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Tag Archives: Yellow Tail

Winebits 312: Sales trends edition

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YellowTail growth resumes: Remember all those stories about how the strong Australian dollar and YellowTail’s financial problems were going to mean the end of an era for Aussie wine? Not true, apparently. The biggest imported brand in the U.S. expects 2 1/2 percent gorwth this year, reaching almost 9 million cases. Driving that growth are the brand’s two sweet red labels, including a sangria. That YellowTail has rebounded from its problems says much about its marketing skill, but also speaks about its clout with retailers. How many other brands could have slumped the way YellowTail did, but not lose shelf space and even added space for two more wines? In this respect, Big Wine is becoming more and more like other consumer goods, be they ketchup or detergent, with all the means — good and bad — for the consumer.

Is craft beer headed for a bust? This matters to wine not only because craft beer competes for drinkers with wine, especially in the younger demographics, but because the growth in craft beer (“But even such a healthy rise in consumer demand won’t be enough to sustain the many new breweries jumping into the marketplace“) has similarities to what happened in California with “boutique” wineries heading into the recession and with the unprecedented growth in moscato and sweet red over the past couple of years. What’s interesting is that someone in craft beer has noticed what’s going on, while almost everyone in wine was in denial before the recession and during the moscato and sweet red boom.

If you can sell wine on-line. ..: You can sell a lot of it. That was the experience of the British supermarket chain Tesco, which doesn’t face the three-tier restrictions that U.S. retailers face in this country. The story, on the drinks business trade magazine site, says sales may have gone up as much as 51 percent over the same period last year, and offers all the reasons why that is so. Contrast this with Amazon’s wine marketplace, which after nine months still can’t sell wine in all 50 states.

One billion bottles of Yellow Tail

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yt.jpegOr more than 10 billion glasses, if you’d prefer.

Despite everything — the jeers from critics, the blame for sinking the Australian wine industry, its role as one of the first livestock wines — Yellow Tail has thrived. How about these numbers?

The company, despite its struggles with the pricey Aussie dollar, recorded its best year ever in fiscal 2013, with sales by quantity increasing 8 per cent. Meanwhile, some 11 1/2 million cases a year are sold in the U.S., making it the most popular foreign wine in the country. That’s impressive to begin with, and even more so for a brand that didn’t exist before the beginning of the 21st century.

In all of this, Yellow Tail helped change the way Americans drink wine, as important as Two-buck Chuck and the arrival of the multi-national wine companies. If nothing else, it was one of the first of the international style wines, fruity and easy to drink, and it was cheap.

Yellow Tail boss John Casella makes no apologies for this. I’ve met him twice, and each time I was part of a group made up of wine types much more highfalutin‘ than the Wine Curmudgeon. Casella just stared them down, politely, and his refrain was the same: “If consumers want a simple, fruity wine at a fair price, what’s wrong with giving it to them?”

Nothing, of course, which is why his company has produced 1 billion bottles. I’m not a Yellow Tail fan, and only one of the wines has been reviewed here in almost eight years. They are too fruity and too simple; I prefer wines that are more interesting, and there are many at the same price.

But lots of people don’t like those wines, or can’t find them, or even know they exist. And this has helped Casella build what may be the most successful wine company in Australia. That’s the thing to keep in mind when you read the other pieces about Yellow Tail’s milestone, articles that will almost certainly focus on the stuff in the second paragraph of this one. Yellow Tail’s success makes the company so easy to dislike that too many of us lose sight of why it is successful — and what that means for wine.

How wine commercials on TV have changed — or not

Yellow Tail, the Australian wine brand that consumers love and that wine critics love to hate, launched a new ad campaign this fall. The creator of the TV commercials for the campaign, featuring hip and with-it young people, says the ads reinforce the idea that Yellow Tail is for “people who are unpretentious and fun-loving.”

What struck the Wine Curmudgeon about the Yellow Tail ad is not its efficacy, but how wine advertising has stuck to the same theme for decades and decades and decades — that the best way to convince Americans to drink wine is to show hip and with-it young people drinking wine.

Don’t believe me? Then check out this Mateus Rose commercial from 1971 (courtesy of robatsea at YouTube). Save for the white pants and the 20th century production values, there isn’t much difference in approach. Whether that’s good or bad is for you to decide.

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