LIQUID INVESTMENTS: How upcountry wine distributors found their feet in the wine industry
NOT all of the upcountry wine distributors have roots — or even a foot — in the wine industry. Several evolved in the space between the cellar door and the Gauteng trade.As wineries increasingly launched their labels into what became a saturated market, the need to meet the service requirements of restaurants and bottle stores forced wineries to subcontract sales and delivery.The game has its limitations: distributors can only do a decent job if their reps do not have over-heavy portfolios. They also cannot afford to become dependent on the revenues they earn from one or two key players (the bigger a brand becomes, the less it needs to surrender the distributor margin to a third party.) Some of the mid-size wine producers developed their own distribution network and invited a select few of their more indirect competitors to come on board to reduce their own handling costs.This model also has its limitations: if you were sharing truck space with a winery that owned the vehicle, and t...
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.