| Fri 20 Jun 2003, 9:59 | | DISTELL GROUP LIMITED - DISTELL SATISFIED WITH TRI |
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DISTELL GROUP LIMITED - DISTELL SATISFIED WITH TRIBUNAL"S FINAL RULING
DISTELL GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1988/005808/06)
ISIN: ZAE000028668
SHARE CODE: DST
NEWS RELEASE
DISTELL SATISFIED WITH TRIBUNAL"S FINAL RULING
Distell, South Africa"s leading wine and spirits group, is to terminate the
marketing and distribution rights to Martell brandies, KWV 10 and 20 year old
brandy and certain KWV fortified wines. This follows a ruling by the
Competition Tribunal, which took due cognisance of a proposal submitted by
Distell.
In the instance of KWV, the ruling requires that neither company may nominate
members to the board of the other, nor are they allowed to distribute the
products of each other. This reinforces the independence of the two parties
from each other, although the investment by KWV in Distell remains intact.
The latest ruling draws to a close the final approval by the competition
authorities of the merger between Stellenbosch Farmers" Winery and Distillers
Corporation, which was initiated in 2000.
"Although it"s not easy to give up these premium brands in which we have
invested heavily and built market share in a keenly competitive market, we are
relieved that the lengthy process has now been finally settled" says Distell MD,
Jan Scannell.
"The removal of uncertainty allows Distell to focus on its plans to become a
leading South African force in global beverage markets. We can now get on with
our plans to grow internationally and to compete head on with the large global
conglomerates. We are further relieved that job losses have been prevented," he
says.
"We appreciate the Tribunal"s mature approach to a difficult issue. The
creation of Distell was intended to enhance the international competitiveness of
the South African wine and spirits industry. In avoiding the undue disruption of
ou business, the Tribunal has effectively taken a constructive step towards
realising this goal."
According to Andre Steyn, Corporate Affairs Director, Distell has enjoyed a
positive relationship of almost 40 years with the Martell brand during which
time the brand has been established as one of South Africa"s favourites
brandies.
Agreement having been reached on the terms of the transfer, including
compensation, the brand-owner, Pernod Ricard, will take over the marketing and
distribution of the Martell brandies with effect 1 July 2003. Both parties
expect the transition to proceed smoothly.
KWV will take over the marketing and promotion of its brands with effect 1 July
2003, although Distell will still handle distribution up to 30 June 2004.
"Distell has a wide range of brandy and other spirit brands that cover the full
spectrum of consumer choices, and is thus in a position to fill any gaps left by
the departure of the two agency brands," says Steyn.
__________________________________________________________________________
RELEASED ON BEHALF OF DISTELL BY AFRIKOM (18 June 2003)
ENQUIRIES:
Andre Steyn, Corporate Affairs Director, Distell,
Cell: 082-550-4758
Frikkie Odendaal, Afrikom, Tel: (021) 423-7263,
Cell: 082-577-0409
Date: 19/06/2003 05:32:04 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
