The makers of Australia's highest selling export wine have produced their one billionth bottle.

The Yellow Tail brand, which features a kangaroo on the label, is exported to more than 50 countries and is the number one imported wine in the United States and Canada.

John Casella, of Casella Wines, which produces Yellowtail, says it's a significant achievement.

"It's pretty close to one billion litres of wine that we've sold since we introduced Yellow Tail in 2001. I don't believe there's many brands, or wine companies, that have been able to achieve those sorts of numbers."

While the Yellow Tail brand has continued to build on its success in the export market, other parts of the Australian wine industry are struggling.

Paul Evans, chief executive officer of the Winemakers Federation of Australia, says widespread concern about the health of Australia's wine industry has led his organisation to embark on a major review.

"There's a number of challenges facing the industry. They're on the demand side, they're on the supply side. There's concerns about retail power here in the domestic market place. There's questions and issues around wine tax arrangements and there is also the question of funding to do the initiatives that we've recommended," Mr Evans said.

"There is, if you like, a perfect storm that the industry has faced in recent years; exchange rates, retail consolidation, a softening in consumer demand for Australian wine in some of our key export markets. "

Members of the association have been asked to consider 31 recommendations to revive the industry and consultation forums have been held in the country's various wine regions to try to reach agreement on what can be done better.

"It's also a time of opportunity. We have emerging markets in China, for example, which are very exciting, so I think the consultation process is very timely and the issues are plentiful."

Mr Casella says Yellowtail has managed to avoid some of the troubles that have beset other Australian wine producers. He points to a lack of vision in the industry as one of its biggest problems.

"It should really be about innovation, creation of wine styles and exploiting the assets or the wine capabilities you have.

"We need to identify ourselves fairly strongly as different, rather than just following what somebody else does."

Mr Casella rejects the idea that Yellow Tail's billionth bottle is a victory for quantity over quality.

"All of that is total nonsense. They should get on and create wines that people want and market those wines in a way that encourages them to trial those wines and produce wines that win these consumers over, rather than worrying about what other people are doing at different price points."