Q&A with KWV CEO John Loomes

by | Sep 1, 2024 | Newsletter Subscribers

This year, KWV claimed no fewer than three Double Gold medals in the competitive Brandy category at the International Spirits Challenge (ISC). Only six Double Gold medals for brandy were awarded to producers globally, and KWV was the only producer from South Africa to achieve this mark of excellence. KWV’s CEO John Loomes knows something about the secret behind this success.

KWV CEO John Loomes.

KWV CEO John Loomes.

 

What’s behind the consistent performance of South African brandies on the world stage?

South African Brandy is held to some of the most stringent criteria globally, ensuring that only the finest products bear the name. KWV, as the most awarded brandy producer in South Africa and worldwide, attributes our success to a meticulous process that begins with sourcing the highest quality wine for distillation. This dedication extends to our use of well-aged, valuable potstills, which are expertly blended by our master distillers. The consistency of our brandy’s performance on the global stage is a testament to these uncompromising standards and our commitment to excellence.

While KWV brandies are already known for their exceptional quality, we continuously seek to innovate and push the boundaries of what is possible in brandy production. Our access to aged and valuable reserves allows us to experiment with new and unique products, such as our Single Varietal Potstill Brandy made exclusively from Pinotage grapes. Innovation is at the heart of our approach, enabling us to create new categories and expand into untapped markets. This commitment to innovation ensures that we not only maintain our high standards but also keep the brandy category dynamic and exciting for consumers.

 

What is the biggest challenge to the perception of South African brandies locally?

One of the biggest challenges facing South African brandies is the deeply ingrained perception and prestige associated with Cognac, which has been effectively marketed as a symbol of luxury and status for centuries. Cognac’s historical legacy and strong branding create a formidable competitor, making it appear superior to South African brandies in the eyes of many consumers.

At KWV, we have taken strategic steps to counter this by educating both consumers and the trade about the exceptional quality and heritage of South African Potstill Brandy, which rivals that of Cognac. Our recent launch of KWV VS (Very Special) is part of this effort, aligning our brandy portfolio more closely with Cognac while highlighting the unique qualities of our products. The multiple global awards won by KWV Brandy, including our unprecedented victories over Cognac in international competitions, have demonstrated our brandy’s world-class status and helped to shift perceptions.

Our challenge now is to continue reinforcing the message that South African Potstill Brandy is not only on par with but can surpass Cognac in quality, especially in emerging markets where the rising costs of Cognac present an opportunity for South African brandies to shine.

 

How can the wine and brandy categories support and strengthen one another?

Wine and brandy are intrinsically linked, as brandy is derived from wine grapes. This connection provides a unique opportunity for these two categories to reinforce each other commercially. The quality of the wine directly influences the quality of the brandy, and success in either category elevates the overall perception of KWV as a producer of premium beverages.

At KWV, we’ve observed that a strong reputation in one category often leads to increased interest in the other. For example, our award-winning brandies have sparked curiosity about our wines, and vice versa. This synergy is particularly important for South African Brandy, as we can leverage the growing global interest in South African wines to enhance the visibility and prestige of our brandies. By creating a unified premium brand image across both categories, we can drive the premiumisation of our wines and brandies alike.

KWV’s diverse portfolio, ranging from accessible options like KWV 3 to premium offerings such as The Mentors wine range and our high-end brandies, allows us to reach a broad audience. By identifying and segmenting our consumers, we can tailor our messaging to resonate with different market segments. This strategic approach helps us maximise the impact of our products across both the wine and brandy categories, ultimately strengthening our brand’s position in the market.

Globally, we have also noticed a trend where consumers are drinking less but choosing higher-quality, premium products when they do. This shift is also accompanied by a growing desire to celebrate everyday moments, rather than waiting for special occasions to open a fine bottle of wine or spirits. This trend has particularly boosted sales in categories like sparkling wines, showing how evolving consumer preferences can influence market dynamics across different segments. By understanding and responding to this mindset, brands can effectively position their premium offerings to resonate with these changing consumer behaviours – whether in wine or brandy.

 

Where does KWV see South African Brandy going in the future?

KWV is committed to premiumising the South African Brandy category and building a portfolio that appeals to a wide range of consumers, from entry-level to super-premium. Our strategy is focused on establishing trust through exceptional quality, heritage, and value. We are playing the long game, steadily gaining ground in key markets and positioning KWV Potstill BrandIies as credible competitors to Cognac on the global stage.

As we continue to innovate and expand our offerings, we are confident that South African Potstill Brandy will grow in prominence. The launch of KWV VS in 2023, alongside our international-focused KWV XO, highlights our dedication to aligning with Cognac’s standards while showcasing the unique qualities of our brandies. With Africa emerging as a promising market, and the rising costs of Cognac making our premium yet affordable brandies more attractive, KWV is well-positioned to capture a larger share of the market and lead the charge in redefining the global brandy landscape.

 

What innovations have been taking place in the KWV Brandy cellars and how does this reflect KWV’s overall growth strategy in wine and spirits?

Our focus on innovation is central to our growth strategy. By continually refining our blending techniques, experimenting with new grape varietals like Pinotage for brandy production, and launching products that resonate with modern consumers, we ensure that KWV remains at the forefront of both the wine and spirits industries. This approach not only strengthens our brandy portfolio but also aligns with our broader goal of strategic growth journey.

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