"It's an exciting initiative but I don't see Escarpment changing what we are doing because of the project.
"It's fair to say there is a general interest in low alcohol wines and the health benefits.
"The industry needs to be at least researching and addressing the question.
"But we are not really seeing a demand."
Mr McKenna said while health benefits were driving the initiative, it seemed partly like a political move to appease anti-alcohol lobbyists.
"It all seems very politically correct."
His winery already produces a Reisling with 9 per cent alcohol content, lower than most wines.
"This research is looking at something even lower than that."
He said drinking wine with a meal was a healthy way to imbibe.
"We always promote our wines to match food."
It is hoped a number of viticulture and winery tools will be developed during the research.
"The programme will produce tangible outcomes for the grape and wine industry and the economy as a whole," said Philip Gregan, CEO of NZ Winegrowers.
He said there was an increasing domestic and international market for the wines.
"Our point of difference will be producing premium wines that can be naturally produced using sustainable viticultural techniques and native yeasts - providing an important point of difference to existing processing methods."
Mr McKenna said the taste of low alcohol wines through current methods was "acceptable."
Pinot Noir, which many Wairarapa vineyards are renowned for, could be made into a "palatable" low-alcohol wine, he said.
He said it would be different to what people expect in a Pinot Noir but it was possible.
Alexis Moore, winemaker at Gladstone Vineyard, said she wasn't interested in producing low-alcohol wines.
"I think it will be interesting to see the outcome, it's a niche in the market and quite specific.
"There's bound to be people interested in that product."
She said her impression was that it was the large-scale wineries participating in the research. "As a small producer, the demand is not there."
