By Ian Neubauer
The Australian wine industry should move to meet unfulfilled demand for higher-priced wine in the US to secure a sustainable future, according to a report released by investment bank Rabobank.
The report said demand in the US for wine priced between US$9 and US$12 can provide the Australian wine industry with a means to break away from its image as a supplier of inexpensive wines.
“For the Australian wine industry this means improving its global perception in order to grow in value, encouraging consumers to trade up and to choose Australian when moving to a higher price point,” said Rabobank analyst, Vera Zelenay.
“In spite of its current economic challenges, the US trend toward trading up to higher priced wines continues to grow, though at a slower pace, and is expected to continue growing over the next few years.”
The report coincides with Oatley Wines’ launch of Robert Oatley Vineyards in the US and the first shipment of 300,000 bottles that will retail at the US$20 mark. Wirra Wirra has also recently returned to the US and launched a range of new varietal blends featuring revised packaging and a focus on quality.
“Our domestic Australian sales have never been stronger, so the time is right to focus our attention on the most important export market in the world, the United States,” said Wirra Wirra managing director, Andrew Kay.
Wirra Wirra wines are now available at specialty wine stores and fine restaurants in the US and are priced between US$18 and US$60.
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