Oz Clarke discovered Australian wines for himself while he was touring with the Royal Shakespeare Company, performing in Hedda Gabler with Glenda Jackson at the end of the 1970s.  

In the forward to his Australian Wine Companion (2004) Clarke writes: “I hit the streets of Sydney and Melbourne and I’d buy the cheapest wine in the shop. It would be bursting with fruit, with ripeness, with a cheery ‘grab-me-and-drink-me’ personality that was a revelation. And the way wine was drunk was a revelation. You didn’t have to get your best crystal and order a three-course dinner to drink wine at any level.”

Referring to that period, he wrote: “Northern Europe had no popular wine-drinking culture because it had almost no enjoyable popular wine. More than any other New World country, Australia provided this,” said Clarke.

These old quotes sum up succinctly the essence of Australia’s popularity among what became mainstream wine drinkers. Prior to the major multiples selling wine, it was essentially the tipple of the upper and middle classes, who were basically drinking French, Italian, Spanish and a few German wines.

But things started to go wrong during the late 1980s and 90s, when Australian producers were chasing volume and, certainly in the UK, the multiple retailers took advantage of surplus and disarray among the producers to discount heavily and use Australian wine to attract consumers into their stores. Arguably the writing was on the wall. 

There might also have been a element of ‘familiarity breeds contempt’ as the likes of Chile, South Africa, New Zealand and Argentina started to get their acts – or wines – together. The increasing strength of the Australian dollar has hardly helped in pricing entry-level wines. 

Jean-Christophe Coutures, chairman and CEO at Pernod Ricard Winemakers, which makes Jacob’s Creek, says: “The challenge has been the perception of Australian wine. We see this as linked to the unsustainable supply situation as bulk commercial wine has been pushed into the domestic and export markets, often at discounted rates. 

“However, we are already seeing perceptions change and we are confident this will continue to improve as consumers are reacquainted with the quality, craftsmanship and diversity of Australian wine. Our new Jacob’s Creek Made By campaign is an example of this. It highlights the people, places and passions that go into creating every bottle of Jacob’s Creek.” 

Accolade Wines’ general manager UK, Ireland & global partners Paul Schaafsma is defiant and unequivocal. He tells Drinks International: “The biggest message I would like to say is: Australia isn’t broke(n).”  

Jane Robertson, category director of Accolade’s insight team, backs that up by stating that Australia still commands around 21% of the all-important UK market and it is actually growing.

Treasury Wine Estates’ general manager UK, Ireland & western Europe, Dan Townsend is even more positive. He says: “Australia is riding the crest of a wave from a quality perspective at the moment and this is having a significant impact. Australian wine stands for more than just £5 per bottle. There are increasingly successful sales for wines selling at £8 and over as well as at £10 and over. 

“And, at a fine wine level, Penfolds continues to enjoy remarkable success, transcending Australian wine and establishing itself as one of the world’s great wineries,” claims Townsend.

Around 60% of Australian wine is exported. The top five export markets are: UK (245m litres, +1%), US (164m, -8%), Canada (60m, +20%) and China (37m, -5% – Hong Kong was up 9% to 7.5m litres). 

Townsend says one in five bottles of wine sold in the off-trade in the UK are from Australia – so the trade should never be under any illusions as to how important the Australian wine industry is in the UK. In the Netherlands, Lindeman’s is the number one wine brand and over Christmas the Lindeman’s Bins range sold more than 2m bottles in Albert Heijn – at a price point above the category average. 

Coutures adds: “The greatest challenges we currently face as an industry are fuelled by the continued unsustainable grape supply situation, a domestic taxation system which penalises premium wines, and adverse foreign exchange rates, which we note are currently adjusting. 

“While the planted area in Australia has declined in recent years, the current production levels exceed sustainable demand, and further structural reform/consolidation is required. We believe the current wine tax system (including certain producer rebates) is inhibiting the required adjustment, and reform in this area would allow market forces to operate without distortion – and would also provide a better platform for the production and promotion of premium wines.” 

Accolade Wines’ Schaafsma maintains Australia should not try to replicate Europe – it must stay focused. Its most popular varieties are Shiraz, Cabernet and Chardonnay. For him, Asia is a key market, along with the UK and US. He believes strongly that Australian wines have been “dumbed down” in recent years and adversely affected by the “anything but Chardonnay” reaction from some writers.

Accolade’s Robertson claims that the anti-Chardonnay movement has not been bourne out by the figures. While many observers perceive the rise in popularity of Sauvignon Blanc and Pinot Grigio, the actual stats show that Chardonnay sales have held up.

Plantings

Julian Dyer, general manager UK & Europe, Australian Vintage, has a different view. He says: “The amount of planting occurring in Australia is very small but there is some activity with some new or lesser-known varieties being planted by wine producers who understand that innovation is important for the long-term viability of, and indeed excitement in, the Australian wine industry. 

“Varieties such as Fiano, Tempranillo, Montepulciano, Grüner Veltliner, Arneis and Prosecco are all being planted in Australia in a range of regions. Some of the early work looks promising.” 

You get a different perspective from one of the smaller producers.

Mark Hely, director of export for the McWilliam’s Wines Group (which comprises McWilliam’s, Mount Pleasant, Evans & Tate and Brand’s Laira) also perceives interest in other grape varieties: “The key trend in Australia is the move to more medium-bodied wines in line with the rest of the world. While Shiraz, Cabernet Sauvignon, Chardonnay and Sauvignon Blanc are still the big four we are seeing growth in Pinot Noir, Pinot Gris and Pinot Grigio. 

“As Australian consumers explore the newer varieties in the market they are not increasing their consumption but are moving up in price point. This had led to value growth off a stable volume. 

“Interestingly, where Shiraz and Cabernet Sauvignon were equal in consumption in the past, Shiraz is now pulling away as the popularity of medium-bodied wines grow. The growth in medium-bodied wines from Australia is also opening up new export opportunities as the traditional full-bodied wines are being joined on-shelf by the new medium-body offerings.

Geoff Krieger, general manager of Hunter Valley producer Brokenwood Wines, says: “While the big companies continue to play the commodity wine game, the other 3,000 or so wine companies are working hard to re-establish the industry’s position of producing high quality, regionally specific, interesting wines.

As to what trends he perceives, Krieger says: “The interesting trends are for established regions such as the Hunter Valley to be producing more wines from single-vineyard sites that truly express the qualities of the site and the region – think ultra-fine, long-living Semillons and medium-bodied, savoury Shiraz. Newer, cooler regions are working with Italian and Spanish varieties to good effect.”

Lower-alcohol

Australia gained a reputation – some may say notoriety – for big blockbuster, fruitbomb wines such as Barossa Valley Shiraz. But there has been a move to lower-alcohol wines and McGuigan has been at the forefront of that innovation.

Dyer reacts: “Australia made its name with innovation and technology, and we at Australian Vintage have in particular been at the forefront of developing new wine styles with slightly lower or lower alcohol levels.

“This is a complex area that stirs up emotions in traditional segments of the trade. The first thing to say is that most wine tastes best when grapes are at maturity, so very naturally wine is best between 10% and 15%, depending on region and vintage etc.

“With the consumer trend towards refreshment there is no doubt, however, that average alcohol levels are coming down. Our McGuigan Semillon tastes perfect, yet is under 11%.”

He continues: “Then there is the true alcohol-reduced category, which is an area we lead in, and we have invested in the latest spinning cone technology. The market for low-alcohol wines will always remain relatively small, but it is significant, and the importance is for us to recognise it is a different category appealing to different consumers, and to ensure that the taste and quality proposition delivers,” says Dyer.

Tony Parkinson, group principal and global sales director of McLaren Vale’s Penny’s Hill, says: “Australia remains a quality producer. However, driven by our volume producers, the perception has been skewed towards ‘cheap’, which has affected our ability to crack restaurant wine lists globally and thus Brand Australia has been watered down.

“Overall there has been minimal new planting in recent years but replanting will rise as vines need replanting and yields need to return to sustainable levels.  Many producers are trending towards lighter, lower-alcohol styles of European origin backed by boutique sized plantings of Nebbiolo, Sangiovese, et al. 

“Australians are inclining towards lower-alcohol, fresh and food-friendly wines as our culinary impetus gains further momentum. The high A$ and chain store dominance has given rise to imports from Europe and South America in particular, which has influenced what Australians now drink. New Zealand is retracting its overt Sauvignon Blanc penetration of Australia in favour of the US. That will help lift our white wines back to better standing.”

Countries apart

Vasse Felix international marketing manager Lloyd Constantine says: “Leading with our country’s wine regions remains the most significant thing Australian producers can do internationally. Many of our regions are the equivalent of being countries apart in European terms. 

“Over the past couple of years at Vasse Felix we have refined our wine collection to focus only on the varieties that Margaret River grows best Cabernet Sauvignon and Chardonnay, along with Sauvignon Blanc and Semillon blends.”

Coutures says: “I see the diversity of Australian wine as one of its biggest assets – our industry has the breadth and depth to respond to differing consumer needs. In mature markets we see confident wine consumers looking for new experiences, and the Australian wine industry is well-placed to meet these needs. 

“In emerging markets we see a growing middle class in cultures with a strong focus on the meal occasion – wine is a perfect companion for food and the diversity of Australian wines means that we have a wine for every cuisine. 

“The Restaurant Australia campaign launched in 2014 by Tourism Australia and supported by the wine industry is a great example of how food, wine and tourism can be combined to showcase the best that Australia can offer.”

Brokennwood’s Krieger concludes: “The future is very bright for Australian wine. The task is to continue to tell our story and educate consumers globally that Australian wines are multi-dimensional, regionally specific and as diverse as the wines of Europe. After all, our island continent is roughly the same size as Europe.

The final word goes to Oz Clarke  –who, by the way is Welsh and his ‘real’ name is Owen. He was dubbed Oz because of his love of cricket and the Australian cricket team. 

He says: “I found in Australia my soulmate. Good wine, enjoyable, approachable wine available to all; affordable by all. Sometimes seeking to provide the greatest pleasure for the greatest number – and achieving it. Sometimes saying: ‘We’re not frightened, we can equal those old-timers from Europe.’ But more often saying: ‘We’re Australian, we don’t copy anyone. Take us for what we are. And enjoy it.’”