BEVERAGES: Simonsvlei Joins Forces With Lutzville
Recent Western Cape Business News
Simonsvlei International and Lutzville Vineyards have announced that they have signed a multi-million Rand agreement, which will see the two companies collaborating very closely into the future.
According to Simonsvlei managing director Leonard van den Berg, this agreement comes after months of intense discussions and negotiations between the two boards. “We are very positive about this strategic alliance and we firmly believe that cooperation is the key to success in the highly competitive environment we operate in,” says Van den Berg. Mr Johan Heckroodt and Mr Jannie Mostert, MD and chairman of Lutzville Vineyards respectively, expressed their excitement and believe the agreement is a major step forward in magnifying Lutzville as a quality wine producer with exponential growth potential in its bottled brands by using Simonsvlei’s well-established marketing and bottling infrastructure.
The agreement sees Lutzville acquiring joint ownership in the trademark Simonay. The two companies have further agreed to implement a joint national marketing plan for the Simonay brand, which should create further opportunities for the expansion and development of the brand and the trade with the consumer benefitting further.
In addition, Lutzville Vineyards will be contracted to Simonsvlei for additional bottling requirements, bulk storage, production and wine-making facilities. Simonsvlei will also source additional wine requirements from Lutzville, while taking the responsibility of marketing all domestic Lutzville brands through its existing domestic channels.These brands include Diamond Collection, Lutzville and Cape Elephant.
Simonsvlei was established in 1945 and has gained international recognition for its commitment to innovation, integrity, independence and entrepreneurial spirit, while producing quality wines under its banner and expanding with new brands such as South Atlantic, Ja-Mocha Pinotage and Toffee Chunk Syrah. Lutzville is located on the West Coast wine route and is the second largest single cellar in the country with excellent terroir, which includes cool climatic conditions.
“There is a definite synergy between the two companies and we are very excited about our journey together. We felt strongly that the combined expertise and infrastructure of Simonsvlei and Lutzville will meet growing demands. The wine industry is facing challenging times and we are confident that our collaboration will be mutually beneficial,” states François De Maniel, Chairman of Simonsvlei.
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