Australia's winemakers are plotting an assault on New Zealand's lucrative UK export market with a new wine style they describe as a "sauvignon blanc killer".
Unable to match the fruity and grassy flavours of Marlborough sauvignon blanc, Australian growers are positioning "semillon blanc" for launch in the UK's biggest supermarket chain, Tesco, later this month.
Australia's winemakers, like their New Zealand peers, are struggling with production oversupply, but the Australians are also fighting an uphill battle to see off new world challengers and protect their traditionally dominant share in markets including Britain and the US.
Dan Jago, chief wine buyer for Tesco, Britain's largest supermarket chain and the biggest single buyer of Australian wine, says British shoppers are increasingly looking for lower alcohol, more refreshing wines, such as South African whites or sauvignon blancs from New Zealand.
"There's no doubt that the popularity of standard Australian chardonnay, shiraz and cabernets is down," Jago said.
"Ten years ago Australia had the new world market locked up tight - now consumers are saying, if it's Australian, South African, Chilean or Californian, it doesn't make a difference."
While the volume of wine exported by Australia has climbed in each of the past two years after dipping in 2007-08, the value of what is being sold has fallen in all three years as increased bulk shipments, a strong Australian dollar and a dent in consumer spending after the global financial crisis have combined to push down prices.
But potentially more damaging has been the industry's sluggish response to changing consumer palates in Europe and Britain. Now a strategy to take on our sauvignon blancs is emerging. Paul Schaafsma, European and UK director at New South Wales-based McGuigan Wines, says
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