Australian Wine Exports to the US - the demise and rise of NZ

I’ve been buying the Luke Lambert Syrah’s by the half case recently. Absolutely delicious. And the By Farr Syrah I was gifted by a client recently was also delicious. Not at all the stereotypical Aussie Shirazes.

I suppose there isn’t really much of an incentive for Americans to try Australian wines. They’ve gone through a lot of the old vine South Australian gear before - this was the stuff that on face value has the biggest story/marketing edge to it. What’s the incentive for Americans to try classically-styled wines from Margaret River, Yarra Valley etc? If Americans want something different from USA, they can easily go old world, which is easily understood and there is greater expertise among both American writers and amateur enthusiasts.

It is similar in reverse though - Australians have zero interest in American wines. The varieties that America grows, are also found here - and at much better prices. American wines (at least the stuff that arrives here) are laughably priced. If Australians don’t want to drink local, they will look to the old world.

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Americans in general, and American wine consumers specifically, are quite open-minded about buying interesting and varied things from around the world. There isn’t any particular need for American consumers to buy wine from Argentina, Chile, New Zealand, Australia, South Africa etc., but they happily do it when quality, interest and price are favorable.

It’s rather the opposite of the Old World, where not only do most drinkers buy domestically, but within their region of their country – e.g. in Piedmont, most of the wine is Piemontese, in Tuscany, most of it is Tuscan, in Sicily, most of it is Sicilian.

I think if Australia exports good and interesting wines at attractive prices, Americans will check them out and buy them. There isn’t any inherent reluctance, other than some lingering negative opinions from the early 2000s era of overdone Shiraz.

Wine Exchange (near where I live) got 10 cases or so of Mount Mary Quintet and sold them for $90 a couple of months ago, and they sold out very quickly. I bought one, had meant to try it and come back for more, but then it sold out and so I’m going to hang onto my bottle to let it age.

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The exchange rate plays a big role. The low point for the AUD in the last 30 years was 2001 when it hit 0.50 against the USD. It rose to 0.75 by 2004, and then to 0.97 in 2008 before a brief hiccup due to the Asia currency crisis, then rose again to over 1.00 for several years. It’s been dropping in fits and starts since 2013 and is about 0.68 now. That has been reflected in wine prices, however imperfectly. It was one thing to buy high-quality Aussie shiraz for $30-40; it’s another thing to pay $60-80 for it. I bought a bunch of Two Hands wines back in the day when they cost around $35. When they hit $50 a few years later, it was a tougher buy. When they hit $65, it was a no-go. I didn’t check this for GBP or Euro, but I’m guessing a similar pattern.

With the exchange rate being more favorable and the trade difficulties with China, I’ve been seeing more Australian wines recently in my local wine stores and more variety (I bought a Rieslingfreak a couple of weeks ago). Not many, but more than the 4-6 I might have typically seen.

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Whilst the former is unashamedly marketed on bigger is better (the dead arm disease helping concentrate flavours in the fruit the remaining branches), it’s a wine with a track record and is structured to age. It’s not an approachable fruit bomb, and indeed I recall that vintage being quite tough in its youth.

I’ve never tasted the Rolf Binder, but always assumed it was part of the bigger is better South Australian push.

Frankland Estate very much the odd one out of the 4 mentioned, and should present a very different profile to the others, as one from a very different region and wine style. That they’re best known for riesling should give a clue to that. I’ve no idea where that vintage is in development, but it should give you an easy window into Australia outside of the South Australian big reds. FWIW I checked in an old Jeremy Oliver ‘annual’ and whilst he wasn’t a fan of the label, seemed to like the 1998 (which he called elegant, tight knit and earthy). He had the drinking window ending in 2010, but I wouldn’t be overly worried by that, as in general I found him conservative in drinking window, and that’s often also true when he (or indeed anyone else) doesn’t particularly care for the style.

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and for as long as I’ve been into wine, that same challenge has held American wines back in other markets such as the UK, Europe, Australasia etc. The expensive wines were eye-wateringly so, resulting in a very niche foothold. The cheap wines had a better foothold (Gallo and the likes), but no great loyalty. Of the quality end of the scale, the likes of Ridge, Au Bon Climat and a handful of others invariably used to carry the flag in wine merchants.

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This is a really good point and one that I think will play out over the next few years. While the older wine buying public will remember the big Barossa Shiraz’s, I think good, dedicated importers will bring in wines that will be quite different from what was brought in 20 years ago and there will be a ton of new consumers that aren’t as familiar with what was and will only care about what’s in front of them now.

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If you can remember them, you never drank them :wink:

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FWIW, recently deNegoce took advantage of the trade dispute with China and has procured Australian wines (red and white). For what is supposedly in the bottle, it might be worth the gamble. I have a shipment coming soon and would be happy to report back.

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I drank them. 2002 Torbreck Factor and Runrig. 03 Les Amis was outstanding OV Grenache. The best shiraz was as good as Syrah from anywhere, but they were no bargain at $150-$200. Show some outstanding shiraz for $30-$40 and I’m a buyer.

I agree with Thomas’s comment up-thread that that peak for Aussie imports into the US in 2007 would have coincided with the tidal wave of the ‘critter labels’ which while cheap, had the necessary volume to reach that figure. In tandem, the beginning of a move away from the Ringlands, Glaetzers, Mollydookers etc that had been Parker favourites. Those cult Australian wines may have generated critical acclaim but they would never have been shipped in large volume.

As a proud Kiwi I am often surprised by the success of our Sav Blanc in the US (and Australia) but I put part of that down to climate with SB working so well for its refreshment factor and zestiness in the hotter climes.

I thought that Australia’s trade impasse with China might see them dumping wine here at low prices, but that certainly has not been the case: if anything there is ever more upward pressure on prices!

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I think there was a dump of older wines about a year ago. I was able to find a bunch of older semillon for a while, but now its back to being pretty hard to find other than new release of certain Brokenwood and Tyrrells.

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My late father’s cellar still has a fair number of older bottles of Dead Arm and Laughing Magpie. Going to check a few of those as part of my recurring Tales from the Crypt series next week.

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