Over the last 10 years UK wine importer, North South Wines and major South African wine producer, DGB, have been on a similar growth trajectory – one that has eventually brought them together in a new partnership that will see North South Wines manage the distribution of DGB’s wine brands across all UK trading channels. It has also brought two very like-minded and driven business leaders together – North South Wines’ founder and managing director, Kim Wilson, and DGB’s executive chairman, Tim Hutchinson. Together they make a formidable business duo as Richard Siddle discovered while discussing their joint business strategy for DGB’s branded wine portfolio in the highly competitive UK wine market.
Talk to any wine importer or wine producer about what why they want to work together and they will invariably give you the same answer – they think they are cut from the same cloth. They share the same business values and beliefs and, ultimately, believe they can both make each other a lot of money. Not that they are always quite so forthcoming about the last bit.
It was crystal clear within minutes of sitting down with North South Wines’ Kim Wilson and DGB’s Tim Hutchinson that this is a working partnership built on the same foundations of how they want to do business.
Hutchinson is quite clear why he wanted to work with Wilson and North South Wines: “They’re hungry and close to the market. Those were the two things that struck us. A business has got to be kept simple and lean.”
A “hunger” that Hutchinson says can be seen in its “street fighter” mentality and a determination to work harder than its competitors. “I played cricket as a kid and it’s quite simple – you practice harder, you play better,” he adds.
As for Wilson it is the level of investment that DGB is making in its brands, its properties and vineyards that was the key reason for North South Wines wanting to represent them in the UK.
“At a time when people are coming out of wine the level of investment that DGB is making was really attractive to us,” she says.
They also refreshingly look for the positives and the possibilities there are in the market and not be dragged down by what Wilson dismisses as the “doom and gloom” that pervades so much of the wine industry.
“In doom and gloom there is always opportunity for those people who are out there getting business and being positive,” she says.
Hutchinson agrees: “When everyone is a prophet of doom, we are investing and got a very positive outlook. Whilst the market in South Africa might be difficult we are taking market share in leaps and bounds.”
He adds: “We have got to be the speedboat among the battle ships. We are not just competing with wine any more, but the whole liquor category.”
DGB has long made a commitment to having its own in-market teams to manage and drive its wines and build its global distribution network. Hence the decision to hand that responsibility over to North South Wines is a major one.
Hutchinson says its international strategy needs to be fully aligned with what it is doing in its vineyards and with its brands. It has to be investing in all areas of the business in order to be able to make the right premium wines, from the best vineyards, that then give it the platform to build sales and drive distribution in each of its target markets around the world.
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