A subscriber to The Week That Was, who wishes to remain anonymous, puts forward the case for Cabernet Sauvignon being the key to Australia’s premium wine exports.

 

For years I’ve heard commentary about Australian Cabernet’s underperformance.

While it’s true that domestically it hasn’t been all smooth sailing, that’s only part of the story.

Cabernet was pivotal in Australia’s early export success.

The strategy of introducing a familiar variety while telling its Australian story was – and still is – an effective way to break into new markets.

This opened the door for other varieties and blends to follow.

Fast forward to today, and we’re often leading with Shiraz.

But I can’t help but wonder if that’s holding us back.

Shiraz is the world’s sixth-most popular variety.

For comparison, in 2018, Shiraz sales in the USA were USD$156 million, while Cabernet Sauvignon reached a massive USD$2.6 billion.

Entering a new market with a little known variety such as Shiraz from an unfamiliar wine-producing country – especially one known mainly for commercial wine production – makes market entry much harder.

So why aren’t we talking more about premium Australian Cabernet Sauvignon?

It’s likely because it hasn’t been performing well over the last 15 years, right?

I’d like to share data comparing Shiraz and Cabernet performance using Wine Australia’s export data (dating back to 2010).

The data compares 2010 and 2024-year ending December and compares:

• Volume and Value,

• Volume and Value excluding North East Asia (NEA, mainly Hong Kong and China),

• Volume and Value above $10 FOB, and

• Volume and Value above $10 FOB excluding North East Asia (NEA).

Key takeaways

Value since 2010

• Cabernet has increased in value by 158 percent, compared to Shiraz’s 14.5 percent.

• Cabernet above $10 FOB is up 1,196 percent, while Shiraz is up 199 percent.

• Cabernet excluding NEA is up 4.2 percent, while Shiraz is down 35.9 percent.

• Cabernet above $10 FOB excluding NEA is up 254 percent, while Shiraz is up 32.4 percent.

Volume since 2010

• Cabernet has increased 23.3 percent, whereas Shiraz is down 6.9 percent.

• Cabernet above $10 FOB is 263 percent, while Shiraz is up 105.6 percent.

• Cabernet Excluding NEA is flat – 0 percent, while Shiraz is down 30.3 percent.

In 2010, Cabernet Sauvignon was valued at $3.43 per litre versus Shiraz at $3.72.

In 2024, Cabernet Sauvignon has risen to $7.25 per litre, while Shiraz is at $4.59.

So it is not all that bad for Cabernet.

I get that the figures may be influenced by a major successful wine brand, but if they’re seeing success with Cabernet, maybe we should give it a shot, too.

Imagine the potential if we focused more on promoting Cabernet Sauvignon.

Perhaps it could even help to move some Shiraz in a blend – sound familiar, Max Schubert?

Long live the King (Cabernet).

• Article first appeared in The Week That Was newsletter.