Du Toitskloof, Namaqua Wines to distribute jointly

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Mongezi Mtati

From 1 September 2013, Du Toitskloof Wines and Namaqua Wines have entered into a third-party distribution agreement, which is expected to enhance the reach of both parties and improve their distribution and cost efficiencies in servicing their off- and on-trade clients throughout South Africa.

Namaqua Wines currently distributes its own wines as well as those of Van Loveren and several brands within the stable of US wine giant E&J Gallo.

This new agreement will also see Du Toitskloof Wines and Namaqua Wines giving all their brands a larger footprint in the market, according to Du Toitskloof MD Marius Louw.

"Both have built a substantial network of sales teams, distribution points and listings. Our combined resources and specialities will not only allow for improved service across a wider geographic reach to metropolitan and smaller centres, but also offer greater economies of scale, at a time when we need to manage rising input costs, particularly fuel. What will not change, however, is that each brand will continue to manage its own identity and marketing. Structures have been put in place to ensure the protection of each brand identity within this distribution model," he explained.