The maker of Australia's mass-market Yellow Tail wine is in emergency talks with its lender after recording its first loss in more than 20 years, illustrating how the soaring Australian dollar is squeezing local wineries dry.
Yellow Tail—known for its kangaroo logo, attractive pricing, and fruity finish—is but one of the brands produced by Casella Wines. Australia's largest family-owned winery relies on the U.S. for three-quarters of its sales, but the Australian dollar's rise against the U.S. dollar has made its products less competitive against wines from rival regions such as California's Napa Valley and South America.
