ACCC push for new wine rules

AUSTRALIA’S competition watchdog is calling for changes in the wine industry but the representative body for grapegrowers and winemakers says the regulator simply doesn’t understand the business.

In a report on the wine grape industry, the Australian Competition and Consumer Commission made 10 recommendations, including that big winemakers make payments within 30 days of grape delivery.

“We remain concerned about harmful market practices we have uncovered during the past 12 months, which stem from the bargaining power imbalance that exists between winemakers and growers,” said ACCC deputy chair Mick Keogh.

The ACCC said it would begin investigating contracts it considered unfair. It also called for changes to how winemakers reported grape prices, recommending they report the actual prices paid after each season rather than announce “indicative prices” in December.

Australian Grape and Wine chief Tony Battaglene said the report was “regulation for regulation’s sake” and argued the grape price reporting proposal was unworkable.

“Despite the work we’ve done with the ACCC, they’ve failed to understand the industry,” he said. “A lot of recommendations don’t make sense.”

Fears for Penfolds in ChinaONE of Australia’s top wine executives has raised concerns the nation’s most famous label, Penfolds, could be used as a “pawn” in the US-China trade stoush.

Treasury Wine Estates chief Michael Clarke flagged his concerns after wine shipments were held up last year at Chinese ports. In a briefing for investors yesterday, Mr Clarke said he hoped Australian politicians, including Prime Minister Scott Morrison, would choose their words wisely so as not to inflame any trade tensions with China.

Treasury Wine now earns 70 per cent of its earnings from its higher-end brands, led by the famous Penfolds brand, which has become especially popular in China in recent years. Penfolds is Australia’s only true global top-end brand, and its Grange release is highly awaited by wine lovers.