Identity crisis for our wine regions

South Australian wine regions are in danger of losing their unique identity as own-brand labels flood the market.

REVERED wine regions such as the Barossa are at risk of losing their identities because of the "homogenisation" of liquor chains, the industry warns.

A federal parliamentary committee has heard the dominance of the two big supermarkets is leading to more own-brand wine labels - resulting in a decline in choice and diversity.

Winemakers Federation of Australia chief executive Stephen Strachan claims the supermarkets' own brands came at the loss of "intellectual property that has been established by the wine sector over generations" including "winemakers' stories, terroir, regionalities".

"From the consumer's perspective there is now no discernible difference between (the supermarkets') own label and the array of other brands in the market place," he told the committee.

"The market place is being homogenised to the point where only price matters."

The committee heard Coles and Woolworths dominated the market, owning 70 per cent of liquor stores - up from 45 per cent a decade ago - and controlling 80 per cent of the supermarket share in Australia.

SA independent senator Nick Xenophon wants the dominance of the supermarket giants to be "broken up".

"The reputation of the South Australian wine industry that has been built up over 150 years is at stake here unless we take action now," he said.

Prominent Barossa winemaker Louisa Rose warned years of marketing and establishing identity could be at risk. "The wine industry in Australia has spent a huge amount of time and effort building up brand names and identities - (such as) in the Barossa for many years," she said. "It really is up to the industry to convince customers that there is worth in regional identity and individual brands."

Senator Xenophon said the concentration had evolved because "governments of both persuasions over the years have been asleep at the wheel" and he called for controls on market dominance.

"Unless we take action now there's a potential catastrophe looming," Senator Xenophon said.

Australian Food and Grocery Council chief executive Kate Carnell said own-brand products now accounted for 25 per cent of supermarket sales in Australia.

In a statement, Coles said: "We work with many great wine producers on both private label and branded products." Woolworths said it "operates less than 10 per cent of Australia's packaged liquor licences".

It is expected that both supermarkets will be asked to give evidence to the committee.