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Has Yellow Tail hurt Australia's reputation?

SteveHeimoff.com, Steve Heimoff
10/17/2013

I’ve never had Yellow Tail, I’ve never slammed it, but nonetheless I was intrigued by this article about how John Casella, whose Casella Wines produces Yellow Tail, “slammed critics who blame his winery’s Yellow Tail label for undermining premium wine sales abroad.”

Not identified in the article was just who those critics are, but perhaps this four-year old article from Slate is indicative of them. “[W]hat was good for Yellow Tail wasn’t so great for the Australian wines as a whole,” it argues, adding that “consumers came to equate Australia with wines that were flavorful but also cheap and frivolous.”

John Casella - Photo Source: www.yellowtailwine.com

Mr. Casella takes this theory head-on and counters with a strong argument: “Is Barefoot…destroying the image of American wine?” he asks, logically, concerning the top-selling wine in the U.S. (Yellow Tail is number two.) The answer, obviously, is no, Barefoot is not harming anything. Mr. Casella hits the nail squarely on the head when he asserts that Yellow Tail is “supplying one end of the market that has one type of consumer.” That type of consumer clearly is the value-oriented person who wants a sound varietal wine, at a fair price, which is exactly what Yellow Tail offers.

I’ve never understood this argument that low-priced wine drags down the reputation of its region. That’s just dumb. We have something called market segmentation in wine, as in clothing, cars and just about every other consumer good and service; that’s the way economies work, particularly in complex societies. Nobody ever suggested that a Chevy Aveo was dragging down Cadillac’s reputation, simply because both cars are manufactured by General Motors. Similarly, nobody ever said that Two-Buck Chuck was harming the reputation of California wine. (And by the way, oceans of plonk certainly didn’t interfere with France’s reputation for fine wine.)

I’ve long been a proponent of cheap wine. It allows people of modest means to drink wine (which I believe is in and of itself a good thing, since wine has a civilizing effect on humankind). Throughout all of history, people have had a need for inexpensive wine, and producers like Yellow Tail, Barefoot and Two-Buck Chuck fulfill that market niche with professionalism and aplomb.

Now, it may well be that some Americans viewed Australia through the lens of Yellow Tail (or other low-priced brands that flooded the U.S.). But that’s not Yellow Tail’s fault: it’s the fault of wine educators, including writers, somms and merchants. It’s a big, complicated world out there; I think consumers are interested in learning more about imported wines, if only someone would give them the chance.

Incidentally, although I’ve never reviewed Yellow Tail, my colleague at Wine EnthusiastJoe Czerwinski, routinely does, and he’s given it lots of “Best Buys.” I have a feeling I would, too, if I covered the wines of Australia. So I give credit to Yellow Tail.

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