"This is a great example of the primary industries and government working together to support research and development and create high quality, value-added products. It will be major boost to the collective brand of New Zealand wine," Guy said.
New Zealand Winegrowers chief executive Philip Gregan said the project would capitalise on domestic and international demand for high quality, lower calorie and lower alcohol wine.
"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," Gregan said. "The programme will produce tangible outcomes for the grape and wine industry and the economy as a whole."
Tim Lightbourne, co-founder of Invivo Wines, said "lifestyle" wines were growing in popularity.
The Auckland-based company began producing a sauvignon blanc in 2010, called Belle, which has 9 per cent alcohol content (the average is around 13 per cent) and 330kj per glass.
Pernod Ricard Winemakers has recently released a low-calorie, low alcohol wine called Flight, which is marketed under its Brancott Estate label and comes in a sauvignon blanc, riesling and pinot gris.
The company's New Zealand managing director, Fabian Partigliani, told the Herald this month that Flight's alcoholic content was lowered through harvesting the grapes earlier, rather than a reverse osmosis process sometimes used to reduce alcohol that "compromised taste".