BREEZY ‘RTD’ SHOWING
INTERIM RESULTS for liquor group Distell show just how important the ready-to-drink (RTD) brands have become in a portfolio that for so long was built on traditional brands such as Klipdrift, Fleur du Cap, Richelieu and Oude Meester.
Though initially dismissed as a novelty, the low alcohol RTDs (or alco-pops) have not only helped counter the growth in the beer market but also added impetus to Distell’s turnover in some rather tough trading times for the wine sector.
Interim figures show Distell’s sales volumes in the SA market growing almost 12%. Spirits (including brandy) volumes increased almost 4% and wine 4,6% – but RTD sales volumes were up 25,5%.
In the year to end-June 2006, RTDs generated just over R1bn in revenue for Distell, compared with R1,9bn for wine and R2,8bn for spirits. With that strong growth achieved by RTDs in the interim period, it may not be amiss to speculate that this vibrant category could account for as much as 20% of Distell’s total revenue by year-end.
RTDs accounted for just under 15% of turnover in the 2006 financial year.
Distell also continues to see encouraging export revenues from its Amarula Cream liquor brand, which managed growth of 33,4% in the interim period. Amarula is SA’s most widely distributed liquor
Bacardi Breezer – ‘a sales