Aussie Wine: Recovering after Fall??!!

From the Wall Street Journal on Jan. 25, they have this headline: "Australian Wines, Once Down Under, Rise Again" with this sub-head: "After its Yellow Tail moment, Australian wines went from being some of the world’s most sought-after to the hardest to sell. Now, signs of a recovery are emerging. A guide to the best."

Here are some of the story highlights: "Wines regularly slip in and out of fashion, but few have fallen as far as the wines of Australia did over the past decade. Once among the world’s most sought-after bottles, they are now some of the hardest to sell. Recently, however, there have been signs of a small but steady recovery. When Gordon Little launched his New York-based, all-Aussie distribution business, he found dusty old bottles of Australian wine lining retailers’ shelves. At New York restaurants, wine lists included '200 Burgundies and maybe two Australian wines,' he said. It was Shiraz, the red grape synonymous with Australia, that ignited—and later decimated—the American market for Australian wine. Starting in the late 1990s, it dominated for roughly a decade, thanks in part to two landmarks: Wine critic Robert M. Parker, Jr. began awarding high marks to big, rich Australian Shirazes, and Yellow Tail Shiraz made its U.S. debut. A cheap, mass-market brand that was cleverly packaged, Yellow Tail was easy to drink and was even favorably reviewed. Its success inspired other so-called 'critter' wines, which soon crowded the category and diminished the Australian brand. The oceans of cheap, nondistinct Shiraz, coupled with an unfavorable exchange rate following the 2008 financial crisis, helped catapult the Australian wine industry into crisis. World-wide exports fell 41%, from $2.28 billion in 2007 to $1.36 billion in 2013."

This story blamed "bad marketing" and a failure to identify the country’s different wine regions. This profile notes that there has been more interest in the past year. One wine cited was the 2014 Ashbrook Estate Margaret River Chardonnay. They conclude this specific wine "at $20 over-delivers for the price." It was also noted: "The return of small, quality producers has started to change U.S. perceptions of Australian wine yet again."

From the London/UK Guardian this past week, they have this headline: "Australia's wine exports boosted by 40% growth to China" with these highlights: "China’s increasing thirst for premium wines has helped boost the value of Australia’s wine exports by 7% to $2.2bn in 2016. Industry body Wine Australia said there was exceptional growth in exports to China, rising 40% to $520m last year."

There is lots of competition for wine sales around the world. Interesting to get this background on the history and newest trends affecting Aussie wines. When we visited Adelaide before our cruise, we regret that we did have more time to visit some wine location there. There's always the next time!! Look forward to that chance and fun!!

Full stories at:

http://www.wsj.com/articles/australian-wines-once-down-under-rise-again-1485359600

https://www.theguardian.com/australia-news/2017/jan/27/australias-wine-exports-boosted-by-40-growth-to-china-says-report

THANKS! Enjoy! Terry in Ohio

Enjoyed a 14-day, Jan. 20-Feb. 3, 2014, Sydney to Auckland adventure, getting a big sampling for the wonders of "down under” before and after this cruise. Go to:

http://boards.cruisecritic.com/showthread.php?t=1974139

for more info and many pictures of these amazing sights in this great part of the world. Now at 167,767 views for this posting.

Interesting read. Thank you!

Terry, thanks for the interesting article.

We jumped on the yellow tail bandwagon prior to our trip to Australia in 2013 and later migrated to other brands. Also, we drink a lot of Argentinian and Chilean wines that are also inexpensive and have good quality. We still take in French, Italian, German and US wines as well.

Did a great wine tour of the Hunter Valley, north of Sydney in 2013.

One can only take enough of Shiraz, and even then - it must be drinkable. What happened was that the other varietals quickly became very costly and if one is going to pay a sum for a bottle, I think folks were inclined to pay it for a traditional favorite or perhaps two mid-range bottles of something else/try something new in another region. Australia/NZ just didn't ever seem to offer "mid-range" just the lower cost shiraz and the very high end bottles. I get why - smaller productions - better wines, shipping costs, etc., vintner/estate owner choices, but still - I guess no one was thinking beyond short terms winning the market.

They should have sent some wine makers to France/Italy/California/Oregon etc to study the biz further. They make great wine - they maybe hadn't figured out how to market and sell it and grow the industry. Hopefully now, they have.

Cheers everyone ;)

Terry, thanks for the interesting article. We jumped on the yellow tail bandwagon prior to our trip to Australia in 2013 and later migrated to other brands. Also, we drink a lot of Argentinian and Chilean wines that are also inexpensive and have good quality. We still take in French, Italian, German and US wines as well. Did a great wine tour of the Hunter Valley, north of Sydney in 2013.

Host Bonjour: One can only take enough of Shiraz' date=' and even then - it must be drinkable. What happened was that the other varietals quickly became very costly and if one is going to pay a sum for a bottle, I think folks were inclined to pay it for a traditional favorite or perhaps two mid-range bottles of something else/try something new in another region. Australia/NZ just [b']didn't ever seem to offer "mid-range" just the lower cost shiraz and the very high end bottles[/b]. I get why - smaller productions - better wines, shipping costs, etc., vintner/estate owner choices, but still - I guess no one was thinking beyond short terms winning the market. They should have sent some wine makers to France/Italy/California/Oregon etc to study the biz further. They make great wine - they maybe hadn't figured out how to market and sell it and grow the industry. Hopefully now, they have. Cheers everyone

Appreciate these above very interesting details and perspectives on the Australian wines, their marketing and quality positioning, etc. Agree strongly with our Georgia friend that there are nice variety of wines from Argentina, Chile, etc. It's great as consumers to have such a wonderful range of choices and options.

Personally, we have enjoyed visiting wineries in Italy, France, Germany, New Zealand, Argentina and South Africa. Look forward to get back to Australia and doing more with their wines. Plus, upcoming in June, we will be visiting the Porto area of Portugal and then our first visit to the spectacular French region of Bordeaux.

THANKS! Enjoy! Terry in Ohio

AFRICA?!!?: Lots of interesting and dramatic pictures can be seen from my latest live/blog at:

http://www.boards.cruisecritic.com/showthread.php?t=2310337

Now at 29,192 views for this reporting and visual sharing that includes Cape Town, all along the South Africa coast, Mozambique, Victoria Falls/Zambia and Botswana's famed Okavango Delta area.

I have purchased two bottles of Yellow Tail wine ( a red and a white) at the duty free at the airport. Having tasted quite a few Australian (and world) wines, I would have to say Yellow Tail would be the worst wine I have ever tasted......even box wine is better than it. Now I can usually drink anything, but I could not finish this and had to pour it down the sink.

I am no expert but have a 200 bottle cellar and enjoy my wine. If I had the choice of Yellow Tail wine or water....water it is!

I have purchased two bottles of Yellow Tail wine ( a red and a white) at the duty free at the airport. Having tasted quite a few Australian (and world) wines, I would have to say Yellow Tail would be the worst wine I have ever tasted......even box wine is better than it. Now I can usually drink anything, but I could not finish this and had to pour it down the sink.

 

I am no expert but have a 200 bottle cellar and enjoy my wine. If I had the choice of Yellow Tail wine or water....water it is!

I would rather die of thirst than drink Yellow Tail wine of any variety and put it in the same category as Fosters beer which the rest of the world drinks but no self respecting Aussie male would touch.

One can only take enough of Shiraz, and even then - it must be drinkable. What happened was that the other varietals quickly became very costly and if one is going to pay a sum for a bottle, I think folks were inclined to pay it for a traditional favorite or perhaps two mid-range bottles of something else/try something new in another region. Australia/NZ just didn't ever seem to offer "mid-range" just the lower cost shiraz and the very high end bottles. I get why - smaller productions - better wines, shipping costs, etc., vintner/estate owner choices, but still - I guess no one was thinking beyond short terms winning the market.

 

They should have sent some wine makers to France/Italy/California/Oregon etc to study the biz further. They make great wine - they maybe hadn't figured out how to market and sell it and grow the industry. Hopefully now, they have.

 

Cheers everyone ;)

I cannot let this pass without comment. I have seen documentaries and read of Australian winemakers going to France and passing on our unique styles of winemaking, with great success.

For example, Michael and Alison Goundry of Goundry Wine fame spent quite a few years in France and were highly sought after for their skills.

I believe it was just unfortunate that fancy labels, clever marketing and greed for profit at any cost saw cheap wine dumped on an uunsuspecting USA market, which did Australia no credit because for a few more $$ a much better wine could have been delivered.

I believe it was just unfortunate that fancy labels, clever marketing and greed for profit at any cost saw cheap wine dumped on an uunsuspecting USA market, which did Australia no credit because for a few more $$ a much better wine could have been delivered.

One of our favorite wines from Australia is Rubus. We buy it by the case

Appreciate these interesting and great follow-ups. Very helpful comments!! Above is one comment about a favorite Aussie wine that was posted on my live/blog from our early 2014 trip to Australia and NZ. Thought I would post it here, too. Keep up the great sharing and excellent insights.

THANKS! Enjoy! Terry in Ohio

For details and visuals, etc., from our July 1-16, 2010, Norway Coast/Fjords/Arctic Circle cruise experience from Copenhagen on the Silver Cloud, check out this posting. This posting is now at 208,281 views.

http://www.boards.cruisecritic.com/showthread.php?t=1227923

Yellow Tail is offensive to good Australian Wine Makers.

Thought I'd share a section of an article that appeared in the LA Times Saturday (F) section today 2/18/17 that relates to the current discussion.

"How to uncork a year of wine discoveries" by Patrick Comiskey

"This is the year you go back to Australia"

"Ten years ago, Australian exports were in a moribund state. Quality wines had been squeezed out of view and out of the market by Yellow Tail and its ilk, a torrent of cheap, treacly wines without character, definition or sense of place, wines with cutesy names and cartoon animals on the labels, known collectively as Critter Wines. Serious producers watched on the sidelines as a nation's entire vinous output - with a wine tradition as old as our own - was conflated to the category of the critter.

In a decade, all that has changed. While the critters still have a foothold in the market, artisan winemakers from all over that continent are making thrilling, elegant, balanced, hauntingly complex wines, graceful reds made from Grenache and Shiraz, bracing Rieslings, toothsome Semillons, irresistible Pinot Noirs and Rhône-style blends.

Three to try: Brokenwood's thrillingly dry and long-lived Hunter Valley Semillons, Jamsheed's ethereal cool-climate Syrahs from the Yara Valley, or the Fugazi Grenache from Ochota Barrels, a wine that's as spicy and as strident as a punk anthem."

I cannot let this pass without comment. I have seen documentaries and read of Australian winemakers going to France and passing on our unique styles of winemaking, with great success.

 

For example, Michael and Alison Goundry of Goundry Wine fame spent quite a few years in France and were highly sought after for their skills.

 

I believe it was just unfortunate that fancy labels, clever marketing and greed for profit at any cost saw cheap wine dumped on an uunsuspecting USA market, which did Australia no credit because for a few more $$ a much better wine could have been delivered.

That's great to hear and unfortunately something probably not likely to be shown outside Aussie - though I wouldn't know why - I love watching food/wine docs. It makes great sense for all winemakers to share their knowledge around the world because although while certain countries have been making wine for centuries, everyone "brings something to the table" once they are cultivating vines, harvesting, fermenting etc etc.

Also, perhaps maybe more than anything - trouble shooting - how are the current challenges within any given region being met and what can be learned from that by other wine makers? Particularly when maladies comes to vines or in growing wines in harsh conditions - which some vines actually like - but for growing seasons, can be a huge challenge, along with weather, soil - everything.

I've tasted some AMAZING wines in Australia and NZ and unfortunately in the US we have been inundated with the mass supply of a few main wine makers purveying only mediocre wines. The best wines, when they come here are hard to find - unless one knows where to look, shop etc - and/or prohibitively expensive. That's not the fault of the winemakers necessarily - every country sells expensive wine, whether it's a grand cru, top varietal, or renowned winemaker. We just ended up seeing a gaping hole in the middle of the Aussie/NZ wine market here - frustrating for those of us fortunate enough to have had some very fine wine from Down Under and unlucky to have reached over saturation with a very few brands that are only average. We know this is not representative of Australia/NZ wine - therein lies the frustration.

Major thanks for sharing the word about the Aussie international wine making documentary - if I can find it, I'll watch it. Many of the streaming services are showing LOTS of great Aussie shows and movies so there's a good chance it might turn up!

Cheers :)

... coupled with an unfavorable exchange rate ...

I think this quote encapsulates it: the exchange rate is just as likely (if not more) to be the primary culprit in the post-2008 export slump. At the time, it wasn't difficult to find Australian winemakers who would tell you this. I've posted previously about "Dutch disease", and this was just one example of it in operation. Good Australian wine simply became unaffordable for many of us, particularly in comparison to equally good wine from other countries which have not had to bear the same exchange rate burden (foremost amongst them probably South Africa). If you can buy an equally good bottle of Saffer wine for half the price of a bottle of Aussie, why would you buy the latter? And in that case, why would it be any surprise that exports of Aussie wine slumped? It wasn't really anything to do with Australian winemaking getting any worse, or anybody thinking that, or anybody becoming unable to identify the country's different wine regions (which have always been well known).

And so it's no surprise that wine exports are picking up now that the exchange rate is back to more conventional levels.

Interesting. We spent six weeks in Australia. We enjoyed their wines very much. We were sailing through Milford Sound in NZ exactly two years ago.

Our friends introduced us to 'cleanskins'. Essentially wine sold in some grocery stores anywhere from $2-$4-$5 AUD per bottle. Essentially overruns from wineries. The type of wine and area is on the label. Fortunately our friend was somewhat of a wine expert and could steer us in the right direction. Some of it is plain old plont, some of a much higher quality.

The trick is to try one or two different bottles. IF you like the bottle, go back for a case or two because it might be stocked out next time. The vineyard is not identified. As I recall, the year is.

We stocked up on some amazing reds to quoff during our Australian road travels. Cannot comment on the whites. They were fine but I seldom drink them so comparison is not valid.