Supermarket scrutiny turns attention to winemakers

The Australian Grape and Wine association has called for greater transparency from liquor chains. (James Ross/AAP PHOTOS)

Australians want the wine industry to be more transparent, a new report reveals, as big retailers come under fire from winemakers who find their behaviour "cut-throat".

A survey of more than 1000 Australians by YouGov for retailer Naked Wines found many wine drinkers want transparency and fairness in the industry. 

Roughly two-thirds said they would buy more wine if they knew the retailer supported independent winemakers. 

A similar number would buy more if they knew the winemakers were getting a fair deal.

The call comes as supermarkets face increased scrutiny after the competition watchdog launched legal action against Coles and Woolworths for allegedly acting as an "oligopoly" with limited incentive to compete on price.

An Australian Grape and Wine Association submission to a Senate inquiry in March also called for greater transparency from the major liquor chains and more oversight from the competition watchdog.

Winemaker Geoff Thompson from Grounded Cru in Mclaren Vale, SA, told AAP several factors contributed to the industry's struggles.

"I didn't want to be supplying retail giants - it's cutthroat," he said.

“The reality is the industry is tough at the moment with oversupply, the wash-up of the China tariff issues, reduced drinking habits, cost of living pressures and the global economy."

The four largest liquor retailers - Endeavour Group, Coles, Metcash and Aldi - are referenced by Australian Grape and Wine in their submission to the senate inquiry.

The association said the four held a market share of almost 70 per cent, with Endeavour and Coles alone having a 55 per cent share.

Endeavour Group, which represents Dan Murphy's and BWS, said it worked with several retailers.

"We are deeply committed to supporting Australian winemakers, offering them a selection of platforms to showcase their incredible talent to a broad customer base,"  a spokesperson told AAP.

A Coles spokesman said the supermarket giant understood the tough conditions for suppliers.

“We partner with more than 450 wine suppliers, with the vast majority of them small and medium in size," he said.

The federal government has launched an inquiry into the wine industry, expected to hand down its report in February.

Paul Connell from Naked Wines welcomed the review but said immediate action was necessary.

"Right now, it's alleged that retail giants are misleading Australian consumers whilst short-changing winemakers, and it's not the first time this has been raised,” mMr Connell said.

“Enough is enough."

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