Fortified wine sales halve 

Producers of fortified wines say an excise tax increase is crippling business.

Fortified wines such as port and sherry have been caught by the tax increase on beverages containing between 14% and 23% alcohol by volume, which was introduced in May.

The government increased the tax to discourage young people drinking light spirits, by making them more expensive.

At the time, the wine industry warned the price increases would hit the makers of fortified wines hard.

Now the chief executive of New Zealand Winegrowers , Phillip Gregan, says June figures confirm this - with sales down 53% on the year before.

"There is no doubt that the small number of wineries who produce and sell fortified wines are experiencing major difficulties as a result of the tax increase and the resulting sales slump. No business can cope with a 50% reduction in sales, particularly ones carrying high levels of stock as do fortified wine producers."

Gregan says the government should revisit the excise issue before affected wine producers lose their businesses.