South Australian wineries are increasingly opposed to the controversial proposal to sell wine in supermarkets – a trend which is almost certain to signal the end of the State Government push.
SA Wine Industry Association chief Brian Smedley said the more that was known about the plan, the more negative wineries had become.
“We didn’t have a clear yes or no [from wineries], but that’s probably changed as the longer the plan has been out there, there’s been a more negative reaction,” he said.
“The marketing of the proposal was that it would be a boom for SA wine, but the reality is that you can’t legislate to have only SA wine on your shelves. If you tell someone it’s a positive and then tell them you can’t do it, then people say it’s not as good idea as what we were told.”
The plan has been criticised by independent MPs, independent retailers and hotels because of its potential to put even more power in the hands of the major supermarket chains, and its risks to existing liquor businesses.
The Independent Grocers’ Association and Foodland have pledged to stock only “South Australian produced” wines, but this cannot be mandated by law.
Colin Schering, from the IGA, stands by the initial claim that the proposal would help local wine producers.
“In our case, our direction is that our owners will only stock and sell South Australian produced wine,” he said.
“We are keen to have this to happen. This is another example of helping the local producers like Spring Gully.”
However, Schering agreed that the major supermarkets could use the change to push cheap overseas wine.
“Coles and Woolies might bring in and flood the market with cheap wine from other countries. That’s their problem not ours.”
A survey done by the IGA has shown that their customers would like wine to be stocked on supermarket shelves.
Finlaysons liquor licensing partner Andrew Williams said the debate meant it was timely to have a full review of liquor licencing in SA.
“I think while our act has been good, there may be an argument that it is timely for a full review, partly to have regard to reform which has taken place in other Australian states and territory, and have regard to what’s been successful and less successful in those states,” he said.
Williams said in other states the “needs test” which currently applies to all liquor licences in SA had been replaced with community interests or more general considerations.
He said while independent grocers had indicated they would stock only South Australian boutique wine there was no way to legislate that kind of move.
“Without being a retail expert it would be no doubt a further challenge for remaining independent liquor outlets of whom the ranks have been substantially thinned by acquisition by major supermarket chains and competition with them.”
The State Government appears increasingly unlikely to proceed with legislation to allow supermarkets to stock wine in the face of the widespread opposition, and the evaporation of initial support.
Consultation on the proposal ended in March and the Government says it is still considering the submissions.
