SOUTH AFRICA: Distell makes first overseas acquisition
South Africa's Distell has purchased a 10% stake in its Canadian distributor as it makes its first tentative acquisition outside Africa.
The Ontario-based Peter Mielzynski Agencies has had a 10-year relationship with Distillers Corporation before it merged with Stellenbosch Farmers' Winery, to form Distell.
It was invited into the partnership by the Canadian national distributor, which handles other global brands such as Glenfiddich, Grand Marnier and Cinzano and in 1999 celebrated its 20th anniversary.
"Peter Mielzynski's approach was prompted by the merger and the creation of a significantly expanded portfolio of strong South African liquor brands with international potential, particularly Amarula Cream Liqueur," said André Steyn, corporate affairs director at Distell.
The perception of Distell as a global player had also been central to the recent joint venture concluded between Distell and prominent US marketer and distributor Brown Forman, which had very successfully launched Amarula Cream Liqueur in that country in February, he said.
"Canada, where the total market of imported alcoholic beverages was valued at Canadian $1,4 bn in 2000, represents a significant growth opportunity for Distell," said Steyn.
"Peter Mielzynski Agencies enjoys close ties with Canada's provincial liquor control boards, responsible for retailing all alcoholic beverages virtually throughout the country.
"They are keen to grow the market for all Distell's product categories, including wine. It currently represents the company's Fleur du Cap, Durbanville Hills, Two Oceans and Drostdy-Hof wine brands," he said.
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Distell's broad-based black economic empowerment deal will cost about R870m (US$137m), but the new partners will be locked into an eight to 10 year agreement before any dividends are realised....
Distell today announced its broad-based transformation plans between a black economic empowerment group, certain employees and a corporate social investment trust (CSI Trust)....
KWV International has launched the second phase of its assault on the South African market with the introduction of its KWV 3-year-old brandy and Cathedral Cellar and KWV Classic ranges as it expands ...
Distell has appointed Don Gallow as its new director of international operations, in place of Etienne Heyns who left the company two weeks ago. ...
The Brown-Forman Corporation has added the Durbanville Hills range of wines from South Africa to its US portfolio....
Distell's headline earnings have rocketed by 34.5% to ZAR482.2m (US$75.2m) for the year to 30 June, thanks to improved performance from all the company's assets....
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