Distell Explained

Distell Group Limited
Type:Public limited company
Foundation: through Merger
Fate:Carved-out
Location:Stellenbosch, South Africa
Key People:Richard Rushton - CEO
Industry:Brewing, Beverage
Revenue:ZAR 17.7 Billion (2014)[1] The shareholding as at 31 March 2014 is shown below:[2]
Profit:ZAR 1.5 Billion
Assets:ZAR 15.9 Billion (2014)
Num Employees:5,300 (2014)
Homepage:www.distell.co.za
Founder:William Charles Winshaw
SFW's Founder
Anton Rupert
Distillers Corp's Founder
Predecessor:Stellenbosch Farmers' Winery
Distillers Corporation

Distell Group Limited, commonly referred to as Distell, was a multinational brewing and beverage company, based in South Africa. On April 26, 2023, Distell was acquired by Heineken.[3] After that, its operations were integrated into Heineken Beverages, a company created by the merger of its South African unit, Distell, and the African brewery acquired by the Dutch multinational Namibia Breweries.[4]

Overview

Distell Group Limited is a producer and marketer of spirits, fine wines, ciders and ready-to-drinks. The group's headquarters are in Stellenbosch, South Africa.[5]

As at February 2014, Distell had 5,300 employees worldwide and an annual turnover of ZAR 17.7 Billion.

History

Distell Group Limited traces its roots to two major alcoholic beverage companies in South Africa, Stellenbosch Farmers' Winery (SFW) and Distillers Corporation, that merged on 4 December 2000.

Merger

Stellenbosch Farmers' Winery

Stellenbosch Farmers Winery Group (SFW) the founder member of Distell Group was formed in 1925 by William Charles Winshaw, an American medical doctor.[6] As at the year 2000, SFW produced and distributed wine and spirits as well as non-alcoholic beverages through retail outlets South Africa and across the world.[7]

In 1956 Stellenbosch Farmers Winery Ltd was listed on the Johannesburg Stock Exchange.[8]

Distillers Corporation

Distillers Corporation was formed in 1945 by Anton Rupert. Distillers expanded energetically and very quickly set up marketing relationships and partnerships in the wine and spirits industry. The company became a major producer, focusing on distillates and in particular on the brandy market that it developed from relative obscurity to its current level of prominence. It is renowned for its Bergkelder concept, a marketing innovation that invited wine estates to make use of Distillers' bottling, sales and marketing expertise. In addition, it created a new African icon, Amarula Cream, which is one of the top-selling cream liqueurs in the world.

Distillers Corporation was also listed on the JSE.

Merger transaction

On 20 September 2000, Distillers' Corporation and Stellenbosch Farmers Winery directors announced the merger of the two firms. The merger was made possible because both firms had a similar shareholding structure i.e.[9]

This structure allowed the merger not to have any diluting effect on the lead shareholders' effective interest in the merged entity.[10]

On 4 December 2000, the management announced the conclusion of the merger. The newly formed entity was known as Distell from the names of the two constituent companies.[11]

Distell Group's shares began trading on the Johannesburg Stock Exchange on 19 March 2001 under the symbol DST.[12]

Post merger

In April 2013 Distell bought Scotch whisky company Burn Stewart Distillers from CL Financial for £160m.[13]

Following its acquisition of SABMiller,[14] Anheuser-Busch InBev announced that it would sell its 26.4% acquired state in Distell Group to Public Investment Corporation.[15]

Announced acquisition

On 15 November 2021, Heineken announced a plan to buy Distell Group, in order to become the market-leading alcoholic beverage supplier in South Africa. The takeovers would be the first major deal for Heineken’s CEO and chairman of the executive board Dolf van den Brink, who took charge at Heineken in June 2020.[16] The acquisition was completed in 2023[17]

Ownership

The stock of Distell Group Limited is listed on the JSE, where it trades under the symbol: DST. shareholding in the group's stock is as depicted in the table below:[18]

Distell Group Limited Stock Ownership
Rank Name of OwnerPercentage Ownership
1Remgro-Capevin Investments Proprietary Limited 53.00
2Other Beverage Interests Proprietary Limited 26.50
3Others via the JSE 20.50
Total100.00

Brands

Distell's major brands include:[20]

Cider and ready to drink

See also

External links

Notes and References

  1. Web site: About the company: Distell Group Ltd [JSE:DST]]. 30 April 2014. 2 November 2014. FSP Invest. Brownlee. Julie.
  2. Web site: 31 March 2014 . Distell Group 2014 Annual Report . https://web.archive.org/web/20141103222003/http://www.distell.investoreports.com/sd2014/downloads/Overview.pdf . 2014-11-03 . 3 November 2014 . Distell Group Limited.
  3. Web site: HEINEKEN successfully completes acquisition of Distell and Namibia Breweries to create HEINEKEN Beverages. Heineken N.V.. 2023-07-24. en-US.
  4. Web site: Our Profile. Heineken Beverages. 2023-07-24. en-US.
  5. Web site: Distell Contacts. 2 November 2014. Distell Group Limited.
  6. Web site: Distell History. 3 November 2014. Distell Group Limited.
  7. Web site: Stellenbosch Farmers Winery Group Ltd. 3 November 2014. Bloomberg LLP.
  8. Web site: Modern day History Timeline of Stellenbosch. 3 November 2014. ShowMe™.
  9. Web site: 13 March 2003 . Case No: 08/LM/Feb02 - Merger between Distillers Corporation (SA) Limited and Stellenbosch Farmers Winery Group Ltd . https://web.archive.org/web/20141103154648/http://www.comptrib.co.za/assets/Uploads/Case-Documents/08LMFEb02.pdf . 2014-11-03 . 3 November 2011 . Competition Tribunal, Republic of South Africa.
  10. Web site: Remgro Group 2001 Annual Report. 31 March 2001. 3 November 2014. Remgro Group.
  11. Web site: SOUTH AFRICA: Distillers' Corporation + Stellenbosch Farmers Winery = Distell. 5 December 2000. 3 November 2014. just-drinks.com. Aroq Limited. Kirkby. Arnold. 3 November 2014. https://web.archive.org/web/20141103142641/http://www.just-drinks.com/news/distillers-corporation-stellenbosch-farmers-winery-distell_id78854.aspx. dead.
  12. Web site: JSE listing for Distell. 1 May 2011. 2 November 2014. WineLand. Cassie du Plessis. Henry Hopkins. dead. https://web.archive.org/web/20141102135807/http://wynboer.co.za/articles/jse-listing-for-distell-2. 2 November 2014. dmy-all.
  13. https://www.bbc.co.uk/news/uk-scotland-scotland-business-22151857 BBC News
  14. News: SABMiller, AB InBev Shareholders Approve $100 Billion-Plus Merger. Mickle. Tripp. 2016-09-28. Wall Street Journal. 0099-9660. 2016-09-29.
  15. Web site: AB InBev to Sell Stake in Distell to South African Fund PIC. Bonorchis. Renee. Loni. Prinsloo. 15 December 2016. Bloomberg Businessweek. Bloomberg L.P.. 22 December 2016.
  16. Philip Blenkinsop and Promit Mukherjee, Heineken to buy South Africa's Distell and Namibian Breweries at: Reuters
  17. Web site: Heineken completes Distell and Namibia Breweries acquisition . 27 April 2023 .
  18. Web site: 30 June 2015 . Distell Group 2015 Annual Report . https://web.archive.org/web/20160305144045/http://www.distell.investoreports.com/ar2015/downloads/Distell%20IAR%202015%20web1.pdf . 2016-03-05 . 13 January 2016 . Distell Group Limited.
  19. Web site: Capevin Holdings Limited 2014 Annual Report. 30 June 2014. 3 November 2014. Capevin Holdings Limited. 3 November 2014. https://web.archive.org/web/20141103164648/http://www.capevin.com/sites/default/files/Capevin_AR_2014.pdf. dead.
  20. Web site: Distell Group Brands. 2 November 2014. Distell Group Limited.