The major supermarkets are moving into marketing their own brands of wine, but there is concern in the industry that home brands would not be obvious to consumers. Winemakers' Federation spokesman Steven Strachn says the more aggressive approach by the supermarkets will undermine the diversity of the industry.
"We will be facing an environment where the real drivers around purchasing of wine are going to be more and more about price and I don't think that is healthy at all," he said. "I think we want an industry that has diversity of production, that has a large range of producers offering consumers a wide variety of different products."
But retail giant Woolworths has rejected the winemakers' claim. Woolworths spokesman Luke Schepen says the company does not buy wine from the major players and the home brands provide a new opportunity for smaller operators.
"We mostly deal with mum and dad companies and smaller wineries that see the benefit of a private label market and they can actually deliver some really good quality wines to the consumer at the end of the day," he said. "We do pay fair prices and I suppose how we can deliver really good value for the customer is that we don't have all those marketing costs."
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