Spier Wines' non-core brands go to Cape Coastal Vintners

Under an agreement signed on 7 December 2006, all non-core brands and inventory will be traded under Cape Coastal Vintners' newly formed subsidiary Winecorp (Pty) Ltd. Spier Wines, and PLB, its UK-based importer and distributor, will each acquire a shareholding in Winecorp (Pty) Ltd, and will have board representation in the new company.

Spier Group CEO Vernon Davis said, "The transaction is a win-win for Cape Coastal Vintners and Spier Wines. We're boosting Cape Coastal's entry into the wine market and enabling Spier to consolidate further. The deal enhances co-operation within the wine industry, with bottling and warehousing to be shared by the two groups."

Core brands

Spier Wines will turn its attention to marketing its four core brands. Newly appointed Spier Wines MD Neville Carew said, "Spier, Savanha, Sejana and Naledi have grown dramatically over the past three years, both locally and internationally. Spier is keen to grow the generic Spier brand, which will impact on the wine brand, while marketing of the wine will equally boost the wider Spier brand."

The Cape Coastal Vintners acquisition is a boon to a broader strategic position that recently saw it acquire a majority share in US importer Hemingway & Hale. Cape Coastal Chairman Johann Pieterse said, "The deal with Spier fits our strategy to form joint ventures with major players in the wine industry. We've secured a solid base of wine supply through our alliance with five cellars, which will ensure stability in volumes and quality for our international markets."

The transaction will be effective from 1 February 2007. The period before and immediately after will be used to ensure a smooth transition for customers and other stakeholders.

In a separate transaction in October, the Longridge brand and winery, formerly of the Winecorp stable, was sold to a private investor from the Netherlands.