Oatley Wines Rolling Out Another Wine Line in United States
Australia’s Oatley Wines has opened a new U.S. subsidiary in Petaluma, California—Robert Oatley Vineyards—to begin distributing its wines in the States. The New South Wales-based winery is importing 25,000 cases of its flagship Robert Oatley brand, which is set for US release at about $20 per 750-ml.
More than three years after selling its major stake to Foster’s and two years after buying back into the wine business, the Oatley family is to relaunch into the US.
Since the first bottle of Wild Oats wine, named after patriarch Bob Oatley’s triple Sydney-Hobart winning super-maxi, rolled off the new bottling line in Mudgee in late 2007, the family has been planning a new US assault.
Initial offerings from Oatley, known for its Chardonnay, include a 2007 Chardonnay (Mudgee), a 2007 Shiraz (Mudgee), a 2008 Sauvignon Blanc (Western Australia), a 2008 Pinot Grigio (South Australia) and a 2008 Rosé of Sangiovese (Mudgee).
In January 2005, the Foster’s Group purchased an 18.8 per cent interest in Southcorp from Southcorp’s largest shareholder, the Oatley family, for $4.17 per share in cash, valuing the stake at $A584 million.
Founder Robert Oatley is a veteran of the Australian export business, having founded Rosemount in the mid-1970s and led the brand to a U.S. volume of roughly 1.5 million cases by 2001, the year it merged with Southcorp Wines in a deal worth A$1.49 billion ($1.3b). In 2006, Oatley began making wines for the domestic Australian market through a new operation, Oatley Wines, with labels including Wild Oats and Montrose in addition to the core brand. That venture has outperformed expectations, prompting Oatley to again begin building an export presence, with the U.S. now in his sights.
The family has spent $10 million on a winemaking facility, state of the art bottling hall and packaging and storage facility around its seven vineyards in the Mudgee region.
"We made all the mistakes the first time around and we will try hard not to make them the second time around," Mr Oatley said yesterday.
Based in California, Robert Oatley Vineyards will import the family’s new wines for the US market, under a new Robert Oatley brand. With 30 years in the business, Bob Oatley has been one of the pioneers of the Australian wine export sector.
"The family are really pleased to be back in America,"said deputy executive chairman Chris Hancock, who is currently in the US.
The new launch bucks the negative recent trend for Aussie wines in the U.S. market. After years of uninterrupted growth, Australian wines’ U.S.-bound exports have stalled, a development owing in no small part to the Australian dollar’s rise against the U.S. dollar. Australian shipments to the U.S. decreased by double-digits in both volume and value in the year to June. Oatley Wines, however, believes opportunities remain for upmarket brands, and will test the theory with its new entries.
"Our history of success in the States is wellknownand we`ve a lot of friends over here in the wine trade who have made us feel most welcome."
"Quality will sell . ."
Sources: “Oatley Wines Rolling Out Wine Line in US,” Dan Marsteller, Wine Spectator; “Premium wine assault, Oatley family aims new label at the US market,” Grant Jones, Daily Telegraph, Australia, September 9, 2008