INTERNATIONAL TRADE: Zandvliet Signs China Export Deal
Recent Western Cape Business News
Robertson Wine Valley producer, Zandvliet Estate has signed a five-year sales and distribution agreement for Mainland China, Hong Kong, Macau, Taiwan and other countries in the region amidst tougher trading conditions in the European export market.
The sales and distribution agreement was signed between Zandvliet Estate, Johannesburg based export service suppliers CJ&MG and SA Valley. They have a well-established agent network in 15 of the 34 provinces in China and operate 15 retail outlets called South African Valley, which only sells South African wine. Under their expansion framework, a further 15 outlets is set to be opened by the end of 2011. “We are immensely excited at signing this agreement and will actively support SA Valley at shows and events in China each year as we look forward to a relationship that extends and prospers way beyond the initial five year term”, comments Judi Dyer, managing director of Zandvliet Estate.
A slower than expected economic recovery in the UK, South Africa’s biggest wine export market, and a stronger Rand decreasing already stressed profit margins have forced local wine producers to widen its scope and invest in emerging markets. The far Eastern market, although smaller in volume, has shown strong growth potential.
“The local market will always remain our key focus as we have a very strong presence and following. We operate in only few export markets and each, particularly the Netherlands, is an important market for us. We still have some room however to open a couple of the new exciting wine drinking markets that are emerging – China being one of them”, concludes Dyer.
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