A $3 Australian Chardonnay soon to hit American stores is causing concern across the domestic industry for fear it will weaken the perception of Australian wine in the tough US market.
‘Down Under’ will be made and bottled by Bronco Wine Company in California, produced from bulk Chardonnay juice, imported from Australia and sold for a reported US$3 a bottle.
Bronco is one of the largest wine companies in the US, also responsible for the successful Californian wine Charles Shaw, which had a price tag of US$2 and became known as ‘Two Buck Chuck’.
‘Down Under’ goes against the regional focus and quality message the Australian Wine and Brandy Corporation (AWBC) has been driving for Australian wine in foreign markets.
Pricing has also been a key focus, working to lift the profile and perception of the nation’s wine in overseas markets.
Meanwhile, tough competition from other New World producers like Argentina and Chile have also been giving the Aussies a run in the US market.