A merlot from McLaren Vale has won 'Best of Show - Australian Red' at the 2017 Mundus Vini Grand International Wine Awards in Germany.

The trophy represents a major feat for producer Penny's Hill, which picked up the same accolade last year with its 2014 Footprint Shiraz.

To have won the same prize again is one triumph, but to do it with a varietal not as well recognised from this region and a wine that retails for just $25 is credit to the winemaking team's skill and persistence.

The winning wine was the 2015 Malpas Road Merlot, grown on a vineyard planted by the family from which it takes its name in 1991. The soils on the site are not the easiest for vines to grow from, but from challenge comes great reward and Penny's Hill believes such toughness yields better grapes.

The merlot also picked up a gold medal at the esteemed competition, as did Penny's Hill 2015 Footprint, Skeleton Key and Cracking Black Shiraz wines.

Penny's Hill Group Winemaker Alexia Roberts was extremely pleased to have won the award twice.

"To be awarded Best of Show - Australian Red two years running in such a strong international competition is truly rewarding.

"McLare Vale's climate is well suited to producing premium merlot. The Malpas Road Merlot is grown on a single vineyard and shows great fruit weight and generosity. Balanced by fine savoury tannin, this wine has great drinkability."

Founder of Penny's Hill, Tony Parkinson, congratulated his winemaking team.

"This is an outstanding result. I'm proud and excited by the success Alexia and her team are enjoying. Her passion, talent and dedication have raised the international standing of Penny's Hill to the highest level."

Penny's Hill wines are distributed by Mezzanine Wine.

Image: Alexia Roberts and Tony Parkinson