Distell Group Limited

Last updated

Distell Group Limited
Type Public limited company
JSE: DGH
IndustryBrewing, Beverage
PredecessorStellenbosch Farmers' Winery
Distillers Corporation
Founded4 December 2000;23 years ago (2000-12-04) through Merger
Founder William Charles Winshaw
SFW's Founder
Anton Rupert
Distillers Corp's Founder
DefunctApril 26, 2023;7 months ago (2023-04-26)
Fate Carved-out
Successor
Headquarters Stellenbosch, South Africa
Key people
Richard Rushton - CEO
Revenue ZAR 17.7 Billion (2014) [1] The shareholding as at 31 March 2014 is shown below: [2]
ZAR 1.5 Billion
Total assets ZAR 15.9 Billion (2014)
Number of employees
5,300 (2014)
Website www.distell.co.za

Distell Group Limited, commonly referred to as Distell, was a multinational brewing and beverage company, based in South Africa. On April 26, 2023, Distell was acquired by Heineken. [3]

Contents

After that, its operations were integrated into Heineken Beverages, a company created by the merger of its South African unit, Distell, and another African brewery acquired by the Dutch multinational Namibia Breweries. [4]

Overview

Distell Group Limited is a producer and marketer of spirits, fine wines, ciders and ready-to-drinks. The group's headquarters are in Stellenbosch, South Africa. [5]

As at February 2014, Distell had 5,300 employees worldwide and an annual turnover of ZAR 17.7 Billion.

History

Distell Group Limited traces its roots to two major alcoholic beverage companies in South Africa, Stellenbosch Farmers' Winery (SFW) and Distillers Corporation, that merged on 4 December 2000. [6]

Merger

Stellenbosch Farmers' Winery

Stellenbosch Farmers Winery Group (SFW) the founder member of Distell Group was formed in 1925 by William Charles Winshaw, an American medical doctor. [7] As at the year 2000, SFW produced and distributed wine and spirits as well as non-alcoholic beverages through retail outlets South Africa and across the world. [8]

In 1956 Stellenbosch Farmers Winery Ltd was listed on the Johannesburg Stock Exchange. [9]

Distillers Corporation

Distillers Corporation was formed in 1945 by Anton Rupert. Distillers expanded energetically and very quickly set up marketing relationships and partnerships in the wine and spirits industry. The company became a major producer, focusing on distillates and in particular on the brandy market that it developed from relative obscurity to its current level of prominence. It is renowned for its Bergkelder concept, a marketing innovation that invited wine estates to make use of Distillers' bottling, sales and marketing expertise. In addition, it created a new African icon, Amarula Cream, which is one of the top-selling cream liqueurs in the world. [7]

Distillers Corporation was also listed on the JSE.

Merger transaction

On 20 September 2000, Distillers' Corporation and Stellenbosch Farmers Winery directors announced the merger of the two firms. The merger was made possible because both firms had a similar shareholding structure i.e. [10]

  • Remgro-KWV Investments – 60% of Distillers' Corporation and a similar stake in SFW.
  • Other Beverages Industries (Pty) Ltd – 30% of Distillers' Corporation and a similar stake in SFW. Other Beverage Interests Proprietary Limited is a wholly owned subsidiary of SABMiller.
  • Public via The JSE – 10%

This structure allowed the merger not to have any diluting effect on the lead shareholders' effective interest in the merged entity. [11]

On 4 December 2000, the management announced the conclusion of the merger. The newly formed entity was known as Distell from the names of the two constituent companies. [6] [12]

Distell Group's shares began trading on the Johannesburg Stock Exchange on 19 March 2001 under the symbol DST. [6]

Post merger

In April 2013 Distell bought Scotch whisky company Burn Stewart Distillers from CL Financial for £160m. [13]

Following its acquisition of SABMiller, [14] Anheuser-Busch InBev announced that it would sell its 26.4% acquired state in Distell Group to Public Investment Corporation. [15]

Announced acquisition

On 15 November 2021, Heineken announced a plan to buy Distell Group, in order to become the market-leading alcoholic beverage supplier in South Africa. The takeovers would be the first major deal for Heineken’s CEO and chairman of the executive board Dolf van den Brink, who took charge at Heineken in June 2020. [16] The acquisition was completed in 2023 [17]

Ownership

The stock of Distell Group Limited is listed on the JSE, where it trades under the symbol: DST. As of June 2015 shareholding in the group's stock is as depicted in the table below: [18]

Distell Group Limited Stock Ownership
RankName of OwnerPercentage Ownership
1Remgro-Capevin Investments Proprietary Limited53.00
2Other Beverage Interests Proprietary Limited26.50
3Others via the JSE20.50
Total100.00


Brands

Distell's major brands include: [20]

Spirit portfolio

  • Klipdrift Export
  • Richelieu
  • Viceroy
  • Mellow-Wood
  • Oude Meester VSOB
  • Commando
  • Richelieu XO
  • Underberg
  • Gordon's Gin (exclusive rights for South Africa)
  • Amarula
  • Nachtmusik
  • Oude Meester Peppermint & Ginger Liqueurs
  • Flight of the Fish Eagle
  • Klipdrift Premium
  • Van Ryn’s 10, 12, 15 and 20 year old collection
  • Oude Meester Reserve
  • Klipdrift Gold
  • Nederburg Potstill Solera Brandy
  • Collison's White Gold
  • Richelieu 10
  • Bain's Cape Mountain Whisky
  • Black Bottle blended Scotch whisky
  • Bunnahabhain Islay single malt Scotch whisky
  • Deanston single malt Scotch whisky
  • Harrier
  • Knights
  • Ledaig single malt Scotch whisky
  • Scottish Leader
  • Three Ships
  • Tobermory single malt Scotch whisky
  • Mainstay
  • Seven Seas
  • Amarula Gold

Wine portfolio

  • Nederburg
  • 4th Street
  • 5th Avenue
  • Cellar Cask
  • Chateau Libertas
  • Drostdy-Hof
  • Graça
  • Grand Mousseux
  • Grunberger
  • JC Le Roux
  • Obikwa
  • Peche Royale
  • Two Oceans
  • Alaska
  • Brandyale
  • Castle Brand
  • Clubman
  • Copperband
  • Delgado Supremo
  • Mokador
  • Vincoco
  • Zorba
  • Autumn Harvest Crackling
  • Capenheimer
  • Kellerprinz
  • Oom Tas
  • Overmeer
  • Paarle Perle
  • Ship Sherry
  • Sedgwicks Old Brown
  • Tassenberg
  • Taverna Rouge
  • Witzenberg Stein
  • Allesverloren
  • Durbanville Hills
  • Flat Roof Manor
  • Fleur du Cap
  • Hill & Dale
  • Jacobsdal
  • Lomond
  • Monis
  • Neethlingshof
  • Place in the Sun
  • Plaisir de Merle
  • Pongracz
  • RED ESCape
  • Theuniskraal
  • Tukulu
  • Uitkyk
  • Zonnebloem

Cider and ready to drink

  • Ciders
  • Hunters Dry
  • Hunter Gold
  • Savanna Dry
  • Savanna Light
  • Savanna Loco
  • Bernini
  • Esprit
  • Hunters Extreme
  • Klipdrift & Cola
  • Hunters Edge
  • 4th Street

See also

Related Research Articles

<span class="mw-page-title-main">Diageo</span> Multinational alcoholic beverages company

Diageo plc is a British multinational alcoholic beverage company, with its headquarters in London, England. It operates from 132 sites around the world. It is a major distributor of Scotch whisky and other spirits. Distilleries owned by Diageo produce 40% of all Scotch whisky with over 24 brands, such as Johnnie Walker, J&B and Old Parr.

<span class="mw-page-title-main">South African Breweries</span> Brewing company based in Johannesburg, South Africa

South African Breweries is a major brewery headquartered in Johannesburg, South Africa and was a wholly owned subsidiary of SABMiller until its interests were sold to Anheuser-Busch InBev on 10 October 2016. South African Breweries is now a direct subsidiary of Anheuser-Busch InBev SA/NV.

<span class="mw-page-title-main">SABMiller</span> Multinational brewing and beverage company

SABMiller plc was a South African multinational brewing and beverage company headquartered in Woking, England on the outskirts of London until 10 October 2016 when it was acquired by AB InBev. Prior to that date, it was the world's second-largest brewer measured by revenues and was also a major bottler of Coca-Cola. Its brands included Foster's, Miller, and Pilsner Urquell. It operated in 80 countries worldwide and in 2009 sold around 21 billion litres of beverages. Since 10 October 2016, SABMiller is a business division of AB InBev, a Belgian multinational corporation with headquarters in Leuven.

<span class="mw-page-title-main">Glenmorangie distillery</span> Whisky distillery in Tain, Scotland

Glenmorangie distillery is a distillery in Tain, Ross-shire, Scotland, that produces single malt Scotch whisky.

<span class="mw-page-title-main">Anton Rupert</span> South African businessman (1916–2006)

Anthony Edward Rupert OMSG was a South African businessman, philanthropist, and conservationist.

Beer in Africa, especially lager, is produced commercially in most African countries, and indigenous people also make varieties of beer. Beer is served in various locales, from neighbourhood shebeens to upscale bars. Many countries have standardized beer bottle sizes, which are cleaned and re-used, so when buying beer at a store, people often must pay a deposit on the bottle and the price of the beer. An alternative to glass-bottle beers is local beer sold in tetra-pak style paper cartons.

<span class="mw-page-title-main">Namibia Breweries Limited</span> Namibian brewery

Namibia Breweries Limited (NBL) is a brewery founded in 1920 and based in Windhoek, Namibia. On April 26, 2023, Heineken announced that it had completed the purchase of NBL.

<span class="mw-page-title-main">East African Breweries</span> Kenyan based alcoholic beverages holding company

East African Breweries Limited, commonly referred to as EABL, is a Kenyan-based holding company that manufactures branded beer, spirits, and non-alcoholic beverages.

<span class="mw-page-title-main">William Charles Winshaw</span>

William Charles Winshaw (1871-1968), was an American physician who created Stellenbosch Farmer's Winery (SFW) in South Africa in 1935. He was born in Kentucky, USA on 21 November 1871 and died in South Africa on 11 March 1968. He also co-owned the Oude Libertas vineyard there and produced Lieberstein, a dry white wine. He was married to Ada Charlotte (Day) and Susan Valerie

<span class="mw-page-title-main">African Distillers</span> Zimbabwean producer of alcoholic beverages

African Distillers is a company in Zimbabwe. It is one of the largest producers of alcoholic beverages, primarily distilled spirits and wines, in Zimbabwe.

<span class="mw-page-title-main">Indian whisky</span> Type of distilled liquor produced in India

As of 2006 most distilled spirits labelled as "whisky" in India were a form of Indian-made foreign liquor, commonly blends based on neutral spirits that are distilled from fermented molasses with only a small portion consisting of traditional malt whisky, usually about 10 to 12 percent. Outside India, such a drink would more likely be labelled a rum. According to the Scotch Whisky Association's 2013 annual report, unlike in the European Union (EU), "there is no compulsory definition of whisky in India, and the Indian voluntary standard does not require whisky to be distilled from cereals or to be matured. Very little Indian 'whisky' qualifies as whisky in the EU owing to the use of molasses or neutral alcohol, limited maturation and the use of flavourings. Such spirits are, of course, considerably cheaper to produce than genuine whisky." Such molasses-based blends made up 90 percent of the spirits consumed as "whisky" in India in 2004, although whisky wholly distilled from malt and other grains, was also manufactured and sold. By 2004 shortages of wheat had been overcome and India was one of the largest producers. Amrut, the first single malt whisky produced in India, was launched in Glasgow, Scotland in 2004. After expanding in Europe it was launched in India in 2010.

Three Ships is a brand of whisky distilled at the James Sedgwick distillery in Wellington, Western Cape, South Africa. The distillery produces both malt and grain whiskies on the same site, which is unusual for whisky distilleries. The Three Ships range includes blended and single malt whiskies. Three Ships is owned by Distell, a multinational brewing and beverage company based in South Africa.

<span class="mw-page-title-main">BenRiach distillery</span> Scotch whisky distillery in Scotland

BenRiachdistillery is a single malt Scotch whisky distillery in the Speyside area of Scotland. It is currently owned by Brown-Forman Corporation.

<span class="mw-page-title-main">Tobermory distillery</span> Whisky distillery in Argyll and Bute, Scotland, UK

Tobermory distillery is a Scotch whisky distillery situated on the Hebridean island of Mull, Scotland in the town of Tobermory.

<span class="mw-page-title-main">Fleur du Cap Theatre Awards</span> Annual South African theatre awards

The Fleur du Cap Theatre Awards are a set of annual awards that recognize excellence in professional theatrical productions held within the vicinity of Cape Town, South Africa. These awards encompass 20 categories in total.

<span class="mw-page-title-main">Tanzania Breweries Limited</span>

Tanzania Breweries Limited, also referred to as TBL, is the oldest and largest brewing company in Tanzania.

Kenya Wine Agencies Limited (KWAL), is a first line manufacturer, importer and distributor of wine, spirits and non-alcoholic beverages

Remgro Limited is an investment holding company based in Stellenbosch, South Africa. It has interests in banking, financial services, packaging, glass products, medical services, mining, petroleum, beverage, food and personal care products. In 2015, Forbes listed Remgro as the 9th biggest publicly traded company in South Africa and 1436th in the world.

Bain's Cape Mountain is a South African brand of whisky distilled at the James Sedgwick distillery in Wellington, Western Cape. Launched in 2009, Bain's is South Africa's first whisky produced from a single grain, being made from 100% South African-grown yellow maize (corn). Bain's is owned by Distell, a multinational brewing and beverage company based in Stellenbosch, South Africa. Bain's is named after Andrew Geddes Bain, who built the Bainskloof Pass that connects the town of Wellington, where the distillery is located, to the interior of the country in 1853.

Heineken Beverages, formerly known as Sunside Acquisitions Limited, is a special-purpose vehicle set up by Heineken to house its Southern and Eastern African assets alongside the bulk of the Distell business.

References

  1. Brownlee, Julie (30 April 2014). "About the company: Distell Group Ltd [JSE:DST]". FSP Invest. Retrieved 2 November 2014.
  2. "Distell Group 2014 Annual Report" (PDF). Distell Group Limited. 31 March 2014. Retrieved 3 November 2014.
  3. "HEINEKEN successfully completes acquisition of Distell and Namibia Breweries to create HEINEKEN Beverages". Heineken N.V. Retrieved 24 July 2023.
  4. "Our Profile". Heineken Beverages. Retrieved 24 July 2023.
  5. "Distell Contacts". Distell Group Limited. Retrieved 2 November 2014.
  6. 1 2 3 Cassie du Plessis, Henry Hopkins (1 May 2011). "JSE listing for Distell". WineLand. Archived from the original on 2 November 2014. Retrieved 2 November 2014.
  7. 1 2 "Distell History". Distell Group Limited. Retrieved 3 November 2014.
  8. "Stellenbosch Farmers Winery Group Ltd". Bloomberg LLP. Retrieved 3 November 2014.
  9. "Modern day History Timeline of Stellenbosch". ShowMe™. Retrieved 3 November 2014.
  10. "Case No: 08/LM/Feb02 - Merger between Distillers Corporation (SA) Limited and Stellenbosch Farmers Winery Group Ltd" (PDF). Competition Tribunal, Republic of South Africa. 13 March 2003. Retrieved 3 November 2011.
  11. "Remgro Group 2001 Annual Report" (PDF). Remgro Group. 31 March 2001. Retrieved 3 November 2014.
  12. Kirkby, Arnold (5 December 2000). "SOUTH AFRICA: Distillers' Corporation + Stellenbosch Farmers Winery = Distell". just-drinks.com. Aroq Limited. Retrieved 3 November 2014.
  13. BBC News
  14. Mickle, Tripp (28 September 2016). "SABMiller, AB InBev Shareholders Approve $100 Billion-Plus Merger". Wall Street Journal. ISSN   0099-9660 . Retrieved 29 September 2016.
  15. Bonorchis, Renee; Loni, Prinsloo (15 December 2016). "AB InBev to Sell Stake in Distell to South African Fund PIC". Bloomberg Businessweek . Bloomberg L.P. Retrieved 22 December 2016.
  16. Philip Blenkinsop and Promit Mukherjee, Heineken to buy South Africa's Distell and Namibian Breweries at: Reuters
  17. "Heineken completes Distell and Namibia Breweries acquisition". 27 April 2023.
  18. "Distell Group 2015 Annual Report" (PDF). Distell Group Limited. 30 June 2015. Retrieved 13 January 2016.
  19. "Capevin Holdings Limited 2014 Annual Report" (PDF). Capevin Holdings Limited. 30 June 2014. Retrieved 3 November 2014.
  20. "Distell Group Brands". Distell Group Limited. Retrieved 2 November 2014.