/ 5 January 2006

Distell in ground-breaking SA wine launch

Distell, South Africa’s largest listed wine producer, has launched the first wines under a new brand from its ground-breaking joint venture in the Gansbaai area of the Western Cape, called Lomond Wines.

Started in 2000, the Lomond project was experimental, being situated in the southern-most area in South Africa to be planted with vines. The 800ha farm, extending beneath a mountain peak called Ben Lomond, has gradually been planted over the past five years to include 105ha of vines and a massive new dam covering 108ha, and will eventually comprise 400ha of vineyards in total.

The location, in South Africa’s newest Cape Agulhas appellation of origin, is already gaining recognition for the quality of its white wines thanks to the cooling ocean breezes that blow continually over the area. It is also sparsely developed, with hectares of indigenous fynbos rolling out in all directions.

Lomond Wines is 50% owned by Distell and 50% by Lomond Properties, a private company whose shareholders include well-known property developer Dave Mostert and former fruit farmers Wayne Gabb and Jannie Kuiper. Also included in the team are Distell winemaker Kobus Gerber and soil scientist Dawid Saayman.

Saayman said the unique mix of four different soil types on the farm — granite, shale, sandstone and clay — was “not a user-friendly environment” for growing grapes, but that the climate was right. Different irrigation systems were needed in every block, and he was still learning how the soil worked after five years of studying it.

The farm’s primary plantings are Sauvignon Blanc, Merlot and Shiraz grapes, with some Viognier, Semillon and Mourvedre, while other varieties are being considered, according to Saayman.

Launched at the end of 2005 were two Sauvignon Blanc wines from the 2005 vintage, called Sugarbush and Pincushion after the surrounding fynbos. They

come from two different but neighbouring single vineyard blocks in order to demonstrate the diversity of the terroir.

Next to be released in 2006 under the Lomond label will be two single-vineyard Shiraz wines from the 2004 vintage.

The Lomond wines are being marketed under the Cape Legends portfolio, which also encompasses leading wines like Neethlingshof, Stellenzicht, Le Bonheur, Uitkyk and Tukulu.

Distell has also added a black economic empowerment component to the venture. Early in 2005 the company funded the purchase of a 79ha farm bordering Lomond, called Ulyenkraal, which is now being developed as a BEE enterprise called Lomond Developments. The company is financing the planting of 46ha of vineyards on Uylenkraal this year.

Farm workers associated with the Lomond and Uylenkraal farming operations will own at least 26% of the company. Lomond permanently employs 30 farm workers, who also receive training in farm management and viticulture.

Water from the new dam, which has as its source the Uylenkraal River that runs through the farm, is being sold to the local municipality, and the dam has been stocked with trout that are also sold to local retailers. – I-Net Bridge