The competition for shelf and table space may be more fierce than its ever been but small to medium sized wine exporters like Logan Wines, Orange, New South Wales, are reveling in the challenge.

Exporting 40 percent of an annual crush of 320 tonnes the company’s strategy of targeting specialty retailers, mid-range restaurants and ‘gastro-pubs’ with a three-tiered product offering is paying off. Last year Logan sold 28,600 cases, up from 14,000 the year before and 8,000 the year before that.

Wine maker Peter Logan said teething problems with distribution in the Asian marketplace several year ago saw the firm divert its energies to Europe and the US.

“Sweden, Germany, the US, Canada and Mexico are growing markets for us and they understand our products. When we say we’re a cool climate, high altitude winery its easy to sell whereas that message can get a little lost in markets such as Hong Kong.

“However, we are exporting to Singapore and about to go back into Hong Kong (into City Super outlets). I see a lot of potential in the young Asian professional market, rather than among older Asian consumers, as they choose wine by prestige value. We need to market to these professionals who have money to spend, eat out often and (hopefully) are not yet prejudice against Australian wine in favour of French. If wine can become part of their dining out experience — particularly when dining out casually — then I believe the market could become quite large.

“It’s also a growing rather than dying market. If you can reach them now then, hopefully, you will stay with them as they get older and your brand will become established as the market matures and this will perpetuate your brand name.” But Mr Logan said it was fair to say Asia had been a difficult market for the company. “I think you need a big marketing budget and a lot of patience to get your message across, The EU market in contrast is a lot more advanced and as a result easier to sell to. But the potential of the Asian market is substantial and should not be ignored.”

“At present, for firms our size, it’s much easier to sell wines from a small company and a relatively unknown wine region (such as Orange) to a more educated market.” In the US Logan’s customers are concentrated in pockets around Chicago and New York. Again, problems with distribution had held back growth in the US but the company had resolved the problem by consolidating distribution with its New York agent.

Mr Logan believes regionality is gaining ground as a strong selling point in high value markets in Europe and the US. “Recently, I was on a speaking tour in the US with the Australian Wine Bureau (AWB) and it was apparent that people not only want to know more about Australia but about regional variation.

“This message is not necessarily the one you’ll hear from the big wine companies who have a vested interest in pushing ‘brand Australia’ but I think its an important trend that smaller producers should be aware of particularly as it become harder to compete for shelf space.”

Mr Logan said the winery’s product offering included an entry-level brand, Apple Tree Flat, which retailed for $10, a mid-range brand, Weemala, which retailed for $15, and a premium range, Logan, that retailed for $20+.

“As a smaller operator its takes time to develop a range and markets but I feel that the product range and reach we now have is working well and you’re seeing that reflected in our growth in the last couple of years.”