One of Australia's largest wine companies is seeking 35 voluntary redundancies in South Australia, citing excessive costs and decreased consumer interest in cask wine.
Accolade's general manager Wayne Ellis says the company has been forced to look for redundancies at its Berri Estates operation in the Riverland.
"Accolade has tried to avoid redundancies by carrying excess costs over many months but that cannot continue," Mr Ellis said in a statement.
Opposition trade spokesman and local MP Tim Whetstone said the move was a blow to a region doing it tough but was hopeful it would be able to absorb the job losses.
"It is a sad loss, 35 jobs is a major blow to the local workforce the region is already dealing with a high unemployment rate," Mr Whetstone said.
"However, the industry is moving ahead and we are looking at putting more product into bottles rather than boxes."
SA Wine Industry Association chief executive Brian Smedley said the company's decision reflected the shift away from cask wine.
"We would certainly see a trend within the South Australian market particularly of consumers looking for that premium bottled wine experience," Mr Smedley said.
Accolade wines also announced on Thursday that construction would begin in December on a new $40 million bottling plant on the Berri site, which could create 40 jobs when it opens by the end of next year.
Mr Ellis said the plant would have the capacity to turn out more than eight million bottles a year.
Accolade's wines includes such labels as Hardys and Banrock Station and exports to more than 140 countries.