INDUSTRY NEWS
Distell Sees 15% Revenue Growth Distell has posted an impressive 15% growth in revenue for the year to June 2012, despite subdued consumer spending in many of the markets where it trades. This growth has been bolstered by a 9.9% increase in sales volumes across its portfolio of wines, spirits and ready-to-drink (RTD) brands in both domestic and international markets and favourable exchange rate revenue rose to R14.2 billion. Earnings were impacted, however, by a once-off extraordinary excise duty provision amounting to R297.8 million as a result of a reclassification of wine aperitifs by the South African Revenue Service. Referring to the increased sales volumes in all product categories, Distell Group Managing Director, Jan Scannell, says RTD brands and ciders have performed exceptionally well. “A suite of strong brands across the portfolio also meant revenue growth could be achieved without sacrificing margins. Gross margin improved to 34.7% from 32.7% a year ago.”
2012 Cape Wine Guild Proteges - Chandre Petersen, Heinrich Kulsen, Philani Shongwe, Tamsyn Jeftha, Sacha Claassen, Elmarie Botes.
Nedbank Ups Investment for Transformation in the Wine Industry Over the past six years, Nedbank has invested more than R1.3 million to transform the wine industry and has almost trebled its annual contribution for 2012 to enable more aspirant winemakers to join the Cape Winemakers Guild Protégé Programme. The bank has been a keen supporter of the Guild, which celebrates its 30th anniversary this year, for almost two decades. Nedbank’s R684 000 investment to the Cape Winemakers Guild Development Trust will boost the Guild’s Protégé Programme which currently supports six young qualified winemakers completing their three-year internships under the mentorship of some of the country’s finest winemakers. “To create a flourishing wine industry, we need a corporate investment to 4
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make things happen. And through the support of the Nedbank Foundation we are able to implement our Protégé Programme by giving these winemakers the ability to one day plough back their knowledge and expertise, and thereby help to create a sustainable wine industry,” says Louis Strydom, Chairman of the Cape Winemakers Guild. The Cape Winemakers Guild Protégé Programme, a first for the wine industry, was launched in 2006 with the goal of encouraging transformation by cultivating, nurturing and empowering promising individuals to become winemakers of excellence. “Education and skills development are part of our Corporate Social Responsibility focus areas. Our involvement in this project is inspired by the realisation that education and skills development play a key role in growing the economy. We are pleased to see how the Cape Winemakers Guild Protégé Programme continues to make things happen,” said Kone Gugushe, Nedbank’s Divisional Executive for Corporate Social Responsibility. Students interested in applying for the Protégé Programme can visit the Guild’s website at www.capewinemakersguild.com
He said the company was on track with its goal to increase the year-onyear contribution of export sales to revenue. The revenue derived outside South Africa, on a non-duty paid basis, comprised 27.5% of the total, up from last year’s 26.4%. In the domestic market, Distell had outpaced the rate of growth achieved in the national retail alcoholic beverage sector for the reporting period, Scannell said. The company had grown local sales volumes by 9.6%, while revenue had risen by 13.8% to R10.6 billion. Strong growth within the company’s spirits division came from brand leader Amarula, cognac brand Bisquit and the Three Ships whisky range. All three brands achieved double-digit growth. Nederburg had performed extremely well in the premium sector. Paarl Perlé and Autumn Harvest Crackling had also delivered excellent results in the popularly priced category. The company’s sparkling wines had marginally outperformed the industry average, while fortified wines had shown an exceptional growth in volume and value, led by Sedgwick’s Old Brown Sherry. Wine sales growth had been slightly below the national average of 4.3% but Scannell said that there had been some significant highlights.
