BREEZY ‘RTD’ SHOW­ING

Finweek English Edition - - Cover - MARC HASENFUSS

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

brand in­ter­na­tion­ally.

Bac­ardi Breezer – ‘a sales

blast’

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