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 more than 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 bestseller 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 some of the biggest-selling spirits in the world, such as Smirnoff Vodka, Jose Cuervo Tequila, Tanqueray Gin, Captain Morgan Black Label and Spiced Gold rum, as well as Archers and the ever-popular 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 that is trading up into premium brands has provided a great opportunity to create a new premium liquor business.
“South Africa is an incredibly exciting market for us,” he observed.
“Overall growth in the liquor industry has been minimal for some years now, but the premium sector is growing very fast.
“Through our unrivalled portfolio of premium brands and our global experience in this sector, we are very well positioned to take full advantage of the opportunities the market presents. We are very excited to be able to offer our customers a portfolio of brands that will satisfy our consumers’ needs across a broad range of premium occasions.”
Litherland said the company has drawn together some of the most talented people in the industry and many of the worlds’ strongest brands into a new, re-engineered business structured for growth. The company has integrated the operations of its parent companies to create one sales force and one call centre for its thousands of customers across South Africa.
“Brandhouse is all about consumer focus and commercial excellence. We will be relentless in ensuring our service continually exceeds customer expectations.
“Our sales and distribution network has also been aligned to ensure our brands reach our consumers wherever they expect to find them. In-house, we have put together a very talented and passionate team and we will continue to attract and develop the highest-calibre talent to deliver our ambitious strategic goals.”
The brandhouse team has spent the past 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