COMPANY COMMENT: Next few years will tell if it’s too late for Distell
At last, the control structure has been sorted out. The next few years will reveal whether or not it’s too late
It could be the corporate equivalent of the nature versus nurture debate as Distell tries to suppress its management DNA by swamping it with foreign talent from SABMiller.Foreign in this context means anything that is not second-or third-generation Stellenbosch. While this quaint town has developed a reputation for its cutting-edge banking and IT talent, it hasn’t done quite as well in the liquor industry. Not that Distell management didn’t perform exceptionally well in propelling the company to the global number two slot in the cider market, but other than that, it hasn’t quite managed to realise its potential. There are good reasons for its subpar performance, chief of which is its control structure. Divided almost equally between Remgro, KWV and SAB, the Distell business was something of an orphan. While it wasn’t free to do whatever it liked, its three shareholders weren’t prepared to invest resources to support its growth. It was trapped in a sort of corporate limbo where littl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.