New Bill Could have Consequences on Wine Industry

The Sale and Supply of Alcohol Act (Community Participation) Bill is being viewed as a major blow to the New Zealand wine tourism industry, according to local Winegrowers.

The Justice Select Committee, the Sale and Supply of Alcohol Act (Community Participation) Bill, outlined that the proposed policy will be that licensing authorities could decline a renewal of a license where it is inconsistent with conditions on location or licence density in the relevant local Alcohol Policy (LAP).

CEO of NZ Winegrowers, Phillip Gregan, said that the organisation supports the intention of the Bill, which is to increase community involvement and reduce alcohol harm. However, Gregan added that the unintended consequence highlighted to the Committee is that the Bill could greatly impact wine tourism and Trails.

"This Bill is not supportive of wine tourism's contribution to our regions or New Zealand's world-renowned wine industry," said Gregan.

"Cellar doors are traditionally located at the vineyard or winery, which makes sense as this is where the wine is produced. They can't relocate elsewhere, and for wine trails to operate successfully, cellar doors need to be near each other."

This Bill could mean that some cellar doors will now be unable to sell wine and forced to close if an LAP imposes proximity provisions relating to sites such as schools or a church or if there are restrictions on the density of licenses. These provisions would apply irrespective of whether the cellar door is well-run or valued by the community. 

"This makes little or no sense given cellar doors are one of the lowest risks licenses, where wine is available to be tasted, enjoyed, and purchased."

It is another hurdle for wine businesses already struggling with surging production costs, labour shortages, and increasing excise tax.

"It is deeply disappointing that the Committee has not responded to our submission. There is little doubt this Bill will have negative consequences in our wine tourism regions, where wine tourists bring much-needed income to support local jobs and businesses."