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Wednesday, September 24, 2014

Brand Phoenix makes ‘huge move’ with Kingsland distribution deal

Kingsland has signed a deal to distribute Brand Phoenix's First Cape and Distell ranges throughout the impulse, convenience and wholesale markets.

Previously Brand Phoenix carried out its own distribution as well as using SHS, although managing director Greg Wilkins admitted that it has "never really had the infrastructure to get the brand out" beyond the major retailers. Wilkins said working with Kingsland was a "very natural fit".

Wilkins told Harpers.co.uk: "This is a huge move for us. It gives us the opportunity to get much deeper distribution into all other [sectors of the market] that historically we haven't got to."

First Cape has recently revamped its First Cape packaging, brought in a new winemaker and with the Kingsland deal, Wilkins said "the final piece of the puzzle is in place". He is confident the deal will see an additional 3 million litres of First Cape and Distell wines pushed through Kingsland in the next two years. "That would be a good performance," he added.  

 

Kingsland will now distribute Brand Phoenix throughout impulse and convenience

"Kingsland will have a stronger South Africa portfolio with a ladder of products at different price points, reaching a broader customer and consumer base, while Brand Phoenix will now benefit from the consistency and quality of service in these sectors that the Kingsland business can provide"

Kingsland MD Andy Sagar.

 

Neil Anderson, marketing director at Kingsland, said: "This is a new partnership with Brand Phoenix. We will continue to build on our existing strong partnership - we already pack and bottle for them - now we are strengthening that and will be distributing and selling both First Cape and Distell brands to impulse, convenience, wholesale and cash & carry sectors."

Brand Phoenix will continue to work directly with multiple retailers. Wilkins believes there are also strong opportunities in the on-trade - particularly with the pub groups for both Nederburg and First Cape.

Kingsland already has three South African brands in its portfolio - Lutzville, Rickety Bridge and De Grendel. Anderson said it "ensures we have different brands at different price points targeting different channels". He added that South Africa has grown 25% by value in the past two years, meaning there was a spotlight on the country's wines now.

Kingsland managing director Andy Sagar said that after packing for Brand Phoenix for the past six years, both firms understand each other well. He added: "The trading landscape out there is changing and very competitive, and both businesses recognise that the future has to be about companies collaborating on providing total solutions for our customers. Kingsland will have a stronger South Africa portfolio with a ladder of products at different price points, reaching a broader customer and consumer base. Brand Phoenix will now benefit from the consistency and quality of service in these sectors that the Kingsland business can provide."

For Distell, accessing these new sectors of the market is "literally a blank canvas", representing a major opportunity, while First Cape has the advantage of being a better-known brand, Wilkins said.

"It's entirely about visibility. We want to be available everywhere - that's about making sure every corner store, forecourt and independent wine shop has some sort of presence from First Cape and Nederburg," Wilkins added.

Kingsland is a leader in the UK filling, packaging and bulk wine shipping sector, as well as offering a complete supply chain solution. It bought some of Stratford's assets after that firm went into administration in 2012 and has now built its agency business to include McWilliam's from Australia; Shorn and Rams-say from Marlborough, New Zealand; Torre Albarrana from Spain and Vino Pomona from Italy.

Brand Phoenix has significant business with Distell and French group Castel, as well as merchant Champagne brand Oliver Moore. Its own brand First Cape is the second largest South African retail brand in the UK. Created in 2002, within three years it had sold more than 1 million cases a year. Earlier this year  Brand Phoenix said it was moving away from lighter style wines  - it had 30 in its portfolio but has cut that number to six - in order to focus standard full strength wines.

Distell is the largest producer of wine in South Africa - it made 35% of all South African wine last year. Its large portfolio includes Cape Heritage brands Danger Point, Whale Caller and Cape Peak and,just released from Nederburg, the 56 Hundred collection.

Posted by brandphoenix

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