You are currently viewing the International Edition. You can also switch to the Hong Kong Edition.
Saturday 4 July 2015

Yellow Tail maker to push US$100 wine

16th October, 2013 by Lucy Shaw

Casella Wines, makers of Yellow Tail, is due to give its US$100 wine brand a big push in order to attract new markets amid narrowing profit margins.

Casella’s managing director, John Casella, is looking to push his US$100, 1919 brand

Its 1919 range, which costs 13 times the amount of an average bottle of Yellow Tail, includes a Shiraz and a Cabernet Sauvignon made from grapes grown in the Barossa Valley, Wrattonbully and Coonawarra regions.

The range is named after the date the first Casella family vineyard was planted in Sicily by Giuseppe Casella on his return from World War I.

Australian winemakers are seeking new ways to increase earnings after being affected by a global glut of wine grapes and the strength of the Australian dollar against the US dollar.

Earlier this week, db reported that fine wine producer Tahbilk has been unwillingly forced to enter into the discounting game at Australian supermarkets.

Wines in the Casella stable, including 1919 (centre)

“We have to discount in order to remain competitive against the other brands, but it’s not a race to the bottom. The bigger wine companies can do that but it’s not where our future is,”  Tahbilk’s export sales manager Matt Herde told db.

At the other end of the market, Casella is due to launch a range of wine spritzers under the Bondi Road brand, which will be bottled at a brewery built with a loan from Coca-Cola Amatil Ltd.

The company will make use of lesser quality vintages that would otherwise be mixed into lower-value wine blends.

“They help us reach the consumer who might be drinking ready-to-drink bottled cocktails,” Casella’s managing director, John Casella told Bloomberg.

“They might jump to this and then jump to wine products,” he added.

Casella will also sell bottled Yellow Tail Sangria targeted at the US hispanic market.

Australia’s wine exports fell 39% to a 12-year low this year, according to Wine Australia. Casella however, has performed well in the US this year, with year-on-year sales volumes up 5% after a 0.2% decline last year.

The company put the recovery in part down to the picking up of the global economy.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

If that's interesting, how about these?

Top 10 wines in the US press

An impressive Tannat-Merlot-Zinfandel blend from Uruguay and a Vernaccia from more...

Delegat aims high with new Barossa brand

Oyster Bay owner Delegat has launched “a new global brand” from more...

Bilingual 'tool' demystifies wine tasting

The Australian Grape and Wine Authority has developed a new "tool" which more...

Supplier Relationship Manager

London, United Kingdom

Constellation to buy Meiomi for $315m

Constellation Brands is to buy Napa-based wine brand Meiomi for $315 million, more...

The Proust Q&A: Darren Rathbone

The CEO and group chief winemaker of the Rathbone Group talks to db about more...

Beck's forced to issue $50 refunds

Anyone that has bought a Beck's beer in the past four years could be entitled more...

Global Wine Buyer

London, United Kingdom

Competitive

AB InBev invests $1.5bn in US

Brewing colossus Anheuser-Busch InBev has announced plans to invest over US$1 more...

Hardys invests £4m in summer of cricket

Hardys has unveiled a new £4 million consumer marketing campaign to tie in more...

Red wine could help fight depression

A component found in the skins of red grapes could be used to treat depression more...

Business Development Executive

London, United Kingdom

£25-£30K + benefits, depending on experience

Oregon producer takes international view

One of Oregon’s youngest wine estates has partnered with Jackson Family Wines more...

Diageo appoints North America president

Deirdre Mahlan, Diageo's chief financial officer, has been announced as the more...

Winemaker fined $35k over toxic waste

An Australian winemaker has been fined AUS$35,000 (£17,000) after he was found more...

Social Media Editor

Competitive

Top 10 wine brands 2015

In a year that saw major shifts in the global wine market, the drinks business more...

US wine brand hopes to ape craft beer success

A wine brand from California is hoping to ape craft beer’s success in the UK more...

US Senate passes bill to boost spirits exports

The US senate has been applauded by members of the spirits trade for passing a more...

UK Sales Manager

London, United Kingdom

Top 10 wines in the US press

A Texan Albariño, NY Riesling and Californian Syrah are among the wine tips more...

Most expensive cocktail covers $32m heist

The world's most expensive cocktail was never actually sold and was instead more...

Hart Davis Hart biggest in US

Chicago-based wine auctioneer Hart Davis Hart is the market leader in the US in more...

Coors Light heads home

Sometimes, the route to excellence is a process of devolution rather than more...

China presents a 'long, slow opportunity' for Australian wine

China has slowed down its demand for fine Australian wine, but there is still more...