MICHAEL FRIDJHON: Distell’s LVE foray was a short but not fruitless venture
U-turn on Libertas Vineyards and Estates will compromise the company’s credibility in the wine industry
Two weeks ago, as part of the release that accompanied its half-year results, Distell — SA’s largest wine and spirits company — revealed that it intended to sell its two most important wine estates, Alto and Plaisir de Merle. A further announcement confirmed that Libertas Vineyards and Estates (LVE), which had been hived off from the main wine and spirits business amid much fanfare at the beginning of 2019, would be reintegrated into Distell.
The news spread like an Australian bush fire through the wine industry. Su Birch, retired CEO of Wines of SA, tweeted: “Once again Distell chops and changes its wine strategy.” Distell’s decision in January 2019 to create LVE and commit its major premium wine brands to the new entity had been greeted with scepticism by growers and competitors. This complete reversal must inevitably compromise the company’s credibility in the wine industry...
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