How the Distillery District Lost its Magic
By: Sophie Shen
“Like pretty much everything in Toronto that used to be fun and cool, it is now expensive and completely crowded,” one user commented on a popular Tiktok reviewing the Toronto Distillery District’s annual Winter Village. This year marks the Distillery District’s largest christmas market, opening for the longest period and attracting the largest crowds. After an hour of queuing, visitors can step into the historic district’s vibrant lights, holiday sculptures, and North Pole Post, all leading to the centre of the madness–a 55 foot-tall Dior Parfums Christmas tree. The tree seemed to attract tourists and locals alike, spurred on by either the holiday frenzy or the thrill of a social media fantasy.
Yet, the Distillery District’s holiday market hardly looked like the tourist filled wonderland it was last year. A local, shocked at the lines wrapping around buildings, remarked, “I have never waited in long lines to go into [the Winter Village].” Inside the christmas market, seasonal cabins held 60 local vendors—including the viral David Adjey’s Yorkie Burrito and Balzac’s s’mores and tiramisu hot chocolate. However, charging yorkshire burritos upwards of $20 and a cup of hot chocolate for $9.95 has triggered complaints on the overly commercialized holiday market. A premier Toronto historic landmark known for Victorian industrial architecture and local arts and culture seemed to be selling an image of a christmas market, without the actual enjoyable experience.
The landmark building in the Toronto Distillery District was a five-storey limestone distillery, inaugurated in 1861 by James Worts and William Gooderham. The company was later merged with Hiram Walker & Sons Ltd. in 1926 and continued its operations until the late 20th century. In 1988, the district was designated as a National Historic Site of Canada. In 2001, the building complex was purchased by Matthew and his co-investors at Cityscape Holdings Inc., who worked to transform the space into a hip, eccentric and dynamic downtown space for arts, entertainment, and culture. Twenty-four buildings were converted into galleries and artists’ spaces. The place eventually reopened to the public in 2003 and the Winter Village was created in 2010.
Landmark distillery building, heart of James Worts and William Gooderham’s distillery company in 1918.
How did the Distillery District rooted in its history and culture transform into a commercial success? The company’s transformation can be analyzed through its location focused business-model. The Developers of Toronto’ s Distillery District has focused on bringing unique boutiques into the corporate downtown Toronto. The Distillery District rents out retail spaces such as kiosks, cabins and containers for small business tenants to grow. The container village— a collection of small stall-like spaces—was an initiative that started in 2021 was designed for pop-up retailers.
Retail container at Distillery District
John Berman, one of the partners in Cityscape Holdings, explains how the Distillery District functions as an incubator for small business as “many of the businesses here start here as kiosks or even cabins and expand into stores.” Business incubators often provide resources such as shared office space, management training and even funding for small businesses to establish themselves. The distillery district provides its business with the high-foot traffic, partnerships, and marketing. A well-loved Toronto chocolate shop, SOMA Chocolatemaker, started in the small corner of the distillery building in 2003. They have now opened 3 retail stores across Toronto and a chocolate factory. Placing small businesses in the heart of Toronto’s historic neighbourhood seems the most fitting.
Summers in the district were vibrant and thriving, but winters were slow. This led to the creation of the Christmas Market, inspired by traditional European Christmas markets. What started out as a few christmas shops selling trinkets and food grew to a large carefully decorated and sightseeing spot for more than 800,000 people to visit. So what is different this year? The Winter Village incorporated more attractions such as the Indoor Santa’s Village, a huge lit-up family wreath, carollers, snow machines, sleighs and the North Pole posts to send letters to Santa. Also, an increase in general admission passes from $8 to $15. Time period of free admissions shrinked. In 2023, tickets were free on weekdays until Friday at 6pm. Tickets were required everyday after 4pm in 2024 and had to be purchased online. The Winter Village also created a tiered ticketing model, offering visitors a Flex or Express Gate Entry ticket to skip the long lines. Ultimately, what used to be a spontaneous day-trip for pedestrians to stroll by turned into a viral magnet attracting people from all over Ontario to drive in and pay for the experience.
Family wreath at Toronto Distillery District’s Winter Village.
The Winter Village attracts many seasonal vendors with its aggressive promotional strategy. The website boasts of maximum exposure through social media, news, radio ads, newspaper ads, and using its key partnerships. The Winter Village charges its rent as significant portions of the vendor sales: “15% from general retail and 25% from food, plus a 3% processing fee.” The minimum rents are set at $12,000 for general retailers and $15,000 for food vendors as well. Vendors are expected to carry their own liability insurance of a minimum of $5 million. The high pricing is thus passed onto the customers, who have noticed an increase in price in the last Christmas season. These high barriers to entry ultimately tend to favour those who are confident the six week holiday period will achieve earning potential. The profits are reinvested into “the operational costs of the market with any surplus donated to charity”, explained by Rosenblatt. As the operational costs of the market grows to maximize commercial appeal, it raises questions regarding the balance between preserving the heritage of Toronto, protecting small business, and ensuring fair pricing for everyone to access. Despite its undeniable success in 2024, the Winter Village’s approach may end up alienating less affluent locals and eroding the community-centric vision that once contributed to the Distillery District’s success.
Summers in the district were vibrant and thriving, but winters were slow. This led to the creation of the Christmas Market, inspired by traditional European Christmas markets. What started out as a few christmas shops selling trinkets and food grew to a large carefully decorated and sightseeing spot for more than 800,000 people to visit. So what is different this year? The Winter Village incorporated more attractions such as the Indoor Santa’s Village, a huge lit-up family wreath, carollers, snow machines, sleighs and the North Pole posts to send letters to Santa. Also, an increase in general admission passes from $8 to $15. Time period of free admissions shrinked. In 2023, tickets were free on weekdays until Friday at 6pm. Tickets were required everyday after 4pm in 2024 and had to be purchased online. The Winter Village also created a tiered ticketing model, offering visitors a Flex or Express Gate Entry ticket to skip the long lines. Ultimately, what used to be a spontaneous day-trip for pedestrians to stroll by turned into a viral magnet attracting people from all over Ontario to drive in and pay for the experience.