While Penguin is a British company, the idea was rejected in the UK by cautious executives who must now be kicking themselves over what is almost entirely an Australian triumph. The Popular Penguins series was conceived a decade ago by the company's Australian sales director, Peter Blake. He got the green light for the project last year only after "chipping away" at the company's London head office.

According to one company source in London, bosses were so doubtful about the concept that they limited the sales area to Australia, New Zealand and India, a decision which cost them dearly in Britain's Christmas market. This is ironic, considering the "bargain" ethos of the series mirrors the sentiments that brought about Penguin's creation by Allen Lane. According to Penguin, it was Lane's frustration at being unable to buy a good cheap book as he waited for a train that led him start the company in 1935. It is now rumoured that Penguin will launch the series in Britain this year. Asked about his bosses' reluctance to launch the concept globally, Blake parries politely: "They think it's a terrific initiative and they are watching with a lot of interest."

One reason for the series' success is undoubtedly the price. At $9.95, each book is cheaper than a packet of cigarettes, which was Lane's rule of thumb when he began producing paperbacks more than 70 years ago. "The price bracket they've been put in makes them very appealing," says Chris Siver, manager of Dymocks bookstore in Camberwell. "Since they've been on sale we've had people coming in and buying three or four at a time. It's a case of thinking, 'I could buy one book for $30 or get three instead'.

The use of the orange and cream design, which mimics Penguin covers of the 1930s and again in the '50s and '60s, was deliberately aimed at tickling readers' sense of nostalgia. Says Blake: "They are instantly recognisable, and have an emotional pull. Most people or their parents have got second-hand or old Penguins at home that have the same livery. "But it's not only pulling on that nostalgic lever. It's also got that retro coolness. We've found that younger readers have been really drawn to them."

And what about what's between the covers? The Popular series showcases the works of authors as varied as Jane Austen, Capote, Updike and Hornby on the fiction side, and titles such as Six Thinking Hats, The Consolations of Philosophy and A Year In Provence in non-fiction. The publisher's team in Australia came up with a 100-strong shortlist and then passed it to the London office for a final choice. The success of the range has caused just one headache: what titles should be included when the next series is brought out in the middle of this year?

"We'll definitely be launching another set of 50 titles later in 2009 and it's an exciting process drawing up the list of titles we want to include," says Blake. "There will be a number of Australian books in the collection and Picnic At Hanging Rock will be one … though we're happy to hear any suggestions."