AS it steps up its focus on the US market, Distell is to strengthen its ties with US wine and spirits importer AV Brands, it was announced by Don Gallow, who heads the Stellenbosch-based producer’s international operations.
The closer relationship means that in addition to representing two of Distell’s global lifestyle wine brands Two Oceans and Obikwa, AV Brands is to carry Amarula Cream Liqueur and Durbanville Hills, formerly with the company Brown-Forman.
Based in Columbia, Maryland, AV Brands currently sells over a million cases of international brands a year, including famous sherry brand Tio Pepe, as well as a range of wines from Spain, Italy, Argentina and Chile. Amongst the high-profile brands it represents are Luna di Luna (Italy), Caliterra (Chile), and Quara (Argentina).
The importer/distributor, one of the top 20 in the US in terms of turnover, was recently acquired in a multi-million US dollar deal by the Cordoniu Group of Spain, producers of 11 still and sparkling wine brands in Spain, Argentina and California.
Distell’s move comes in the wake of AV Brands’ success with Two Oceans, which it has succeeded in listing with several leading grocers’ chains in the US.
These include Hyvee, with 220 stores in the mid-west; Fortune 500 chain Publix in 200 of its stores, mostly located in the south; and 500 Food Lion stores in the south and mid-Atlantic.
Says Gallow: “AV Brands has rapidly developed the Two Oceans footprint across the US. We believe it has the potential to do the same with the additional two brands, particularly given its new leadership that enjoys an excellent reputation in major brand building.”
AV’s president, Roy Danis, previously of WJ Deutsch & Sons, was closely involved in the success of the Australian brand Yellow Tail, now the biggest imported wine label in the US, selling 10 million cases annually.
“We believe there is a comfortable fit between our two organisations,” Gallow adds.
“AV Brands has always said it doesn’t aim to be the biggest marketing company, but one of the best, focusing on the organic growth of its current trading partners, while acquiring prestigious new brands. That Amarula and Durbanville Hills are regarded as strategic additions to its portfolio, is affirmation of the attraction these brands hold.”
Says Roy Danis, AV Brands president: “We are proud to represent more of Distell’s portfolio in the US, strengthening the relationship between our two companies and our long-term commitment to each other.
“We believe both Amarula Cream and Durbanville Hills have great potential in the US and we shall continue to build on the strong foundation started by Brown Forman.”
Amarula is South Africa’s biggest international liquor brand with an extensive global reach. It is the second biggest liqueur of its kind globally.
Durbanville Hills is one of South Africa’s leading wine brands and its Sauvignons Blanc are among the top sellers in the country.
The two were formerly distributed in the US by BrownForman.
Gallow says Amarula will have a dedicated marketing team to advance the brand’s presence in the US. However, duty- free sales will be handled directly by Distell.
Durbanville Hills will be carried by Paragon Vintners in the UK.
Distell was recently listed as the world’s tenth biggest wine marketer by international beverage data specialists Impact Databank.
