SA and Oz join forces to create new wine export brand

Ray Smuts ARCH RIVALS BRL Hardy of Australia and Stellenbosch Vineyards have joined forces and formed an alliance to market New World wines in Europe. The joint undertaking will see a new trade brand created for Stellenbosch Vineyards with product available in Europe as early as September, distribution of which will be undertaken by BRL Hardy. Both come with a considerable pedigree. Stellenbosch Vineyards, boasting an annual turnover of R155 million, is one of this country's most important producers, marketers and bottlers of South African wine, producing around 850 000 cases of wine for local and export consumption on some 2 000ha of vineyards around Stellenbosch. Exporter of the year HRL Hardy, on the other hand, is Australia's second largest wine company, winner of that country's Exporter of the Year award in 2000, and possessing considerable market share in Australia, Britain, New Zealand, Europe and North America. The new South African trade brand will create an opportunity to establish a product known for quality and value for money, capitalising on the growing interest for South African wine in Europe. BRL Hardy denies the new deal is tantamount to a conflict of interest, saying it will also market Australian wines and that new brand will have to compete against other South African wines. It says there is no doubt that South Africa (with the new Stellenbosch Vineyards branding) has the capability to become an important player in Europe.