South African wine and spirits group Distell has announced the sale of wine farms and brands with the aim of doubling revenue and profits by 2021.
According to Supermarket & Retailer, Distell CEO Richard Rushton said that the company had already sold the La Bonheur and Stellenzicht wine farms and respective brands, which were part of the Lusan premium wine estate.
The move will allow Distell to “redouble our efforts on our winning wine brands that we are confident of growing strongly in the longer term”, Mr Rushton is reporting as saying.
The company said that its plan was to focus on the four core brands Nederburg, Fleur du Cap, Alto and Durbanville Hills. In addition, the Allersverloren and Plaisir de Merle brands are expected to be retained.
The wine businesses sold to date represent only 3 to 4% of the company’s assets, or around 500 million ZAR ($32 million), a Distell executive added.
Source: Supermarket & Retailer