AUS: Winemakers call for extra funds to boost overseas marketing

May 7, 2015

(ABCNet) - The Australian wine industry has a "fleeting window" of opportunity to boost exports, and needs extra funding to make it happen, according to the Winemakers Federation of Australia.

The WFA has called on the Federal Government to provide $25 million over four years to the statutory marketing body Wine Australia.

It says that, with the Australian dollar sitting below 80 US cents, an uptick in demand for wine in North America and the recent signing of free trade deals with Asian nations, now is the time for a strong promotional push into export markets.

Chief executive Paul Evans says Wine Australia does not have the required funds to do the job adequately at the moment.

"They are doing the best job they can but the resources available pale into insignificance compared to what we are competing against," he said.

"Last year, France alone received around €140 million ($199 million) to do the same kind of job we are asking Wine Australia to do with around $5.5 million."

Mr Evans said the additional funds would go toward giving the Australian industry a meaningful presence at international wine shows and launch comprehensive in-market programs in North America and China.

Tax reforms pushed back

Calls from the majority of the wine industry for reform to the wine equalisation tax rebate have been referred to a Federal Government discussion paper ahead of the Tax White Paper.

The Winemakers Federation of Australia, along with a number of other representative bodies, is calling for the rebate to be scrapped for New Zealand producers and on bulk and unbranded wine.

Mr Evans says the original intent of the rebate, which was to strengthen regional employment in the wine sector, has been distorted by unintended businesses claiming the rebate.

"The rebate is playing a very important role in supporting branded wine producers out there in the regions," he said.


Share: Delicious Digg StumbleUpon Reddit Furl Facebook Google Yahoo Twitter

Comments:

 
Leave a comment





Advertisement