Winemakers say a focus on marketing is the way to fix the industry

The Winemakers Federation of Australia says it is time to spend more money on marketing to win back overseas wine drinkers.

The local industry has been in a slump for years, and, ahead of the May Budget, is calling for changes to how government funds marketing activities.

Audio: Paul Evans, CEO of the Winemakers Federation of Australia (ABC Rural)

Paul Evans, CEO of the Winemakers Federation, said growing demand for wine was the key.

"We're really focusing on demand for wine in our traditional markets, particularly North America, so the US and Canada, but also capitalising on the emerging Asian markets like China," he said.

Mr Evans said that the reforms he was seeking could be funded by changes to the Wine Equalisation Tax, which reimburses smaller producers with tax credits, particularly removing access to the rebate for New Zealand producers.

"We believe there are significant savings in reforming the WET rebate, and some of those savings should be reinvested into marketing," he said.

Mr Evans conceded that as part of the proposal, the Winemakers Federation was calling for the WET rebate to be phased out for bulk or unbranded wine, and that growers who produced this wine might be forced to leave the industry.

Source : ABC Rural   Nikolai Beilharz   February 18th 2015