Distell forms new company to handle premium wine operations

Distell is set to establish Libertas Vineyards and Estates, a new standalone company that will sell wine brands such as Alto, Nederburg, Durbanville Hills, Plaisir de Merle, Pongrácz, Fleur du Cap and Allesverloren.

Chateau Libertas, Zonnebloem and the Tabernacle will also be available from the new unit.

Distell appointed entrepreneur and marketing specialist Kay Nash as managing director for its new business.

Nash was quoted by various media sources as saying: “We are making bold decisions regarding how we operate and compete.

“There is recognition that the category is challenging and inherently complex and requires a specialist focus.”

The company currently has eight brands and 40 sub-brands, which operate in 88 markets worldwide. The company’s business units use around 22 different grape varieties and span 384 stock keeping units (SKU).

Libertas Vineyards and Estates is expected to help Distell focus on the premium and fine wine categories. The move is aimed to review its large existing portfolio and combine the secondary production from four sites to a single site at Nederburg.

The company’s annual report states that its wines grew 11.6% last year.

South African wines have been declining in markets such as Sweden and Germany, Reuters reported. A slow economy and rising cost of living in the country have hit consumers’ disposable income.