WGGA undertook a review of a small sample of wine industry contracts, to determine the extent to which they complied with the Australian Wine Industry Code of Conduct and provide insights into the general standard of contracts in the industry.
Overall, the contracts were found to comply with the majority of core requirements of the Code:
- specification of price
- terms of payment
- identification of parties to the agreement
- identification of grapes to be purchased
- duration of contract
29 of the 32 provisions of the Code were met by at least 15 of the 20 contracts reviewed.
On the other hand, there was only one contract identified that fully complied with all provisions of the Code, although five stated that they were covered by the Code.
A number of concerns with the contracts were identified, as well as recommendations for future research and improvements to the Code as a result of the analysis.