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MARCH 21, 2005
A Big Taste for Aussie Wine Charmed by its novelty and friendliness, Americans are downing lots of reds and whites from Down Under -- 20 million cases last year Ask Americans to name an Australian wine, and they'll probably come up with Casella Estate's now ubiquitous Yellow Tail brand. But wine from Down Under has much more to offer -- on both sides of the spectrum -- than the modestly priced bottle with the orange and yellow kangaroo. While sippers and connoisseurs of every stripe debate whether Australia is the new California or Michigan, shiploads of the stuff is selling, especially in the States. Australia ranked as the No. 2 exporter of wine to the U.S. last year, second to Italy. The grape shortage in California in the mid-to-late 1990s opened the door to Aussie and New Zealand wines. While California wineries concentrated on the $15-per-bottle-and-up market, the Aussies poured in with budget wines that caught on. From 1998 to 2002, Aussie wine imports to the U.S. blossomed from 3.5 million cases to 12.4 million. Last year, some 20 million cases shipped out. The weak Australian dollar and the clarity of labels -- not to mention some decent ratings on the wines -- made Australian wine irresistible to many Americans. "I'm not sure why I like these wines, but I do, and so do my customers," says Robert Carlson, a New York City caterer. "For my customers, the names and the labels bring about an instant recognition, just like recognizable imported beer." "FUN COUSINS." Many Australian wines stack up well against their European and American competitors, but smart marketing has also driven the success. Independent marketing consultant Ann Hanson of Ann Arbor, Mich., says Australian wineries are making more wines crafted according to international tastes -- more whites with oak aging, for example -- than they previously could, because of a shortage of oak on the Continent and the big expense of importing it. Perhaps more important, especially to novice drinkers, though, is the familiarity of Australia. "Australians are Americans' favorite fun cousins," says Hanson. Australia lies far enough away to seem cloaked in mystery to most Americans, "but the labels are in English and easy to understand." Australian David Droga, chief creative officer for ad agency network Publicis Groupe, says Australian wine has attracted a lot of consumers intimidated by wine labels and the nose-in-the-air image of European wine. Droga, who lives in New York City and travels the world to oversee advertising for companies like Hewlett-Packard (HPQ ) and Nestlé, says Australia's idea of conquering the world revolves around wine and sports. "But whatever war you're in, we've got your back, and Americans like that about Australia." HIGH END, TOO. Just look at the phenomenal success of Yellow Tail. Casella Estate sold 200,000 cases in 2001, 10 times what the distributor expected. In 2004, the winery sold 7 million cases. The brand carries cabernet, merlot, shiraz, and chardonnay, all at one price. That kind of simplicity and catchy label appeals to novice wine drinkers. Besides Yellow Tail, names like Torbreck's Woodcutter's Red, Clarendon Hills Syrah Hickenbotham, D'arenberg's Dead Arm Shiraz and Ironstone Pressings, and Kaesler Old Bastard help novices remember the wine they liked so that they can buy it again. Wine producer Southcorp has launched a direct competitor to Yellow Tail, called Little Penguin. Wine retailers say the cachet built into anything Australian makes their jobs easier. At the Wine Library in Springfield, N.J., the best-selling red is Lucky Country, $12.99 and Australia's version of a Cotes du Rhone. A blend of 85% Grenache, 10% shiraz, and 5% Mourvedre, it's a peppery, fruity wine with superficial character but lots of spice and an easygoing style. At the higher end, Wine Library customers have been buying up Sanguine Heathcote Shiraz 2003 at $41.72 per bottle. In fact, three of the shop's top five red sellers come from Australia. "OAK FINISHED." Of course, the wines have their detractors. Wine writer and educator Thomas Pellechia says Australia is producing some interesting wines, but they may be growing too fast to maintain standards. The trend from Australia, he says, has been toward "forward, strong, syrupy fruit flavors." And that has a lot of serious wine drinkers complaining. To compete better with California and European wines, Australian wineries are adding oak to more of their offerings. But because of a shortage of oak barrels to keep up with the fast growth of the business, most wineries dunk bags of oak chips into stainless steel vats. Many traditional winemakers -- and drinkers -- turn up their noses at such "oak finished" rather than "oak aged" wines. Perhaps Australia's image as a country of beer-drinking rugby players just doesn't play with a certain crowd. Publicis executive Droga says he was recently challenged by an Italian colleague to a blind tasting at dinner. Comparable Australian and Italian wines, labels covered, were presented to a group of advertising executives. Says the proud Aussie: "We kicked their ass."  By David Kiley in New York
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