Consumer-focused investment group Vasari has concluded the acquisition of local wine and spirits producer KWV Group for R1.15-billion following Competition Commission approval.
“KWV is a strategic asset that will enable us to capitalise on the growth opportunities in wine and brandy and represents a major step towards creating a brand house with category dominating beverages.
“In retaining the KWV brand, we recognise the proud heritage and exceptional brand equity. It is also a testament to our commitment to extending the brand’s legacy and its strategic growth across African and Asian emerging and frontier markets. The acquisition makes it possible for us to broaden our offerings to customers in newer markets,” Vasari chairperson Vivian Imerman noted.
KWV chairperson Pedro Lotra noted that the company would continue to build on the brand’s successful legacy. “We look forward to working with the team to further grow operations and expand our presence, network and visibility in markets that matter.”
Vasari’s growth plans include leveraging the strength of KWV’s wine and brandy portfolio and driving acceptance on the continent and in other offshore jurisdictions.
“Growth in many advanced markets such as Europe has flatlined, while consumption in Asian markets, particularly of South African wine, is seeing continued appreciation and growth. Premium wine consumption continues to be driven by a sophisticated palate and, with a revitalised portfolio of established brands, we will now be able to benefit from such trends.
“The acquisition advances Vasari’s objectives of geographic expansion, diversifying participation in the alcohol beverages segment and enhancing the company’s ability to serve customers and shareholders alike,” Imerman pointed out.