Australian wine group Palandri Wines has developed a fully recyclable plastic and aluminium packaging as an alternative to the traditional wine bottle, according to local reports.

The company said today (22 November) that it has spent 18 months developing the packaging, which it has dubbed the "Cheer Pack".

Palandri hopes the Cheer Pack will boost export earnings by A$32m (US$24.7m) in the next two years. Last month, the company said that it had "bucked the trend" of the "doom and gloom predictions" for the Australian wine industry with rising profits in the year to 30 June.

CEO Darrel Jarvis told the Australian Associated Press news agency that Palandri is in talks with an international airline that is interested in saving weight and space on long haul flights.

"They recognise the Cheer Pack as an innovative and important development in the wine industry," Jarvis told the AAP.

"The Cheer Pack's innovative design is small and convenient to carry, takes up far less space than a wine bottle, and also meets a lifestyle requirement."

Palandri will make its first shipment of newly packaged wine next week, exporting 3,500 cases to Canada, the report said. The winemaker expects to export over 15,000 cases of Merlot, Shiraz and Chardonnay to Canada over the next six months.

The initial design for Cheer Pack is 750ml, but Palandri said it could create any size from 187ml up to one litre.