Spirits of Excellence: Distell’s Rise To The Top

Distell Group is Africa’s leading producer and marketer of spirits, wines, ciders and ready-to-drink beverages(RTDs), sold all over the world. The company employs 4400+ people and has an annual turnover of R34.1 billion.

Some of the wines in the Distell’s portfolio have their origins in the late 17th century, when many French Huguenots settled in Cape Town. Others were established later by Dutch and Italian immigrants. Similarly, many of the company’s brandies have their roots in the British occupation of the Cape during the 18th century.

Distell was established after the merger of Stellenbosch Farmers’ Winery (SFW) and Distillers Corporation in the year 2000. The name ‘Distell,’ constitutes 3 letters from Distillers and 4 letters from Stellenbosch merged together.

STELLENBOSCH FARMERS’ WINERY

SFW was launched in 1925 by Dr William Charles Winshaw, who remained managing director of the company until his retirement in 1962. The company produced and distributed wine, spirits, and non-alcoholic beverages through retail outlets in South Africa and across the world.

SFW was listed on the Johannesburg Stock Exchange in 1956, and played a big role in developing the production and sale of cider in the country.

DISTILLERS CORPORATION

Distillers Corporation was founded in 1945 by Anton Rupert, the father of South Africa’s current richest man, Johann Rupert.

The company quickly expanded and formed marketing relationships in the wine and spirits industry. Distillers 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.

Anton was responsible for instigating the ‘Bergkelder concept,’ a marketing innovation that invited independent wine estates to make use of Distillers’ bottling, sales and marketing expertise.

Distillers Corporation was listed on JSE, and created a new African icon, Amarula, which went on to become one of the top-selling cream liqueurs in the world.

DISTELL

Distell

In December 2000, Distillers’ Corporation and Stellenbosch Farmers Winery merged together to form Distell. The merger was made possible because both firms had a similar shareholding structure.

The structure permitted the merger not to have any diluting effect on major shareholders’ effective interest in the new merged entity. Distell Group’s shares began trading on JSE in March 2001 under the symbol DST.

HEINEKEN ACQUISITION

In November 2021, Heineken announced a plan to buy Distell Group for R40 billion, in order to become the market-leading alcoholic beverage supplier in South Africa.

The takeover was approved by The SA Competition Commission in September 2022, under condition that it sells its cider brand Strongbow in a manner that promotes transformation.

Heineken agreed to the terms and the acquisition has since been official.

About the author

Morris Masipa

Morris Masipa

Morris Masipa is the founder and content strategist behind Entrepreneur Hub SA, a dynamic business blog he launched in 2021. With a passion for supporting South African entrepreneurs, Morris aims to inspire and inform readers while celebrating the innovative spirit of the local business community.

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