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Holding on tight to the Yellow Tail

Two days ago I could hardly believe my eyes. It is about two years since I have poked my head into the Casella winery at Griffith, which has for years been a relatively small and modest family-owned affair. It is still family-owned, but things have changed a bit. Gearing up to process an unbelievable 50,000 tonnes in 2003, a two-acre shed is presently under construction (doubling what had previously been doubled just a few months ago) and a new tank farm is being added. All of which will be in place prior to the 2003 vintage which, as fate would have it, is shaping up about two weeks early. All this is on the back of the most spectacularly successful new wine brand ever launched by an Australian company into the US market, [Yellow Tail]. Company boss John Casella doesn’t even want to commit to an annual sales figure, since it’s increasing at such a rate it would hardly be accurate. Several hundred thousand more cases are on their way to the US prior to the end of January. This coming January. A hundred containers are on their way even before Christmas. Yellowtail was only launched in the US last June, but appears to be closing on Rosemount to move into second place of all Australian wine brand sales in this lucrative market. No wonder other companies are scratching their heads. Copycat brands are already close to release. Gallo has a ‘Black Swan’ label in the pipeline and McGuigan Simeon is close to launching its ‘Crocodile Rock’ brand. Southcorp has dropped the price of the Lindemans Bin no. range to match the price of Yellow Tail, which sells on average across the US at $6.50 per bottle. Contrary to much of the outspoken criticism of the brand in Australia, notably from Brian McGuigan himself, the wine sells in the US at a healthy price point and margin. John Casella is contemplating the possibility of releasing the brand in Australia, but has yet to be convinced that the same recipe that has done so well in the US and other markets around the world will work in this country. Watch this space.

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