KWV International, the export subsidiary of KWV Ltd, one of South Africa’s largest producers of wine and spirits, has continued to see its export volumes grow in the first half of its financial year, but financially the strong rand is having a negative impact on the group, according to managing director Vernon Davis.
Writing in KWV International’s December newsletter, Davis said that as a result of the rand’s appreciation, the group was “adjusting its business accordingly”. For the first four months of the financial year (July to October), several of its export brands had posted strong volume growth — Roodeberg and Laborie both by more than 20%, Robert’s Rock by 15% and Imoya brandy by almost 90% — compared with the year-earlier period.
Inventory was at targeted levels, added Davis, “which proves the success of KWV International’s supply change management”. Sales forecasting accuracy had improved considerably, impacting positively on service levels.
During the four months, the group’s new KWV Reserve range of single varietal wines were well received by the market, winning several industry awards.
KWV Ltd chairperson Lourens Jonker will retire at the end of 2003 after nine years in the post. Under his chairmanship, the group transformed itself from a wine farmers’ cooperative to a private company. Both KWV and Jonker played a leading role in the establishment of several new wine industry bodies such as the Wine Industry Trust and the South African Wine and Brandy Company.
From January 1 2004 he will be replaced by Danie de Wet, the well-known wine farmer and owner of De Wetshof estate near Robertson. De Wet has been vice-chairperson of KWV Ltd for the past two years and is also chairperson of the South African National Wine Show. — I-Net Bridge