growth or prejudice quality.

The image of a man drinking wine, bottles to bottles until get drunk is no longer seen. People do not drink wine in quantity but prefer quality alcohol. Sales in cask wine decline whereas profits in bottled semi-premium or premium wine increase. The reason for this can be explained by: – Quality table wine has its own image and status, engenders high consumer involvement, provides variety, and has a range of flavour complexity. It is therefore a stronger alternative to other non-alcoholic beverages (soft drinks, bottled water, fruit drinks and coffee) than is beer or spirits. Quality wine has acknowledged health attributes. Recent research showed its effects in reducing cardio vascular disease. – People look for more spiritual meaning in their lives. They favour healthy products, healthy lifestyle and show environmental concerns. Media, advertising, transparency, and openness in marketing. Many of these trends favour the Australian wine industry. Wine will meet the future consumer’s demand for individualised, customised products which are natural, environmentally friendly and healthy. 1. 1. 4 Political and legal forces

The Australian wine industry has set a target to be the world’s most influential and profitable wine producer in the Year 2025. It is supported by government in terms of providing a positive investment climate and facilitation infrastructure. Taxation – Certainty in the retention of the current taxation level and structure for wine and brandy – Review the method for valuing trading stock, particularly the maturation of wine stocks geared to premium wine production – Maintain the current vineyard depreciation provisions – Vary other taxation provisions which inhibit growth or prejudice quality.

Facilitation – Maintain support for industry research and development – Enhance support for wine export promotion – Upgrade Government contributions to training and to strategic data collection – Continue the commitment to industry’s pro market self regulation – Adopt appropriate water access and pricing policies. 1. 1. 5 Technology Technology is of vital importance to Australia wine industry. It can help to improve productivity, economic of scale, efficiency and quality of products. In addition, the industry is also strongly committed to environmentally friendly production.