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Distell launches 56 Hundred Nederburg wine as profits surge

Published:  27 August, 2014

South Afica's Distell has launched a new Nederburg range 56 Hundred, which includes a Pinot Noir and Pinot Grigio.

The news comes as the wine, spirits, cider and RTD producer celebrated a 40% increase in its full year net profits to ZAR1.52 bilion as it announced its annual results yesterday. Net sales for the 12 months to June 2014 rose 12.8% to ZAR17.74 billion, while operating profits were up 22.9% to ZAR2.17 billion.

Distell's Nederburg 56 HundredDistell has launched 56 Hundred as part of its Nederburg wine rangeThe Pinot Noir and PInot Grigio selection has been specially chosen with the UK consumer in mind, said Distell as it published a strong set of results showing net profits surge 40%.

The new 56 Hundred range has been specially developed with the UK consumer's love for Pinot Noir and Pinot Grigio in mind. Targeting existing Nederburg drinkers, the new range also aims to recruit new consumers to the South African category.

The brand name comes from the company's founder Philippus Wolvaart, who paid 5600 guilders for the land he went on to name Nederburg in 1791.

The wines are now available in Tesco rrp £7.99.

Distell has a portfolio of almost 100 brands and employs nearly 5,000 people worldwide. Its annual turnover is ZAR14.2 billion.

Distell purchased Burn Stewart Distillers, makers of Bunnahabhain whisky, in April 2013 for ZAR2.2 billion. Its other bestselling products include Savanna Dry cider and Amarula liqueur.

Managing director Richard Rushton said: "Efficiencies gained in procurement, production, distribution and support services, coupled with the foreign currency gains and a more balanced sales mix, helped to offset the impact of steep increases in excise duties and the greater investment in marketing and sales resources."

"Our decision to exercise price restraint, together with our broad portfolio offering of both premium and accessible brands enabled us to compete and grow effectively in the market, despite mixed results in some segments."

The company is expecting a modest improvement in trading conditions led by the recovery in advanced economies, which is driving emerging economy exports. "We are confident of unlocking real value for all our stakeholders with our strong, diverse and appealing brands," Rushton added.