Winecorp teams up with Cape Coastal Vintners

Published: 23 July, 2008

Winecorp, the South African producer behind the Spier, Longridge and Dumisani brands, has entered into an agreement with Cape Coastal Vintners, a consortium of South African wine producers and investors, to form a new consolidated' company.

According to Winecorp CEO Vernon Davis, the new entity, which has just entered a 90-day due-diligence period, will be neither a conventional joint venture nor a merger. Both Winecorp and Cape Coastal will continue to exist as part of the same group, with each concentrating on its own strengths,' Davis told Harpers. The new entity would, however, see Cape Coastal looking after procurement and cellar management, and Winecorp taking responsibility for marketing and sales of both companies' brands, including Cape Coastal's Matuba, Jabulani and Kleinbosch brands. Discussions are also under way about the formation of a distribution arm. Davis added that, if the deal goes through, Sussex-based supplier PLB will retain its 5% share of Winecorp and take an active interest in the new entity.

Cape Coastal Vintners is an alliance of five producers from the Boland region - Boland Cellars, Bovlei Cellar, Wamakersvallei Winery, Wellington Cellar and Riebeck Cellars - and the management firm Strategy Partners.

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