SOUTH AFRICA: Distell received R46.5m for Martell
Distell received R46.5m in compensation for the termination of the South African production, marketing and distribution rights of the Martell Brandy trademark it sold to Pernod Ricard earlier this year.
At the time of the deal, in terms of a Competition Tribunal finding into its merger, the Stellenbosch-based wine and spirit producer had to give up certain medium-priced spirits. Both companies declined to specify the amount involved at the time.
It became public knowledge in Distell's annual report, released today, where Distell also revealed for the first time that it made a R5m profit from the sale of its retail subsidiary, Western Province Cellars, which it sold last July.
According to Distell MD, Jan Scannel, the local wine and spirits market was likely to remain intensely competitive over the next few years.
"An expected 3% growth in the domestic economy, coupled with the drop in interest rates should benefit consumer demand for our products.
"However, the global economic outlook remains uncertain. Success in the international markets, which is key to our medium and long-term growth, will therefore require a strong focus on the achievement of cost-efficiencies in order for Distell to remain competitive," he said.
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