While Australia has a small population and domestic market, it is well positioned to export wine, given their adaptive, large-scale producers and lure for foreign investment. Prior to 1970 they held less than 1% of the global wine market but in 2004, holding 5% of the global production they not only doubled their 2000 export volume, but also became the fourth largest exporter.

Reasons for success:

- Promoted exports by preventing high taxes.
- The industry was highly concentrated, with over 75% of production occurring within four major companies
- Focus on brand building and marketing – companies like Yellow Tail paid close attention to developing a household name through aggressive advertising that involved colorful labels and imaginative names in addition to competitive prices.

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