Casella Wines has posted a $5.5 million loss for FY25, following its sales in the United States falling by almost 17%.

Australian sales for Casella were $220.73 million and ahead of the US for the first time, with the latter only reaching $172.94 million.

The US is the wine giant’s biggest market for its iconic Yellow Tail brand. Known for being accessible, affordable, and featuring a kangaroo on the label, Yellow Tail is a top-selling brand in over 70 countries. 

The company also owns brands including Peter Lehmann, Brand’s Laira, Baileys of Glenrowan and Morris of Rutherglen.

It’s the company’s first net loss in 13 years and a dramatic fall from recent accounts, which saw a profit of $18.6 million in 2024 and $26.5 million in 2023.

According to a report in The Australian, results for FY25 included just under $2.1 million in goodwill impairments, a $15 million loss on foreign exchange movements and a $50 million rise in raw materials costs.

However, it wasn’t all bad news for Casella. Sales rose to $546.24 million, up from $536.58 million in FY24, bolstered by the company’s burgeoning ready-to-drink spirits portfolio and contract brewing.

The Australian Financial Review’s Street Talk revealed in August 2025 that Casella was seeking to sell a portfolio of eight premium vineyards – or 458 hectares of land – in South Australia’s McLaren Vale and Adelaide Hills wine regions.

“The vineyard sale comes as makers of lower-end wine, and their suppliers, face ongoing pressure with an oversupply for cheaper red wine acting as a drag on the industry for several years,” AFR said. “Casella acknowledged that in an interview last year, predicting a wave of distressed assets to hit the market.”

Casella is owned by brothers John, Giuseppe and Marcello, who were recently named at no.117, no.118 and no.119 on Australia’s Richest 250 List, with a combined fortune of $1.56 billion.