Distell to consolidate core wine brands, sell some 'ultra-premium' assets

Wednesday, 1 April, 2020
Fin24, Carin Smith
Distell announced on Monday that it will consolidate its core wine brands and capabilities to focus on growth in mainstream and accessible premium segments.

The company is one of Africa's leading producers of spirits, wines, ciders and "ready-to-drinks" (RTDs) as well as the world's second-biggest producer of ciders. Some of its top brands include Amarula, Hunter's, Savanna, 4th Street, Klipdrift, Nederburg, Richelieu, Viceroy, and J.C. Le Roux.

Distell buys 35% of South Africa's grape volumes each year, of which less than 4% is from its own farms. Its wine business represents about 36% of total wine sales by value in South Africa, and it is the largest exporter of wine into Africa. 

Its five-year strategy, presented at its recent interim results presentation, includes a further focus on sustainable growth and returns, "leveraging core strengths and capabilities to drive, defend, and expand its markets on the African continent and select International markets", it said in a statement on Monday.

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