South Australia’s wine industry is set to receive a major $109 million support package, with growers offered loans of up to $500,000 as the sector grapples with global oversupply, declining grape prices and changing consumer demand.
The State Government has unveiled the South Australia Wine Industry Transition and Growth Package, bringing together financial support for growers, investment in international markets and measures designed to help the industry navigate a period of significant change.
At the centre of the package is a $100 million government-backed loan scheme for growers looking to transition unviable vineyards towards more sustainable and higher-value land uses.
Eligible growers will be able to access loans of up to $500,000, with no principal or interest repayments required for the first two years.
It comes as South Australia’s wine industry, which generates $2.4 billion in annual revenue, faces ongoing market pressures.
The state is home to 18 wine regions, almost 700 wineries and more than 73,000 hectares of vines, while the industry supports more than 90,000 jobs and produces 80 per cent of Australia’s premium wine.
Premier Peter Malinauskas said the package had been developed with the industry to support both its immediate challenges and longer-term future.
“South Australia’s world-famous wine industry is a key contributor to the state’s economy, driving trade, jobs and regional growth,” the Premier said.
“This comprehensive support package, developed with industry, will help position our wine sector for long-term competitiveness.”
Beyond the loan scheme, $5 million will be used to extend and expand the Global Wine Growth Program for another two years, with a focus on increasing international demand for South Australian wine.
A further $675,000 advertising campaign will promote South Australia’s premium food and wine offering, with the investment also intended to support tourism opportunities across the state’s wine regions.
The package also addresses some of the practical challenges facing growers considering what comes next for their land.
Another $1 million over two years will provide access to independent diversification planning advice, while $2 million has been allocated towards finding a solution for CCA-treated timber vineyard posts, including work to establish regional aggregation and storage sites.
A further $500,000 will support the assessment and development of industry-led solutions for surplus wine inventories.
Primary Industries and Regional Development Minister Clare Scriven said the package had been shaped through consultation with the state’s wine sector.
“We have worked closely with the state’s wine sector to develop a balanced and targeted response that supports business transition, expands market opportunities and helps build long-term economic resilience,” Minister Scriven said.
“This investment will help drive demand for South Australian wine at home and overseas, while supporting innovation, diversification, market growth and regional development.”
A new Wine Industry Coordinator will also be appointed to work across the sector, government and regional stakeholders, with a focus on identifying barriers to the industry’s transition.
In the Riverland, proposed planning changes through the Riverland Economic Recovery Joint Amendment are intended to create further opportunities for housing, employment land and alternative land uses.
The announcement has been welcomed by Adelaide-headquartered global wine company Vinarchy, which has nearly 1,000 employees across South Australia.
Vinarchy was established in 2025 following the merger of Accolade Wines and Pernod Ricard Winemakers and has major wine brands including Jacob’s Creek and Hardys in its portfolio.
Vinarchy Chief Corporate Officer Jeremy Stevenson said the package recognised both the pressures currently facing the sector and the importance of creating new opportunities for growth.
“This is an important commitment to South Australian wine and the regional communities whose livelihoods depend on it,” Jeremy said.
“The package provides practical support to help the industry navigate structural change, alongside investment to create new opportunities for growth.”
Vinarchy also welcomed the investment in building international demand, with Jeremy saying opportunities to grow South Australian wine overseas could have benefits throughout the supply chain.
“Growing demand benefits the whole industry. Every opportunity to build our presence overseas can create value here at home, from our growers through to the people working in our wineries and regional communities.”
Vinarchy said it was investing in brands including Jacob’s Creek and Hardys, as well as innovation aimed at attracting new consumers to wine.
“With our global headquarters in Adelaide and nearly 1,000 employees across South Australia, we are deeply invested in the local industry’s success,” Jeremy said.
“We look forward to working with the Government and the broader sector to deliver lasting benefits from this package.”
South Australian Wine Industry Association President Kirsty Balnaves also welcomed the investment, saying growers and winemakers had been navigating a challenging period of structural adjustment and changing market conditions.
The $109 million package was developed following consultation with key industry stakeholders and a wine industry forum convened by the Premier last month, with the measures aimed at helping South Australia’s wine regions adjust while building new opportunities for growth.
