|
putting you in touch with the SA wine industry community
|
|
PREVIOUS WINELAND ARTICLES | WINELAND HOME
Distell's single global market drive
by Henry Hopkins
The wine portfolio has been streamlined to eliminate unnecessary complexity and duplication. At the same time, Distell wines are selling increasingly in multiple grocers across Europe and new opportunities are opening up all the time.
Marketing specialist leads Distell's international operations
Distell's newly appointed international operations director, Etienne Heyns, comes with an impressive marketing pedigree.
Prior to a short stint as CEO of a strategic communication consultancy, Heyns was channel director of TV pay-channel M-Net. He was also the man who launched the immensely successful M-Net Face of Africa promotion, as the channel's director of marketing, strategy and development for the entire African continent.
Now, having succeeded in bringing subscription TV to the viewers of Africa, his new task is to deliver Distell's key brands to consumers worldwide.
His colleague, Don Gallow, group general manager of international operations with responsibility for markets in Europe, America and Asia, explains that their department is responsible for establishing and implementing marketing strategy for Distell's products abroad. They appoint agents worldwide and, in certain instances, also manage direct distribution to retailers.
Gallow, with eight years of international expertise under his belt, had the onerous task last year of consolidating agency networks following the merger of Stellenbosch Farmers' Winery and Distillers' Corporation to create Distell. This meant redefining agency relationships and aligning Distell's portfolio to optimise marketing opportunities.
Heyns says forecasting the needs of overseas customers has "become very aggressive" and that the company has invested substantially in production to meet growing demand.
"After a recent visit to the London Wine & Spirits Fair, I was greatly encouraged by the surging international interest in South African brands," he says. And his sanguine approach is borne out by the recent listing with the UK supermarket chain Asda, a member of US retail giant Wal-Mart, which will see Two Oceans wines on shelves from October.
"Our major challenge is to manage growth responsibly, where we service all our markets optimally. And for that reason, our biggest investment has been in people, which is why the marketing department team with whom we work in close tandem, has been expanded."
Although Gallow cautions that the US is a complex market given its three-tier system of importer, distributor and retailer, he is confident of penetrating this very lucrative arena.
He points to the significant success of Amarula Cream Liqueur, represented by agents Brown Forman. Launched in February, a mere six months later it is being sold in every US state.
"And Amarula's performance, coupled with Distell's reputation for quality and capacity to deliver, bodes well for our wine portfolio."
A lean and mean business machine
The walls of Kim Green's office are adorned with 125 Napa wine labels and over 100 Australian labels. But it is spartanly furnished; a filing cabinet, desk with ashtray, ordinary office chair (with a pillow for marathon sessions on the telephone), a small conference table with four hard chairs, and, as a kind of consolation and reminder that she is operating from South Africa's premier wine region, a beautiful view of the Eerste River.
Focus and know thy enemy, it would seem. And transform yourself into a lean and mean business machine.
Green, now Distells' marketing manager: global wines, returned to the fold after valuable years as MD of the South African Wine and Spirit Exporters' Association and now leads a single, restructured 30 member wine marketing team that includes six newcomers to the industry, adding fresh insights and approaches to irreplaceable experience.
Reporting directly to Green are new appointees Peter Hafner (group brand manager, global wines) and Carina Gous (group brand manager, global boutique wines), as well as the experienced Rudi du Toit (group brand manager, local, including Botswana, Lesotho, Namibia and Swaziland wines and De Bruyn Steenkamp (brand manager, buyers' own brands). Jean van Niekerk is the marketing co-ordination manager and Clive Torr the wine public relations manager.
Given South Africa's growing reputation for quality and value and 2,55 billion cases sold throughout the world last year, Distell's marketing thrust has been turned to the export market, especially the mainstream sector ruled by supermarkets, now accounting for as much as 70% of total off-consumption sales in some European countries.
"We no longer produce wines for the domestic market and then for an amorphous export market, but for a single, global market that includes South Africa," Green explains.
In addition to South Africa, the focus is on the UK, Germany and the US as primary target markets, followed by Ireland, the Netherlands, Belgium, Denmark, Sweden and Canada. In all these countries Distell is concentrating on the premium (£3 to £5) and super premium (£5 to £7) sectors. Green says research conducted on behalf of the company, as well as the observation of international trends, indicated that these segments showed the best growth potential.
She stresses that the boutique wines remain critically important to the company in promoting its image, but that the bulk of sales will come from mainstream brands, structured to deliver consistent premium quality.
To succeed in meeting growing demand, Linley Schultz, the Australian winemaker who now oversees the company's 25 winemakers, is spearheading a drive to build a portfolio of global bands.
The team is also working with growers to cater to international consumer preferences - where the demand for Shiraz, Cabernet Sauvignon and Cabernet-based blends, as well as Chardonnay, is continuing unabated.
"Instead of launching new brands on an ad hoc basis, we will start developing some products for specific markets or market segments," Schultz adds.
As group brand manager for global wines, Peter Hafner has a portfolio that includes drive brands such as Nederburg, Durbanville Hills, Fleur du Cap, Drostdy-Hof and the re-packaged Two Oceans range. He has a team of brand managers reporting to him on all local and international aspects of these brands.
Hafner, a trained attorney who specialised in commercial law and property finance, is also developing distance channel marketing strategies for the Distell wine brands, particularly through wine clubs worldwide. As a new member of the International Wine Clubs' Association, Distell has developed ties with Britain's Virgin Wines, the Wine Society and Wines Direct.
Virgin recently placed an order of several million rand for Distell's new Stone Gables range. It is the first Distell product designed specifically for an on-line marketer. Last year Virgin procured about 10% of its total of 150 00 cases from South Africa. This volume is expected to grow dramatically.
Carina Gous has been appointed group brand manager for Distell's boutique portfolio of 14 luxury labels. Trained as an industrial chemist, she worked for Somchem's marketing team before her new appointment, where she now looks after exports. She is also in charge of two brand managers, who handle local marketing of these products.
"The luxury category shows good growth on a global scale and we're working on market-driven strategies in the UK, Germany, Switzerland, Benelux countries, the USA and Canada. As not all our wines are equally well-known from country to country, we are concentrating on specific brands for specific markets. Alto, for instance, is perhaps the best-known brand in South Africa, while overseas clients may be more familiar with some of our other brands. We'll maintain our luxury positioning, but will be working on expanding volumes," she says.
Contributing to Distell's luxury segment are the Lusan Group (owned in conjunction with German banker Hans-Joachim Schreiber), that produces Le Bonheur, Uitkyk, Stellenzicht, Alto and Neethlingshof wines. The others are Allesverloren, Rietvallei, Fort Simon, Theuniskraal, Jacobsdal, Plaisir de Merle and Tukulu, an empowerment project at Papkuilsfontein near Darling that launched its first wine in 1999.
The very important task of servicing Distell's overseas multiple chain clients, has been allocated to newcomer De Bruyn Steenkamp who takes over this portfolio from Naas Erasmus. Many chains have dedicated labels and brands, such as African Sky, Libertas and Blouberg.
Guy Webber from the state-of-the-art cellar built at Stellenzicht in 1996 has created the new Hill&Dale range, consisting of a Cabernet Sauvignon, Chardonnay, Sauvignon Blanc and a Pinotage, is destined for international and local supermarkets.
Traditional favourites such as Graça, Chateau Libertas, Zonnebloem, Tassenberg, Grünberger, Autumn Harvest and the sparklers JC le Roux, Pongrãcz and Grand Mousseux, remain the responsibility of Rudi du Toit, a trained winemaker of 13 years' standing. Du Toit is assisted by a team of five.
Jean van Niekerk is co-ordinating manager responsible for liaison with foreign markets and agents.
As Distell's wine PRO, Clive Torr mainly develops new business, liaising with and educating consumers and Distell's on- and off-consumption customers.
|
|
Visit our sister sites:
 2009/10 Directory Now Available! Facts, figures, contact details and much more...
|
What outsiders could have mistaken for a lull after the merger of Distillers Corporation and SFW, the past two years have in fact been a phase of frenzied activity behind the scenes, exhaustive sessions with top international management consultants and a major reshaping of Distell's marketing strategies for both brandy and wine.
| UP |
COPYRIGHT (C) 2000 WineLand |