Wine industry leaders are worried the latest tax hike by the Government will be too much for struggling producers to bear.

From July next year winemakers will have to pay around $1 more per case in excise – a cost they will have to incur themselves.

New Zealand Wine Growers chief executive Philip Gregan says that could be the final straw for some wineries.

“We are seriously concerned about what will happen come next July."

"There’s no simple way for producers to pass those excise costs on, so they will have to fund things one way or another, and for already struggling businesses this could be the final straw."

Philip Gregan says if the Government wants to draw more from the industry it should target consumers rather than producers.

"Winegrowers would love to get rid of the tax completely, but of course that’s probably not going to happen, so the next best thing is to levy the tax at a different point, and that’s something they’re very supportive of.”

Mr Gregan says with only two players in the key supermarket retail sector, it will be easy for them to resist any attempt by wineries to pass the cost on.