KWV takes on SA white spirits market

Cape Town - KWV is set to take on the white spirits market as the new, exclusive distributor of Stolichnaya Premium Vodka and elit by Stolichnaya, for Stoli Group, part of the SPI Group, which owns these two brands.

At the same time, KWV announced that it has signed an exclusive distribution agreement with SPI for the Baltics (Latvia, Lithuania and Estonia) where SPI will distribute the KWV wine and brandy portfolio in these markets.

"After significant growth across the world in 2014, we are very excited to embark on this new pan-regional deal with KWV. We see enormous potential for Stoli, and look forward to bringing our products to new customers in the market with exciting consumer promotions and a dedicated trade engagement program," said Robert Cullins, global commercial director of Stoli Group.

Increasingly popular

According to the 2013 Sawis report on liquor consumption patterns, the vodka market has seen structural change over the past two years with an increase in "super premium" products selling at R150 and more per bottle. In 2010/2011 these products had only 1.8% share of the vodka market, but this has now increased to 7.5%.

"The South African market is very receptive to premium vodka compared to some other markets and the segment is showing massive growth in South-Africa where it is becoming increasingly popular," said Anneke Mackenzie, KWV’s global portfolio manager, spirits.

"Stoli is currently the world’s 5th largest premium vodka brand, showing substantial growth and an increase in footprint and we are delighted to add this authentic brand to our distribution portfolio. Both companies are very positive in building a strong relationship and we will look at expanding our cooperation in other areas."

"The SA liquor industry has become extremely competitive, with new trends, categories and brands entering the market," said Werner Swanepoel, KWV sales director, spirits.

"With globalisation, the SA consumer is looking for new and trendy products, mainly driven by international brands. With international brands like Stoli and Lucas Bols, an international liqueur (for which KWV has also signed a distribution agreement) added to the KWV portfolio, this extends our entry into new categories and new channels. These products also contribute to our drive to increase our overall premium offering."