As the excise cost is expected to move northwards in the coming times, a winery industry body is of a view that it may result in the failure or survival for many wineries in the domestic industry.

New Zealand Winegrowers chief executive Philip Gregan said the industry has already went through a annual excise increase which is directly linked to the rise in consumer price index for the year ending March 31.

Gregan emphasized on the fact that as it was largely driven by the rise in GST, the industry is expected to face a 5% lift in the tax rates with effect from 1st July.

As the, decision is expected to make waves because of the Reserve Bank's forecast for inflation in the country. It may be noted here that the 5% hike in the tax rate would take the price to 12.5c a litre or $1.17 a case.

Gregan also said that wineries have not been able to pass on the excise rise to the consumers as retailers have been opposing the move. It is expected that the excise hike will bring many fireworks at the industry in times to come.