To many American oenophiles, Jacob's Creek is synonymous with bargain wines—the kind drunk only where politeness demands it (and sometimes not even then). The Australian brand may produce flavorful reds and whites that offer excellent value, but traditionally the wines haven't held much appeal for people accustomed to first-growth Bordeaux and grand cru burgundies. Nor has Jacob's Creek catered to them. 

While packed with ripe blue and black fruits, the Johann shows a bit more restraint and elegance than many Australian reds; the oak is pronounced, but not oppressively so. If big, sun-splashed Aussie wines are your thing, the Johann is a commendable choice.

The company is moving into the ultra-luxury category because American wine drinkers are moving upmarket in their tastes. But that doesn't necessarily mean that the Johann is going to be an easy sell.

Jacob's Creek, which since 1989 has been owned by French beverage-conglomerate Pernod Ricard, is one of Australia's best-known wine brands and has long enjoyed a formidable presence overseas—not least in the U.S., where it has forged a strong identity as a reliable source of lower-priced ($10 and under) cabernets, chardonnays, and shirazes. Last year, the company sold 1.1 million cases in the United States, its best performance to date.

In 2005, Jacob's Creek moved into the luxury end of the American market, introducing two critically acclaimed wines from its Heritage Range, the Steingarten Riesling ($28) and the Centenary Hill Shiraz ($35). The company brought in only 500 cases of each wine, maintaining its focus on entry-level bottlings. Now, says Stephen Brauer, vice president and general manager of Pernod Ricard U.S.A. Wines, the company has decided that the premium and luxury categories are where the growth lies in the U.S. and is adjusting its strategy accordingly.

"People are becoming more confident in their wine knowledge, and as they do, they trade up," says Brauer. "Ten years ago, they were drinking white zinfandel; today, it is chardonnay and pinot noir."