WINECORP PLANS SHAKE-UP

Published: 23 July, 2008

By Stuart Peskett

Winecorp MD Vernon Davis has announced plans for a strategic repositioning' of the company, with the Spier brand likely to become its umbrella. Shareholders have already given the go-ahead to merge Winecorp Ltd, the listed company, with the unlisted Winecorp SA. Winecorp is currently made up of Spier Holdings, which in turn owns Winecorp Holdings, which is split into Winecorp Ltd and Winecorp SA. Davis told Harpers: It's still very much a proposal. Since I joined Winecorp, I have taken the two companies' management teams and we have been through a very intense strategic planning session. During this session, what came out as a single focus was that the two businesses should move much closer together.' Davis admitted there had been a loss of focus', and that the decision on whether to merge the two companies would be made over the next three months'. He added: We have to focus our markets very carefully. We are looking for a new brand portfolio and a new company structure.' Davis also said that he wants to even up' Winecorp's home/export sales volumes (the company exports ten times what it sells in South Africa). You need to have a reasonable market share in your country of origin. It's difficult to explain to customers. I will also look to have a bit more distribution in South Africa.' Winecorp will be launching its new range, Inspire, at the LIWSF. The range, which will retail at 5.99, comprises a Sauvignon Blanc, Chardonnay, Cabernet Sauvignon, Pinotage, Shiraz and Merlot. They will be available at major multiples in the UK.

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