Anheuser-Busch InBev and SABMiller breaching merger conditions – says Distell

SOUTH AFRICA – Distell, South Africa’s wine and spirit producer is accusing the entity formed from the 2016 merger of the world’s largest beer companies Anheuser-Busch InBev and SABMiller of breaching merger conditions. Distell approached the Competition Tribunal claiming that the merged entity removed competitors’ advertising material from retail outlets, among others, reports Reuters. However, the Competition Commission has maintained that there is no breach of the merger conditions and that the complaints “have no merit and should be dismissed,” the tribunal added. In response SABMiller argues that Distell’s complaint…

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Economic hardships swing South Africa’s Distell into US$52.15m write downs

SOUTH AFRICA – Distell, a South African based beverage manufacturer, has said that economic challenges in Angola and Zimbabwe have pushed the company into combined write-downs of US$ 52.15 million (R790.1m). The maker of Amarula, Savanna and Hunter’s Dry brands, has written down its investments in Angola by US$34.59 million (R524m) in addition to a credit loss provision of US$17.57 million (R266.1m) in Zimbabwe. The beverages firm noted that the devaluation of about 50% of the Angolan kwanza and its impact on the Angolan economy had negatively affected the earnings…

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Nigerbev Limited launches new cream liqueur to grow market share

NIGERIA – Nigerbev Limited, makers of Best Global Brands (BGB) spirits in Nigeria has launched a new premium cream liqueur -Best Honey Cream Liqueur – in the market The beverage manufacturer said: “Best alcohol premium beverage aims to satisfy the taste buds of our esteemed customers and consistent with our pledge to provide Best products and exciting choices at all times. We have recently introduced a new variant called Best Honey Cream Liqueur made from soothing and comforting honey flavor which can be served chilled or with ice,” a statement…

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KWAL to invest US$30m in new manufacturing facility to expand operations

KENYA – Kenya Wine Agencies Limited (KWAL), leading wines and spirits manufacturer in Kenya, has unveiled plans of investing more than US$30 million (Ksh 3 billion) in a new state-of-the-art production plant. The investment is part of the company’s expansion plan as it seeks to consolidate its market share in the region’s alcoholic beverage market. Speaking while commemorating the company’s 50 years of presence in Kenya, Ms. Lina Githuka, KWAL Managing Director, unveiled that the facility will be located in Tatu City with plans of breaking ground in 2020. “Our…

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KWAL unveils new ciders production line to grow market share

KENYA – The Kenya Wines Agency Limited (KWAL) has launched a new production line for the local manufacture of ciders as it seeks to expand into the growing alcoholic beverage sector in the country. The launch, which comes at a time when the firm is celebrating 50 years in the alcohol manufacturing business, will initially major in production of the ‘Hunters Gold’ cider. “As we celebrate 50 years of being in business, our focus is on business expansion as well as growth in market share across all the products in…

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Distell unveils Africa expansion strategy targeting Ethiopia, Zimbabwe and Nigeria

SOUTH AFRICA – Distell Group Limited has unveiled its expansion strategy on the continent with plans to increase investments in Ethiopia, Zimbabwe and Nigeria across its wine, spirits and ready-to-drink categories. According to report by Business Day, Richard Rushton, chief executive at Distell revealed that the group is constantly reviewing opportunities for investments in new African markets. “Ethiopia is a big market that, along with Zimbabwe and Nigeria, is on our radar screen. But East Africa is a central part of our growth plan,” Richard said. The liquor group has…

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Distell, Heineken, Pernod Ricard, others enter into good business practice agreement

SOUTH AFRICA – South Africa’s alcoholic beverage manufacturers have signed an agreement with the government on good business practices in a bid to improve the business environment, reports Business Report. Among the companies who signed the guidelines for good business practices include Distell, Heineken, Diageo, Pernod Ricard, SALBA and Vinpro.  According to Dr Rob Davies, trade and industry minister, the guidelines will inter alia build mutual confidence, trust and benefit for the companies and the societies in which they operate across the continent. “They are a voluntary set of principles…

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Wine producer Distell selects WPP as global partner agency

SOUTH AFRICA – South Africa based wine and spirit producer, Distell Group limited, has selected WPP’s Team Liquid, a global holding company, to manage the full spectrum of its marketing communications on its global portfolio of brands. WPP, a British multinational advertising and public relations company will be responsible for seven of Distell’s most prestigious global brands, including Savanna, Hunter’s, Hunter’s Edge, Amarula, Scottish Leader, Bain’s and Viceroy. Delivered by Team Liquid – WPP’s agency solution for Distell – the portfolio will cover strategy, creative, digital, social, media, public relations,…

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Distell to distribute and market cannabis lager for Poison City Brewing

SOUTH AFRICA – Africa’s leading spirits and wines producer, Distell Group has agreed to distribute and market cannabis-infused beer, the country’s first made by Poison City Brewing. The distribution support agreement will see Distell, which do not have beers in its portfolio distribute and sell the cannabis lager, which has received backing from RCL Foods CEO Miles Dally and Spar CEO Graham O’Connor. Poison City Brewing said it started selling its lager containing hemp- made with cannabis sativa as an ingredient in September to become the first in the country.…

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Distell records flat group revenue on single-digit volume decline

SOUTH AFRICA – Distell Group, Africa’s leading wines and spirits company has said revenue for the three months ended 30 September 2018 was flat due to single-digit volume declines compared to the prior year, reports Business Day. The period has experienced a surge in excise duties which have not only affected revenues but also sales volumes as the taxes are finally passed to the final consumer. According to Opportune Investments CEO Chris Logan, excise duties as a percentage of total revenue have lifted from 18.8% in 2001 to 26.4% in…

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