Australian Wine 'Yellow Tail' Reaches 10 Million Bottles Sold
Plans to Strengthen Marketing in Second Half to Sustain Growth
Last year, Lotte Chilsung Beverage, which achieved nearly 100 billion KRW in sales from its wine business, plans to continue the growth of its wine sector by leveraging steady sellers such as 'Yellow Tail,' which has sold over 10 million bottles domestically.
On the 17th, Lotte Chilsung Beverage held a press conference at Lotte Hotel in Sogong-dong, Jung-gu, Seoul, announcing that the cumulative sales of the Australian wine brand 'Yellow Tail,' first introduced to Korea in May 2005, exceeded 10 million bottles by the end of last year.
Yellow Tail is a brand launched in 2001 by Australia's Casella Winery, promoting "wine that anyone can easily enjoy." Currently, based on large-scale production facilities capable of producing 36,000 bottles per hour, it is exported to over 70 countries worldwide, including Korea. Approximately 84% of its production volume is exported, accounting for 17% of Australia's total wine exports.
Domestically, since Lotte Chilsung began importing Yellow Tail in 2005, it has increased its popular recognition mainly through sales in large supermarkets and convenience stores. In particular, it has recorded an average annual sales growth rate of 12.1% over the past five years, growing into a representative Australian wine brand in the Korean market. Alongside Chilean wine brands '1865' and 'Montes Alpha,' it ranks among the top three brands in terms of sales revenue, and within Lotte Chilsung's wine division, it is the highest-grossing brand, accounting for nearly 10% of total sales.
John Casella, CEO of Casella Family Brands, is giving a greeting at the Yellow Tail press conference held on the 17th at Lotte Hotel in Jung-gu, Seoul.
Lotte Chilsung recorded nearly 100 billion KRW in sales last year, driven by strong sales of major brands such as Yellow Tail, as well as new brands like Chile's '1887' and the U.S.'s 'Bread and Butter.' The wine division of Lotte Chilsung Beverage posted sales of 99.628 billion KRW last year, marking a 19.8% increase compared to the previous year. While the wine division's sales were around 58.595 billion KRW in 2019, they rose to 61.894 billion KRW the following year and surged by 34.4% to 83.141 billion KRW in 2021, achieving over 70% growth in three years up to last year.
However, this year’s start has been somewhat sluggish. Lotte Chilsung's wine business sales in the first quarter amounted to 23.631 billion KRW, down 15.5% from 27.964 billion KRW in the same period last year. This decline is attributed to the sharp market growth last year due to the COVID-19 special demand, combined with the recent economic downturn and overall weak consumption, which also led to reduced wine consumption, still classified as a luxury good in the domestic market.
Lotte Chilsung plans to overcome the sluggish first half by intensifying marketing efforts from the second half, led by Yellow Tail, to continue recent growth trends. Seo Ji-hoon, head of Lotte Chilsung's alcoholic wine division, said, "Due to last year's high growth, sales this year decreased by about 15% compared to the previous year," but added, "We expect the market to rebound in the second half and plan to strengthen marketing activities accordingly."
John Casella, owner of Yellow Tail and representative of the Casella Family Brands, also predicted that the domestic wine market will continue to grow despite recent fluctuations. Casella stated, "The recent adjustment following high growth during the COVID-19 period is natural. In Korea, the number of consumers who have experienced wine during COVID-19 has significantly increased, and infrastructure such as premium wine stores has expanded, so we expect growth to continue over the next few years."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
