Wine marketing company fails
2007-04-12
SHORTLY after removing the huge billboard erected illegally next to the N1 between Paarl and Klapmuts to advertise its brand Matuba, Cape Coastal Vintners has been liquidated.
An application for the liquidation of the company was granted in the Cape High Court last week.
The company was a partnership formed in 2004, between Boland, Bovlei, Wamakersvallei, Wellington and Riebeek wineries with Strategy Partners.
They focused on establishing South African brands and rationalising their export interests.
Chairman Johann Pieterse announced recently that a majority share had been acquired in the US importer Hemingway & Hale.
Cape Coastal Vintners launched the Matuba wine brand in a square bottle and erected the huge billboard earlier this year, but removed it two weeks ago under pressure from the National Roads Agency.
The sign infringed the regulations for signage along national roads in rural areas and the company was faced by prosecution if they did not remove it voluntarily.
In December Spier Wines, formerly known as Winecorp, announed that it had transferred its non-core assets and the Winecorp name to Cape Coastal Vintners.
Under an agreement signed on 7 December, all non-core brands and inventory would be traded under Cape Coastal Vintners’ newly formed subsidiary Winecorp, including the wine brand Dumisani.
Bottling and warehousing was to be shared by the two groups.
The failure of Cape Coastal Vintners is blamed on factors such as the worldwide wine surplus, strong competition in foreign markets, agricultural subsidies to developed co
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