Winery benefits from BEE distribution model

The objective behind the founding of PB Liquor Merchants (Perdeberg Liquor Merchants) was to establish a BEE sales-and-distribution company in South Africa that would service the on- and off-trade consumption alcohol beverage markets.

The winery had been facing distribution challenges and had previously battled to find an appropriate distributor to list and deliver its considerable output (21 million litres) to both the on- and off-trade. Bassap Investments (Pty) Ltd was then established in 2000 with founding members who had significant business experience and a 39% shareholding from historically disadvantaged women's groups from the Western, Southern and Northern Cape.

Following the successful partnership with Bidvest BEE subsidiary and 13% shareholder, Bassap Investments Pty Ltd, the winery has secured listings in Pick ‘n Pay (from May 2007 for six cultivars), with Checkers (from February 2008) and with Spar from February 2008, Makro, Metro Trade and Friendly stores.

What could not be achieved at grower level has been achieved by using a business model that embraces the spirit of economic upliftment, and is a win-win story for producer and distributor. It was a smart move, with great forward thinking by Bidfoods and Perdeberg Winery that this alliance has been formed, one that complies with BEE codes.

It has resulted in listings being achieved across regions of SA that the winery was not serving at the time and boosted sales by having affordable, honest, drinkable wines at the right price point.

In 2002, they were involved with a BEE empowerment deal with Bidvest to the value over R2bn, and through Dinatla, which owns 13.5% of Bidvest, a stake the same size as Investec's.

Through sister companies under Bidfoods like Cargo Carriers, Caterplus, Chipkins, Crown foods, Seaworld and Steiner group, there was enough synergy and cross–selling to gain new listings for the estate's wines in major, national retail chains.

We are all aware that the dti BEE scorecard requires procurements to come from BEE suppliers. This means that every player with over 50 employees or with a turnover exceeding R20-m per annum has to play by the rules. The winery's new distribution model satisfies the code that is followed by the major retail chains.

It also means that this little known but well-established wine brand, which offers great value, can now be found in most supermarkets in SA. Perdeberg wines are identifiable by the black and white striped zebra logo featured on every bottle.