Historic A-list Barossa winery Château Tanunda, poised to celebrate its 130th anniversary this year, has initiated a total revamp of U.S. operations.
Changes include a leaner portfolio, tighter focus on higher end wines, new packaging, and two new wine debuts. To bring these wines to market, Château Tanunda disbanded its U.S. salesforce in late 2019 to start work instead with Sonoma-based Vintage Point, who will now provide the salesforce and marketing muscle.
Of the new Vintage Point partnership, Michelle Geber, Managing Director at Château Tanunda, said: “We felt we needed the expertise of a U.S. company, rather than trying to manage sales and the sales team from Australia. Vintage Point has an outstanding track record helping to build numerous high-profile brands in the U.S, such as Layer Cake, Josh and Mionetto.”
Château Tanunda, in line with the Australian category as a whole, has seen a decline in sales. U.S. sales of Australian wines, measured by volume, were modestly down 2% in 2019, though Australia remains the second largest source of imported wine in the U.S. behind Italy. Hardest hit were large-volume brands.
The over-$10 per bottle category, however, experienced an increase of 14.6%, thanks to a renewal of U.S. interest in high-end Australian regional producers.
Said Vintage Point President David Biggar: “We are seeing solid double-digit growth trends in Nielsen scan data for the over-$10 Australian category,” adding “We are also very supportive of Wine Australia’s push to support ‘regionality,’ and confident that Château Tanunda’s Grand Barossa tier, line-priced at $16, can compete favorably with many higher priced wines in $20-$40 category.”
Two lines are now available through Vintage Point: Château Tanunda’s Grand Barossa range of five multi- and single variety estate wines, line-priced at $16, including a new 2019 Eden Valley Chardonnay and 2017 Red Blend, set to make their U.S. debuts this year, plus two Old Vines varietals — a “50-Year Old Vines Cabernet Sauvignon” and “100-Year Old Vines Shiraz.”
Emphasis at Château Tanunda is increasingly on reds. One in five wines sold in the U.S. is a Cabernet Sauvignon. That ratio becomes one in four in the $12 to $30 bracket, with most quality California Cabernets priced at $20 and up. Château Tanunda is confident it can outperform and undercut California competition with its $16 Grand Barossa Cabernet Sauvignon.
The entire Grand Barossa line now comes in a new proprietary bottle embossed with an “Established in 1890” wax stamp, as well as a new label that emphasizes “Grand Barossa.” Accounts can choose between buying the wines bottled under cork or with a screwcap closure. Bottleneckers will also promote the winery’s 130th anniversary.