(Wine-Searcher) - The gap between perception and reality must be bridged, James Lawrence says, if Australian wine is to flourish.

Over the past eight years, Australia's numerous problems have been well documented by journalists worldwide, much to the chagrin of the nation's proud winemakers.

The global financial crisis, grape oversupply and the unprecedented surge of the Australian dollar combined to form the perfect storm. This was exacerbated by the unremittingly severe weather and pernicious effects of climate change seen across certain regions in recent times. Drought became Australia's watchword; a two-year study of the Hunter Valley wine industry – undertaken by Professor Ian Goodwin of Macquarie University – warned that extreme heat, frost and disease could completely devastate grapevines over the next 65 years.

To make matters worse, Australia unleashed the (highly successful) Yellow Tail brand onto the world, a cheap-and-cheerful super-plonk launched by the Sicilian immigrant Filippo Casella and his son John. The massive success of Yellow Tail led to a surge of imitation brands, all of which helped to reinforce the image of Australia as the maker of sunshine-in-a-bottle wines, casting a dark and oppressive shadow over the multitude of characterful and terroir-driven wines that were quickly sidelined. The result: Australia lost significant traction in its once cherished markets, both in volume and value – Liebfraumilch syndrome had struck once again.

However, recent export data released by Wine Australia would suggest that the Antipodean industry has recovered from the hardships of the past eight years, with its premium wines once again hogging the limelight. The Australian Export Report indicates that in the 12 months to March 2016, Australian wine exports increased by 13 percent in value, its biggest increase since 1999. Overall, the value of wine exports rose to $2.1 billion, with a small, yet encouraging increase in volume sales as well.