AAP
Australia's wine industry needs to show a more united front to defend market share and create opportunities in emerging markets, South Australia's Agriculture Minister Michael O'Brien says.
The nation also needs to learn lessons from past experiences in order to reposition itself as a quality wine producer, the minister told a wine industry day in Adelaide.
"I think we have debased and debauched the Australian brand in the UK market - with the two-for-one offers and all the rest of it. We don't want to make that mistake in the rest of the world."
The wine industry is second only to the mining industry as a key contributor to the state's economy, generating more than $2.15 billion for South Australia in 2008-09, he said.
"It has a significant role in creating the cultural ethos of this state," he said.
The industry is going through a difficult period of structural adjustment as it tackles oversupply, with maturing markets and increased competition particularly from new world competitors, Mr O'Brien said.
"The challenge now is to re-focus on defending market share and generating investment for new growth opportunities," he said.
Sales growth has slowed in mature markets such as the US and the UK but the minister believes there is still potential for additional sales in the US, which in value, rather than volume terms, has overtaken the UK as our largest export market.
Mr O'Brien also believes there is enormous potential for Australian wine and food in China, and an opportunity in India as well.
"(Australia) needs to create its place in the Chinese market as a producer of high quality wines," he said.
Rival wine producers such as France and Italy have slicker marketing approaches than Australia's, which is often advertised state by state.
"We have to show a unified front on getting into new markets," he added.