Distell sells off wine brands

South African drinks group, Distell, has divested itself of several vineyards and estates as it seeks to concentrate on just four key brands.

Distell vineyards in AfricaThe company has reportedly sold off the Le Bonheur and Stellenzicht estates and their respective ranges and more wine assets may follow as the group has said it intended to streamline its wine portfolio and concentrate in particular on: Nederburg, Fleur du Cap, Alto and Durbanville Hills.

Managing director Richard Rushton told Business Daily that: “Agreements are significantly advanced on what [wine] assets we will be left with.”

Chris Logan, CEO of Opportune Investments and a Distell shareholder, told the same journal he thought the move was “long overdue” and that it made sense to focus on the very top brands, especially as wine makes up a very small part of Distell’s overall business. He drew parallels with Distell’s recent move and Treasury Wine Estates actions a few years ago to divest itself of non-essential brands thathave subsequently helped the Australian group dig itself out of serious financial difficulty.

The news came as Distell announced its half-year results last month, which Rushton said showed the group was delivering “solid operational results.”

Overall, group revenue increased by 3.7% to R22.3 billion, while maintaining volumes. The spirits portfolio was the standout performer, delivering strong volume and value growth while the wines held their own and the cider and ready-to-drink (RTD) category showed a volume recovery.

Headline earnings however were down 3.6% to R1.6bn, heavily impacted by the current strength of the rand.

The group said: “Global economic growth remains muted while African GDP growth is still being impacted by low commodity prices. On the domestic front, recessionary circumstances continue to put additional pressure on consumers.

“A modest recovery in economic growth can only be expected in the latter half of next year.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

International Sales Manager

Crush Wines Ltd
Home based/Wiltshire office, UK

Head of Marketing

Amathus Drinks Plc
London, UK

Sales Representative - Private Customers

Corney and Barrow
Central Hong Kong, HK

Export Manager UK On Trade

AdVini
Home based in London or the South East, GB

Global Head of Marketing

ATOM Brands
Tunbridge Wells, GB

Sales Executive

Three Wine Men
Home-based but must be available to travel throughout the UK with frequent trips to London, GB

Senior Sales Operations Executive

Enotria&Coe
Park Royal, London, GB

Sales Administrator

Les Caves de Pyrène
Guildford, UK

On Trade & Corporate Accounts Manager

The Champagne Company
Birmingham, UK

Customer Service Assistant

The Champagne Company
Birmingham, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

The Global Pinot Noir Masters 2018

Deadline : 31st January 2018

The Global Organic Masters 2018

Deadline : 12th February 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more