The Advertising Standards Authority has ruled against Premier Estate Wines after it received complaints about the company's #TasteTheBush campaign.
The video campaign ran online between August 12 and September 4.
The ASA received eight complaints about the way the campaign's tag-line was used alongside images of a woman with a glass of wine placed in front of her crotch.
Five of those complaints, including one from Wine Australia, argued that the campaign was sexist and degrading towards women.
Alcohol Concern, and two other complainants, charged that the ads were in breach of the advertising code because they linked alcohol with sexual activity.
Budge Brands Ltd, trading as Premier Estates Wine, defended the campaign. It argued that the video was targeted at a mature 35- to 45-year-old audience and was intended to be playful and tongue-in-cheek.
It did not deny the double-entendre, but pointed out that there was no suggestion of, nor link with "seduction, sexual activity or sexual success".
The actress was not dressed in a provocative manner and showed no seductive body language, it said.
The ASA ruled that most viewers would understand the claim "...some say you can almost taste the bush" to be a reference to oral sex.
While it acknowledged that the woman in the video seemed only mildly embarrassed by the double entendre, the ASA judged it to be degrading, and concluded that it was likely to cause serious or widespread offence.
Similarly, because the ads clearly referenced oral sex and featured an alcoholic product, the ASA ruled that they linked alcohol with sexual activity and were in breach of the code.
The campaign was developed for Premier Estate Wines by Saatchi Masius, part of the Saatchi and Saatchi Group.