Yellow Tail broadens its appeal

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This was published 19 years ago

Yellow Tail broadens its appeal

After snatching more than a third of the Australian category in the lucrative US wine market with its "lifestyle" wine brand Yellow Tail, upstart Griffith-based Casella Wines is trying to go upmarket with plans to release a high-margin premium wine on the domestic market.

The cabernet sauvignon, which will be sold under the Yellow Tail label next year, will sell for about $45. Yellow Tail at present sells in Australia for about $10, and around $US7 in the US.

It is a shift for Yellow Tail, which has hitherto focused on consumers looking for non-traditional wines, and not relying on food and wine matching and wine writers' columns.

Casella Wines chief John Casella said the company planned to release just 1700 cases of the premium wine.

"It's not going to be a major part of our business but it's a broadening of our strategy and it gives us a broader spectrum of customers."

"If you look at cars, there are some luxury car makers who also put out four-wheel drives and sports cars. It's much the same for us."

He acknowledged the change was partly about trying to get some respectability in the industry. But with Casella Wines now focusing for the first time on getting its wines into restaurants, the strategy gives its sales force a bigger portfolio.

"I have always wanted to have this in addition to the wines we now have under the Casella brand," Mr Casella said.

Yellow Tail, launched in the US three years ago, now sells about 7 million cases a year in Australia's biggest wine market. Its shiraz and merlot are ranked No.1 and No.2 for 750-millilitre red wines in the US.

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