RAY SMUTS HAVING DISPLAYED a good measure of resilience in the face of a continuing global wine glut, major distributor Distell is further strengthening its links with foreign companies in order to grow brands in major markets. The group has entered into a deal with Baarsma Wine Group Holding to carry some its top brands in Holland. This shortly after it concluded an agreement to become sole supplier of South African wines to Nordic distributor, Altia Corporation. Baarsma is a leading player in the Dutch retail and on-consumption channels, representing a range of established trademarks to more than 6 000 trade customers, in addition to selling to a consumer base of more than 30 000. Projecting a turnover of euros 175 million this year, the organisation’s portfolio includes a broad base of private label wines, now adding such well-known South African brands as Fleur du Cap, Two Oceans, Drostdy-Hof and JC le Roux, in addition to running a highly sophisticated bottling plant with annual capacity of 45 million bottles. Comments Distell’s director : international, Don Gallow: “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. “However, BWGH gives us access to a combination of supermarket and specialist retail and on-consumption channels for some of our more important trademarks.” What is more, in association with Wine Excel, a member of BWGH, Distell is able to explore the option of bottling some of its buyers’ own brands in Holland, where this is deemed appropriate. Meantime Distell is also fostering further ties with national US distributor, A V Imports, responsible for rapidly building the profile of the Two Oceans brand. Two Oceans is also doing exceptionally well in Canada, where it is the top-selling South African brand, says Gallow.
