S AFRICA: DGB acquires Boschendal Wine
DGB Ltd has acquired the Boschendal Wine business from Boschendal Ltd effective as of yesterday (30 August). No price for the deal was disclosed.
The transaction includes the Boschendal wine brand, winery, cellar, production facilities and the cellar-door wine tasting and sales center on the Boschendal farm.
Boschendal Ltd, owners of the 2240 hectare estate, will continue to manage the vineyards. A supply agreement has been entered into where the two teams will work hand in hand with the Boschendal viticulturist, wine makers and vineyard management team.
"I believe the Boschendal wine brand will add tremendous value to DGB's wine business as it is an icon in the Cape winelands," said DGB's CEO Tim Hutchinson. "Anglo American built a truly great brand and we are now reaping the benefits of their vineyard investment program."
Jacques Roux, previously of Graham Beck wines has been appointed marketing director wines and Vera Orffer has been transferred to Boschendal as wine marketing manager.
In a statement, the company said that, while Boschendal is recognised internationally, only a small share of the volumes is sold on the international market. DGB intends to use its infrastructure and international network to grow this sector of the business dramatically.
"In the United Kingdom, South Africa's biggest export market, a very small share of South African Wines are sold above the GBP6.00 price point," said Hutchinson. "I believe that Boschendal is a brand that could well lead South Africa in the GBP7 to GBP20 category. South Africa has to sell more of its volumes in this sector to build SA's image. We cannot build our industry on value-for-money entry-level wines. In Boschendal we have the vehicle to achieve what Penfolds have done for Australia on a global basis, as the trade and consumer awareness of the brand both locally and internationally is remarkable."
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