COFCO to distribute DGB’s wines in China
South Africa’s wine, spirits, and craft beer producer DGB has secured an exclusive distribution agreement with China Cereals, Oils, and Foodstuffs Co-operation (COFCO).
The COFCO Group is China’s leading importer and exporter and the agreement will see COFCO operate as DGB's sales, marketing, and distribution partner.
In the initial phase, COFCO will import and market DGB brands Boschendal and Tall Horse. This is expected to be later expanded with other brands from the DGB wine portfolio.
COFCO’s wine and spirits division imports wine in China and owns Great Wall brand.
China has become an important market for wineries of South Africa.
According to China’s customs department, its wine import market totaled 638 million litres in 2016, with a year-on-year increase of 15%. Value of Imports grew by 16.3% year-on-year, touching $2,364bn.
Wine sales in China are predicted to grow by 39.8% over the next three years. This will make the country the second largest wine market in the world after the US, beating France and the UK.
COFCO's wine general manager Castle Li said: “We are proud to be associated with the well-respected South African industry-leader DGB. Chinese consumers are showing increased interest in new-world wines and we believe DGB, with its diverse portfolio, is well-positioned to provide in this need.
"The Boschendal and Tall Horse brands offer two of the great market drivers: value and reputable quality. We look forward to increase awareness and associated demand for these DGB brands in the market, and foresee a longstanding relationship.”
DGB’s chief executive officer (CEO) Tim Hutchinson said: “We are extremely excited with our new relationship with a strong, experienced and dynamic business such as COFCO.
"We have noted an increasing interest in the South African wine category as consumers are becoming more adventurous and willing to make new wine discoveries. We are confident that the quality, heritage and authenticity of our brands will resonate with Chinese consumers.”