers in 1976 and you look at the age of a baby boomer in 2009, that might help explain the story," she said.

"In 1976, baby boomers were quite young. They didn't have a lot of money and their preference would have been to drink beer. Today, when the boomers are . . . 40 years older, we have beer consumption going down and wine going up."

Canadian beer is also under threat from imports, according to the latest figures which show the volume of imported beer sold increased 7.8 per cent last year, while domestic sales remained unchanged.

Imported beer has more than doubled its market share in the last decade in terms of volume, shooting to 13 per cent last year from just six per cent in 1999, the study found.

But Brewers Association of Canada president Ian Faris is unfazed by the apparent downward trend in beer sales.

For one thing, Faris said the figures are already a year old. He expects the economic downturn has prompted many to switch to beer, particular the locally brewed discount variety.

He also notes that domestic companies like Labatt and Molson-Coors are responsible for a lot of the imported beer sales as they're the ones bringing in foreign brands like Stella Artois and Heineken.

And while wine sales may be cutting into beer's market share, he assured beer sales are "very stable."

"We've been very innovative as of late as a global industry, bringing out new products like the lime beers," he said. "Now we're getting into more calorie-conscious beers . . . so we think we're well placed to compete in the future."

Dan Paszkowski, president of the Canadian Vintners Association, said while it's great to see wine edging into beer's share of the Canadian booze market, it's troubling that imported wines account for about 70 per cent of sales.

Because federal laws and provincial tax provisions prevent wineries from shipping their products direct to consumers, they must rely on provincial liquor boards to offer their brands.

"We're working with liquor boards to get improved shelf space and improved VQA wine sales in jurisdictions across Canada," he said, noting it has been easier in wine regions such as B.C. and Ontario which have become much better at featuring local wines.

Canadian wine makers also don't benefit from the millions of dollars in government funding and subsidies that its European counterparts receive, he said.

If they did, consumers would be more knowledgeable about local brands and have better access to them.

"It has nothing to do with the quality of the (Canadian) product," he said. "The quality of the product is excellent."

According to the study, beer and liquor stores sold $19.4 billion worth of alcoholic beverages in 2008-09, up three per cent from the previous year.

Statistics Canada reported a one per cent increase in alcoholic beverage prices during the fiscal year, while the volume of alcoholic beverage sales increased 1.6 per cent to 226.4 million litres.

Provincial and territorial liquor authorities earned more than $5.4 billion in 2009 from liquor sales, up 3.6 per cent from the previous year.

Saskatchewan, Nunavut and Nova Scotia reported the largest increases.