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Is Yellow Tail’s success holding back premium wine sales to the US?

Depending on who you talk to, Australian wine represents between 8-9% by volume of wine imports to the US. Without Yellow Tail, Australia’s share of the US market would drop to around 5%. Success story as it is, is Yellow Tail’s success hurting Australia’s ability to sell its top-end wine? Not so, according to a number of US market analysts, who argue that just because Yellow Tail dominates its sector, it doesn’t necessarily influence the performance or penetration of other Australian wines in other sectors. Today it’s harder than ever for Australian wines to succeed above US$20, the hottest-contested segment of the US market, which has historically been the strength of the Californian wine industry. A common theme encountered in my two visits to the US this year have been the narrowness of the distribution opportunities for top-end Australian wine, which directly affects the present narrowness of the Australian offering. Americans learn of many high-profile Australian wines, but in most cases, then struggle to find them.

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