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US' Yellow Tail Fever Taints Aussie Wines

Australia's bargain reputation hurts exports of primo stuff

By Ambreen Ali,  Newser User

Posted Apr 8, 2009 4:15 PM CDT

(Newser) – Droughts, wildfires, and weak currency have hurt Australia's wine exports—but for losing their reputation as premium vintners, the Aussies have no one but themselves to blame. When $7 Yellow Tail flooded US markets three years ago, "Australia made itself synonymous with cut-rate, generic wines," Mike Steinberger writes in Slate. Some estimates place last year's dive in value of Australian wine exports to the US at 26%.

"Consumers came to equate Australia with wines that were flavorful but also cheap and frivolous," says Steinberger. "When they got interested in more serious stuff, they turned to Spain, Italy, and France." Now South American and African wineries are chipping away at the low-cost market, too. "Australia needs to reintroduce itself to consumers—to acquaint them with the country's enormous viticultural diversity."

The emergence of bargain wines from Australia tarnished the nation's wine industry.
The emergence of bargain wines from Australia tarnished the nation's wine industry.   (Casella Wines Pty Ltd)
Wilfred Wong, cellarmaster for Beverages & More!, a chain beverage retailer, tries a Yalumba wine from Australia at a tasting event in San Francisco last fall.
Wilfred Wong, cellarmaster for Beverages & More!, a chain beverage retailer, tries a Yalumba wine from Australia at a tasting event in San Francisco last fall.   (AP Photo/Eric Risberg)
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Among industry insiders, it is widely agreed that Australia no longer has a competitive advantage in this segment of the market and that the emphasis on value wines has been a colossal blunder. - Mike Steinberger, Slate

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