Roughly 20 years ago, wines from both Australia and Chile began to appear on U.S. store shelves.

Both represented good values, with Australia offering wines at the $5 price point and Chile at about $1 less.

 Both nations showed they could deliver good quality at bargain prices and both boasted lots of vineyard acreage in cooler climates.

 The difference between the nations’ histories as winemaking cultures was that Chile was new at the game, having just emerged from a repressive regime and in the process of rebuilding under a less restrictive political system.

Australia, on the other hand, was a democracy that had made wine commercially for well over a century, that had well-established wine schools and a wine research institute that was doing groundbreaking work in areas like viticulture and enology.

And thus was Chile saddled with the image of a bargain wine culture, despite the efforts of some well-regarded brands like Cousino-Macul, Santa Rita, Veremonte, Casa Lapostolle and Montes, which were making quality statements and delivering quality wines — at prices reflecting that quality.

A number of these wines sold for $20 and more (some a lot more), and the disparity between the $3.99 wines and the upper-echelon wines left many consumers confused: What was Chile? A producer of great wines worth high prices? Or just a bargain-basement producer?

No one was more aware of the confused message than members of the Guilisasti family, which owns the largest winery in Chile, Concha y Toro. Although that brand and its Walnut Crest (the company’s low-end line of wines) have sold millions of cases here, the managing director of the company recently told Wine Business International that Chile’s main role now is to avoid the reputation of low-end wines.

 “It is vital that we construct brands,” said Guilisasti. “The consumer does not understand the different zones in Chile. Our image is in a stage of transition. Some consumers already know the quality of our premium brands,” implying many do not.

 To solve that problem, Guilisasti’s firm has developed a new line dedicated to premium-caliber wines. To avoid the stigma of the past, the line is being imported not through the company’s traditional Concha y Toro importer, Banfi, but through the established Vineyard Brands importer.

The new line of wines is called Cono Sur, and it has nothing to do, directly, with the word “connoisseur.” “Cono” refers to the cone-shape of South America, and “sur” is Spanish for south.

Despite some modest pricing, all the wines of Adolfo Hurtado are exceptional values. The only problem I see for these wines is that most are priced too low for the typical under-$20 buyer.

 That is, of the Cono Sur wines designated Vision, which retail for $13 a bottle, most would appeal to connoisseurs who’d willingly pay $20 or more for them. And some former $3.99 Chilean wine buyers may not appreciate the improvement in quality and might wonder why the wines are so expensive.

 A classic example is the 2005 merlot from Colchagua, with its classy blueberry and spice, richness and perfect balance. This is a $20 wine masquerading at $13 or less. Or the 2007 Sauvignon Blanc from Casablanca Valley, with its lemongrass, tropical fruit and wild spice character.

I was also enamored of a 2005 cabernet sauvignon from Maipo, with its ripe, plump depth of black fruit and a trace of pepper.

Other brand extensions include exceptional wines called 20 Barrel (all priced at $24 or less), a Cono Sur Organic line at $11, and the straight Cono Sur line that’s hard to beat at $9 or less. See below.

Wines of the Week: 2007 Cono Sur Riesling, Bio-Bio ($9) — From a new, cool wine-growing region far south of Santiago comes this startlingly refreshing white wine with white flowers, blossoms, peach, lime and quince. Also, a 2007 Gewurztraminer from Casablanca ($13) that exudes lichee nuts and carnations, has just enough sugar to match well with Thai food, and is a glimpse of what Chile promises to deliver in the future. Also, Carmenere, a red wine, is exceptional at $9.

Dan Berger resides in Sonoma County. He publishes a weekly newsletter on wine and can be reached at danberger@VintageExperiences.com.