Australia's leading sparkling wine house, Yellowglen, will release new packaging for its entry-price and premium wines before Christmas, and launch a fresh brand campaign in the new year.
The moves are part of an attempt to encourage drinkers back to the label in the face of a proliferation of local sparkling wines and competition from champagne.
Michelle Terry, the managing director of Lindeman's, said on Tuesday that champagne – which has become steadily cheaper due to the strength of the Australian dollar and an oversupply in economically stagnant Europe – remained the biggest threat to the premium end of the sparkling wine market where labels typically sell for more than $20 a bottle.
She said Yellowglen, owned by Treasury Wine Estates, remained dominant in the $8-$10 range but it had suffered at higher price points, typically $10 to $15 – a problem the new strategy was designed to address.
‘‘We had seen some softening in our position in the market in the teens, so the $10-$15 mark, so its very important for us that given that is a growing market for us to re-establish our credibility in that part of the market as well as in a premium offering,’’ she said.
"It's very important . . . to re-establish our credibility in that part of the market as well as in a premium offering," she said.
Sparkling wine is going through a flat sales period at the moment, and is down significantly when compared to the booming market for Champagne in Australia.
Recent statistics from Nielsen show sparkling wine (including Champagne) growth in value terms is only up 0.1 per cent for the year to June and down 3.1 per cent in volume terms. However Champagne growth is up 10.5 per cent in value terms and 14.1 per cent by volume for the period.
The sparkling wine market remains dominant when it comes to size. Champagne sales generate around $100 million a year in Australia and non-Champagne is worth $450 million.
Yellowglen has a 25 per cent share of the Australian sparkling wine market.
As part of a new premium range, Yellowglen has launched a new label, XV, which will have a limited supply and retail between $49 and $59 a bottle.
The Yellowglen XV range has been created to stack up against the flavour and style of well-known Champagne houses from France.
Ms Terry said a review of Yellowglen had shown the brand was strong and generated good consumer loyalty.
"It's Australia's No. 1 sparkling wine and that's a pleasing base to move from," she said.
But competition at the cheaper end was taking its toll.
Imports, were a threat in the higher price range.
"Sometimes we see consumers trading up [to champagne] and that's one of the reasons we are firmly trying to establish Yellowglen as the premier house of sparkling from Australia," Ms Terry said.
In North America and Europe, oversupply has forced the close-knit champagne houses to find new homes for excess bottles.
But this supply and demand imbalance could soon switch as the most recent projections for the harvest in France showed yields were likely to be down as much as 40 per cent in some regions.