William Hill Winery in Alexandra, in receivership, could have suffered from a combination of issues in the district's wine industry at the moment, New Zealand Winegrowers deputy chairman Steve Green said.
Mr Green, of Carrick Winery at Bannockburn, told the Otago Daily Times established wineries like William Hill were facing more competition than ever before as new operators started to come on line.
He said lesser-known wineries were selling wine cheaply in order to move stock, which potentially created problems for companies with more expensive labels.
"Smaller wineries might be struggling to establish themselves so they're selling wine at lower prices simply to generate cash flow, which is having an effect on more established wineries.
That's compounding on other issues in the industry, such as the economic downturn," he said.
Mr Green said some people had stopped buying expensive labels and although Central Otago's wine industry was buoyant as a whole, there was the potential for further casualties.
"Because of the gold rush that's taken place from about 2000 to 2005, a lot of new wineries are putting cheaper wine on the market without any long-term approach.
"It could cause problems in the next year or so, especially with the economy the way it is.
"But in a business like the wine industry two years is still very much short-term.
"This is a relatively minor glitch rather than a long-term sustained problem and it will correct.
"There will be some stronger wineries that come through this," he said.
Mr Green said it was sad for people in the New Zealand wine industry to see William Hill in receivership, as it was such a pioneering vineyard.
"They have been in business for more than 25 years and the Grant family have really helped put Central Otago wines on the map," he said.
