South African wine producers Winecorp and Cape Coastal Vintners/Strategy Partners have called off merger talks.

Winecorp CEO Vernon Davis said today (1 June) that it had become clear after three months of due diligence that the anticipated benefits of the proposed merger would not be achieved.

Industry analysts had predicted this outcome almost from the outset. Winecorp, with well-established brands including Spier and Longridge, together with its developed marketing and distribution networks on the domestic and international markets, would not have gained much from the deal.

The CCV/SP partnership is still in its infancy, together with a complicated alliance with five other wineries, a black economic empowerment company and brands not yet fully established.