Distell strengthens international distribution

Commenting on the deal that will see BWGH carry drive brands such as Fleur du Cap, Durbanville Hills, JC le Roux, Pongracz, Two Oceans and Drostdy-Hof, Don Gallow, Distell’s director: international, says: “Historically Distell has given less weight to this market than many other South African producers, because it is characterised by heavy discounting, whereas our policy is to protect brand equity.

Balanced exposure

“However, BWGH gives us access to a combination of supermarket and specialist retail and on-consumption channels for some of our most important wine trademarks. The agreement gives us a balanced exposure across a range of channels and price points. Moreover, with Wine Excel, a member of BWGH, we can explore the option of bottling some of our buyers’-own-brands in Holland, where this is deemed appropriate.”

BWGH is a leading player in the Dutch retail and on-consumption channels, representing a range of established trademarks to over 6000 trade customers. The organisation also sells direct to a consumer base of over 30 000.

Its portfolio includes a broad range of private label wines and it also supplies buyers’-own-brands to many of the country’s major supermarket chains. In addition, the group, which is projecting a turnover of €175m for the current financial year, runs a highly sophisticated bottling plant with an annual capacity of 45 million bottles.

BWGH was recently identified as a young, dynamic and fast-growing company by ABN Amro Capital, which acquired a major share of the Dutch distributor, now active in 28 markets across the world.

Profile building

Meanwhile, Distell is also strengthening its ties with national US distributor A.V. Imports that is rapidly building the profile of its lifestyle brand Two Oceans. Among the retailers who have listed the brand are Hyvee, with 220 stores in the mid-west; Fortune 500 chain, Publix in 200 of its stores, mostly located in the south; and 500 Food Lion stores in the south and mid-Atlantic states.

“A.V. Imports represents a number of well-known trademarks from European and New World wine-producing countries and offers us access to multiple retailers as well as the independents in the increasingly important but complex American market, where the choice of distribution partner is critical to success.”

Gallow says Two Oceans is also doing exceptionally well in Canada, where it is the top-selling South African brand, with the Sauvignon Blanc in particular leading sales. It is listed by both the Liquor Control of Ontario (LCBO) and Société des Alcools du Québec (SAQ), the state-run retail monopolies in these provinces.