DGB Pty Ltd, South Africa’s largest independent wine, spirits and craft beer producer, announced at Vinexpo that it has secured an exclusive distribution agreement with China’s massive COFCO group.
COFCO (China Cereals, Oils and Foodstuffs Co-operation) is China’s largest importer and exporter in these elds. The agreement will see COFCO now operate as the South African producer’s sales, marketing and distribution partner with very ambitious marketing and growth plans.
Following the agreement, COFCO will, in the initial phase, exclusively import and market DGB brands Boschendal and Tall Horse, with the expectation to later expand the portfolio with other brands from the DGB wine stable.
China has become an increasingly important market for South African wineries:
China’s wine import market totaled 638 million litres in 2016 – a year-an-year increase of 15%, according to the Asian giant’s customs department – while import values grew by 16,3% year-on-year, amounting to $2,364-billion. Wine sales in China are predicted to grow by 39,8% over the next three years, leading the country to become the world’s second largest wine market after the United States – surpassing France and the UK. South Africa has seen its market share improving, as interest in wine in China starts to extend beyond “traditional” Old World wine producing countries. Mainland China is currently the biggest Asian market for South African wine by volume and the sixth largest export destination for the country.
Says Castle Li, General Manager of COFCO Wine & Wine: “We are proud to be associated with the well- respected South African industry- leader, DGB. Chinese consumers are showing increased interest in ‘New World’ wines, and we believe DGB, with its diverse portfolio, is well-positioned to provide in this need. The Boschendal and Tall Horse brands offer two of the great market drivers: value and reputable quality”.