The Pretoria High Court has ruled in favour of Distell to continue producing and distributing Gordon's Dry Gin in Southern Africa, ending a long running court battle which began in 2001 when Guinness UDV's parent company, Diageo, gave notice of its intention to terminate its 27 year old agreement with Distell to produce, distribute and market Gordon's locally.
"Gordon's has been in the Distell fold since 1975 when the then Distillers' Corporation was first granted the exclusive rights for the brand in South Africa," says André Steyn, Distell's Corporate Affairs Director.
"Since then, Distell has steadily built Gordon's into one of the best-selling white spirits in South Africa, with an annual sales turnover of over 5 million litres. In terms of the contract, Distell is required to maintain a minimum sales target, which the group has far exceeded each year," says Steyn.
Guinness UDV used the restructuring of the Diageo group as the main reason for taking back the production and sales rights to Gordon's. In terms of revenue, Diageo is today the largest producer and distributor of liquor in the world.
"We welcome the latest judgement which follows on the successful conclusion of the Distell merger case. The removal of these obstacles allows us to proceed unhindered with our plans to become South Africa's leading marketer and exporter of world-class brands," says Steyn.
Distell's portfolio of over 300 products includes key 'drive brands' such as Gordon's Gin, Amarula Cream, Hunters Cider, Klipdrift Brandy, Nederburg wines, and JC le Roux sparkling wine.
