A TREND away from alcoholic beverages could actually be a good thing for South Australian viticulture and tourism.
The South Australian government has predicted that more than 500 jobs and an extra $64 million a year could be generated from low and no-alcohol wine products.
It has invested nearly $5 million to back the sector with a view of lifting the wine sector which was hit by the decline in the China market and global pandemic.
The project will include the establishment of a research facility at the University of Adelaide's Waite campus which will be a trial.
The project will be delivered in partnership with Wine Australia, the Australian Wine Research Institute and the University of Adelaide
The term "lifestyle wines" has been attached to no or low alcohol wines, plus those low in calories.
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SA primary industries and regional development minister David Basham said the investment would give a boost to cutting edge science and create high-quality products.
"South Australia is without doubt the Australia's Wine State this project will position our wine industry to deliver a world-class product and unlock access to significant market opportunities," Mr Basham said.
"No or low alcohol wine products are becoming increasingly popular and it's predicted the sector could create more than 500 jobs and add tens of millions of dollars a year to South Australia's economy.
"The South Australian wine sector has faced a range of global challenges over the last two years, with the diversification of the marketplace vital in meeting those issues head on while harnessing changing consumer demand."
Australian Wine Research Institute managing director Dr Mark Krstic said investing in the new product category would capitalise on its significant growth potential in domestic and export markets.
"This funding will enable industry to undertake pilot-scale production of new no and low alcohol products and better understand the market opportunities in this consumer segment," he said.
University of Adelaide vice-chancellor and president professor Peter Hj said the organisation was delighted to be part of the initiative bringing together three world-class organisations
Other components of this project would research process and sensory optimisation of the products and closely examine the market to unlock future opportunities.
"It adopts new technology to grow productivity, develop a skilled workforce and create new market opportunities," Mr Basham said.
"Underpinned by innovation, competition and profitability this will grow income and jobs for all South Australians."
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