Tasmania ranked No.2 for wine investment

A leading international wine magazine says Tasmania is second only to China as the best place in the world to invest in the industry.

The Drinks Business says the island state's cool climate, affordable land, abundant water and lack of pests and diseases all mean its $75 million wine industry is likely to expand.

While the magazine's Top 10 Vineyard Investments article focuses on non-traditional wine-making regions, it still rates Tasmania ahead of France's Languedoc region and the Italian island of Sardinia.

The state has become something of a mecca for wines such as pinot noir and riesling with Hobart recently hosting the International Cool Climate Symposium.

It boosted Tasmania's profile and officials were buoyed by predictions there that the island could "own" the world pinot market and be the southern hemisphere's Champagne.

Although the Drinks Business ranking has come as a surprise, the state government has already responded to the goodwill generated by the symposium with a guide book for potential investors which covers everything from revenue projections for a 10 hectare vineyard to climate change.

"Our island offers water availability, soil, land affordability, branding and biosecurity advantages over many popular wine regions," minister for economic development David O'Byrne said on Thursday.

"Our temperate maritime climate is among (our) natural strengths.

"It's perfect for producing ultra-premium cool-climate wines, which are increasingly popular worldwide."

Tasmania's wine industry currently employs around 1000 people but larger investment was signalled when Brown Brothers spent more than $32 million on several vineyards in 2010.

Money from the state's forestry peace deal was also recently allocated for more detailed industry studies into soil types and micro climates.