In its promotional material for its Bin 707, Penfolds states that “Bin 707 is Penfolds’ Cabernet Sauvignon version of Grange: ripe, intensely-flavoured fruit; completing fermentation and maturation in new oak; fully expressing a Penfolds understanding of multi-vineyard, multi-region fruit sourcing.”

No-one can doubt the pedigree of Bin 707 or its status as one of the Australia’s benchmark wines. It is up there with Grange in the pantheon of Australia’s 17 most exceptional wines, as ranked by the Langton’s Classification of Australian Wine V – the form guide of Australia’s best performing and most prized wines.

But current prices of more recent vintages of Bin 707 are less than half the price of comparable vintages of Penfolds Grange. Current prices for other iconic cabernets like the Cullen Diana Madeline Cabernet Sauvignon Merlot, the Moss Wood Cabernet Sauvignon and the Mount Mary Vineyard Quintet Cabernets, for example, are all in the $100 to $200 price range, even though most of these wines are made in vastly smaller quantities than Grange and have almost equally impressive reputations for longevity.

But is the price discrepancy between top Australian cabernets and and their shiraz counterparts, which would also include acclaimed drops like Henschke Hill of Grace and Torbreck’s The Laird, warranted?

Certainly Australian cabernets are up against some stiff competition from overseas. Great Bordeaux cabernets like Château Margaux  and Château Lafite Rothschild are widely considered the greatest wines in the world. And in the New World, California’s reputation has largely been forged by international acclaim for a stellar line-up of cabernets from great producers like Harlan Estate, Bryant Family Vineyard and Shafer to name but a few. The top wines from all of these producers typically trade at much higher prices than comparable Australian cabernets.

For Australian shiraz the international … Read the rest