Yellow Tail: The Aussie Champion in the US Wine Market
Case Study Reference No. MES0051C

This case was written by Chandrasekhar, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. This case was compiled from published sources. © 2005, IBSCDC No part of this publication may be copied, reproduced or distributed, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or medium – electronic, mechanical, photocopying, recording, or otherwise – without the permission of IBSCDC.

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[Yellow Tail]: The Aussie champion in the US Wine Market
“[yellow tail] is a ‘value innovation’ product which continues to lead the way in opening new consumers to a taste profile of wine which is extremely good value. The brand has displayed a unique loyalty with its consumers and our research shows they are prepared to recommend it as ‘their discovery’ and take pride in that ownership. We researched the market intensively to determine the right price points, the right packaging, the right wine style and we certainly had the right marketing approach to enter the lucrative US market….” - John Casella1 “Results like this just don’t happen; it takes a team of professionals and the backing of distributors to come together to achieve these wonderful results.” - John Casella2 The New South Wales3 based Casella Wines captured the US wine market with its “Yellow Tail” brand of wines. In October 2005, Yellow Tail sold over l million cases in the US and created an industry history as the first varietal4 brand to have achieved that mark. In the wine industry, while the competition was for long on making sophisticated