And it appears to be working, albeit modestly.

For the first time in five years Australian winemakers have increased the average price of wine exports. Premium wines, particularly cabernet sauvignon and shiraz, are becoming more popular overseas, according to The Australian Financial Review.

According to statistics from Wine Australia, the average price per litre rose 1 per cent to $2.69 in the 12 months ended December 31 – its highest level in two years.

Yet, the pain endured by winemakers from a sustained grape glut, a high dollar and retail consolidation is far from over.

While the average price per litre may have jumped, exports fell 10 per cent to 703 million litres as producers struggled to sell cheaper wines, which account for more than half the nation’s exports.

Wine exports to Europe sank but sales to Asia rose.

Sales of wines priced below $5 per litre fell 19 per cent to $876 million. There was a 1 per cent gain for wines above $5 a litre to $646 million.

Cheaper wines are often referred to as “commercial” wines for the cash they generate.

Barossa winemaker John Geber began selling in the United States two years ago, confident that even though the strong Australian dollar was forcing other winemakers to retreat, his Chateau Tanunda winery could make it work.

The catch was that his wines had to sell for at least $US20 a bottle.

“We can do very well at that price point,” Mr Geber said.

In two years Chateau Tanunda has built up exports to 12,000 cases, or 8 per cent of annual production.

Last month its Grand Barossa Shiraz took out fourth spot in the Wine Spectator’s annual list of 100 outstanding value-for-money wines. It was one of only two Australian wines to make the list. The other was Two Hands.