/ 6 July 2004

Diageo, Nambrew, Heineken unveil R3bn company

Leading alcoholic beverages groups Diageo, Heineken and Namibia Breweries have finally unveiled details surrounding their new South African joint venture company, which will trade under the name of brandhouse.

The new company will be a formidable competitor in the local market, boasting sales of about R3-billion annually and combining the sales, marketing and distribution of over 40 of the world’s top premium brands in the fast growing alcoholic beverages sector in South Africa.

Among its brands are premium beers including Windhoek, Heineken, Guinness, Kilkenny and Beck’s, while its scotch whisky portfolio includes global premium best seller Johnnie Walker, South African market leader Bell’s, J&B, White Horse and Dimple, as well as a broad selection of single malt whiskies.

In other drinks categories, brandhouse will also market Smirnoff Vodka, Jose Cuervo Tequila, Tanqueray Gin, Captain Morgan Black Label and Spiced Gold rum, as well as Archers and Archers Aqua and Smirnoff Spin. Bertrams VO Brandy, Cape Velvet Cream and Gilbeys Gin are brandhouse’s home grown brands.

The formation of brandhouse follows the acquisition by Diageo and Heineken of an effective 28,9% stake in Namibia Breweries in July 2003. Shareholder agreements for the joint venture were finalised in April 2004 following unconditional approval by the South African Competition Commission.

Brandhouse managing director Simon Litherland, previously head of Guinness UDV (Diageo) in South Africa, said the emergence of an influential consumer group in South Africa had provided a great opportunity to create a new premium liquor business.

“South Africa is an incredibly exciting market for us,” he said.

“Overall growth in the liquor industry has been minimal for some years now, but the premium sector is growing very fast.

“Brandhouse is all about consumer focus and commercial excellence. We will be relentless in ensuring our service continually exceeds customer expectations.

The brandhouse team had spent the last few months preparing for the launch to the market under the new name and was also playing a leading role in formulating the draft black economic empowerment charter for the liquor industry. – I-Net Bridge