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Retail News South Africa

Joint venture makes SA winemaker ally of UK distribution group

The joint venture alliance in the UK of South African winemaker Omnia Wines and UK distribution group Ehrmanns, effective 3 April 2006, is a reflection of the necessity to respond to increasing customer consolidation in the UK, and major customers' need for a reduced number of buying points.

"We opted to respond to these developments with an alliance rather than create another distribution outlet," says Hermann Böhmer, CEO of Omnia Wines. "Strategically we wanted to retain our presence and identity in the market, but simultaneously we were looking for a UK partner who could bring the advantages of a strong portfolio of brands to our range. Ehrmanns meets all of these needs, and is well-positioned to supply all sectors of the market."

The result of a strategic review of Omnia Wines' international operations, the alliance also coincides with Omnia changing its name to 'the company of wine people™'. The new alliance will be called 'the company of wine people europe limited™'.

Distribution of the Arniston Bay and Thandi brands, and the impending launch of Kumkani into the UK on-trade, are covered under this alliance; the Welmoed brand, however, will continue to be imported and distributed by import group Myliko.

Ehrmanns commercial director Nick Day says, "We are looking forward to working with Omnia Wines and continuing their first class service record.

"In our opinion a popular brand like Arniston Bay can only benefit from its inclusion in a larger brand portfolio. We believe that this joint venture alliance is an innovative way to respond to ever-changing market dynamics by two partners of similar mindset."

Key members of the Omnia Wines team in the UK and South Africa are working with Ehrmanns to ensure continuity of supply to customers.

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