2003 Australian Quarantine Inspection Service (AQIS

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					          2003 Australian Quarantine Inspection Service (AQIS)
                             Export Award
                             Casella Estate

Casella Estate shot to the fore front of the export area in mid 2000 with the hugely
successful brand [yellow tail]®. Based in the Riverina Casella Estate has
concentrated predominantly on the export market, and is now a key player in
Continental Europe, Asia, the UK, USA and more recently Canada and Italy.
The [yellow tail]® brand has become the most successful launch of an Australian
wine brand in the history of the Australian wine industry.
State of the art vineyards and wine production together with a solid infrastructure
has allowed Casella Estate to maintain key markets and develop growing

Currently exports account for 97% of total production and have grown a massive
270% in the last financial year. Export sales have driven the company’s growth
and for the fourth year running exports have exceeded domestic sales.

Casella’s wine exports grew to phenomenal records in the 2002/03 financial year
with volume growing by 244% and sales seeing growth of 270% up from last
financial year.
Exports to the USA were the major driver of the record growth in 2003. While the
UK is globally Australia’s largest overseas market, Casella’s has focused it’s
energies on the USA, Canada and Continental Europe in an effort to avoid the
discounting experienced in the UK national supermarkets.

In terms of volume, export sales have exceeded 7 million cases since 1998, and
since June 2001 have seen considerable growth with the introduction of the
export specific brand [yellow tail]®, sales are moving at 5 million cases MAT for
total company exports.
Casella Estate is now listed as the fifth largest exporter of branded wine by
volume and the sixth by value, in the three previous years Casella Estate has not
been ranked.
Within the overall import category, [yellow tail]® is now flexing its muscle as the
No. 1 wine import in the USA, controlling 5 of the top 20 imported SKUs.
[yellow tail]® continues to dominate the Australian category, with 30.5% market
share (almost as much as Lindemans and Rosemount combined .
Looking to the wider world of wine in the USA (imports and domestic) [yellow
tail]® is currently the 15th largest wine brand in the USA by volume, up from No. 17
just last month (52 wks ending 8/2/03). [yellow tail]® Shiraz 750ml is now the No. 1
selling 750ml red wine in the country, outselling Blackstone Merlot from California.

Casella Estate has been able to achieve this growth through carefully executed
strategy plans, market specific marketing plans and a close working relationship
with each of the appointed agents. Casella Estate has a full portfolio of export
brands developed to capture each market within they are sold. The
development of private brands in the USA and UK has given rise to more market
opportunity through the different channels such as on and off premise.

Casella Estate has not seen a downturn in sales as a result of the current world
issues, in fact current sales show quiet the opposite. Sales in the established
markets are stable and new markets are adopting [yellow tail]®
Expected export sales for the coming financial year are expected to exceed
A$200 million dollars, a far cry from the total company sales of A$21 million in the
2000 financial year.

To maintain direction and ensure no markets are jeopardised specific brand
guidelines and marketing concepts have been defined to ensure the branding of
our key export brand [yellow tail]® has remained a world wide wine brand. We
have been able to satisfy each of the destinations specifications without
detracting from the brand, for example the wine and the packing found in the
UK will be the same as you see in South Africa or the USA. The recommended
retail price has remained stable in all markets.

A new A$8 million production line was commissioned in 2003 and is now fully
operation at 20,000 bottles per hour. It is one of the few high speed lines in
operation in Australia. To keep up with export demand the new line runs 24 hours
a day five days a week. New loading facilities have also been put in place, last
year Casella Estate loaded 2,400 dry containers and so far this calender year has
loaded 3,600.

In the past twelve months we have experienced notable growth in the UK,
Canada and Continental Europe, other key markets such as Japan, Thailand and
Korea will come into play later this year. It has been a company imposed mission
to solidify existing markets before new markets are entered.

Casella Estate’s recent success in C   anada and Italy has secured it’s ability to
secure new destinations and gain significant accolades. In less than a year
[yellow tail]® Shiraz has now become the best selling Australian red wine in British
Columbia, a position held by Wolf Blass Yellow Label since 1995. Italy has seen
similar success, in less than six months of trading Casella Estate can claim 7% of
Australian exports destined for Italy.

                  [ the tail tells a sto ry ]