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DISTELL GROUP LIMITED - Condensed unaudited results of the group for the six months ended 31 December 2015 and cash dividend declaration

Release Date: 17/02/2016 13:16
Code(s): DST     PDF:  
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Condensed unaudited results of the group for the six months ended 31 December 2015 and cash dividend declaration

Distell Group Limited
Registration number: 1988/005808/06
JSE share code: DST   ISIN: ZAE000028668
('Distell' or 'the Group' or 'the Company') 
  
CONDENSED UNAUDITED RESULTS OF THE GROUP FOR THE SIX MONTHS ENDED 31 DECEMBER 2015 
AND CASH DIVIDEND DECLARATION


SALIENT FEATURES


*  Sales volumes up 7,7% 
*  Revenue up 11,2%
*  Operating profit
   -  Normalised up 15,8%
   -  Reported up 16,5%
*  Headline earnings
   -  Normalised up 16,8%
   -  Reported up 17,8%
*  Interim dividend of 165,0 cents per share



CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 


                                                              Unaudited                       Audited
                                                             31 December                      30 June
                                                     2015                  2014                  2015
                                                    R'000                 R'000                 R'000
                                                                                        
ASSETS

Non-current assets

Property, plant and equipment                   4 752 495             4 025 672             4 351 965
Biological assets                                  99 966               105 079               105 914
Loans and receivables                             186 800               193 742               191 159
Available-for-sale financial assets               119 321                98 050                99 754
Investments in associates                         217 480               199 780               233 685
Investments in joint ventures                     174 206               149 852               160 423
Intangible assets                               2 256 788             1 789 866             1 879 680
Retirement benefit assets                         304 915               241 492               310 985
Deferred income tax assets                        101 730                73 959               101 686

Total non-current assets                        8 213 701             6 877 492             7 435 251

Current assets

Inventories                                     7 998 771             6 598 445             7 509 937
Trade and other receivables                     4 006 539             3 175 262             2 223 009
Current income tax assets                          35 697                39 189                20 204
Cash and cash equivalents                       1 301 132             1 160 157               619 367

Total current assets                           13 342 139            10 973 053            10 372 517

Total assets                                   21 555 840            17 850 545            17 807 768


EQUITY AND LIABILITIES

Capital and reserves

Capital and reserves                           11 081 219             9 179 072             9 537 114
Non-controlling interest                           15 184                20 613                19 283
Total equity                                   11 096 403             9 199 685             9 556 397

Non-current liabilities

Interest-bearing borrowings                     3 494 691             3 143 095             3 323 446
Retirement benefit obligations                     25 876                26 432                24 243
Deferred income tax liabilities                   747 932               646 268               627 983

Total non-current liabilities                   4 268 499             3 815 795             3 975 672

Current liabilities

Trade and other payables                        4 437 014             4 011 997             3 017 128
Interest-bearing borrowings                     1 255 386               479 357               870 378
Provisions                                        348 272               271 331               331 655
Current income tax liabilities                    150 266                72 380                56 538

Total current liabilities                       6 190 938             4 835 065             4 275 699

Total equity and liabilities                   21 555 840            17 850 545            17 807 768



CONDENSED CONSOLIDATED INCOME STATEMENTS 


                                                              Unaudited                                                         Audited
                                                          Six months ended                                                   Year ended
                                                             31 December                                                        30 June
                                                     2015                         2014            Change                           2015
                                                    R'000                        R'000                 %                          R'000
                                                                                                                                                           
Revenue                                        12 222 913                   10 996 674              11.2                     19 588 970

Operating costs                               (10 517 268)                  (9 527 515)             10.4                    (17 454 599)
  Costs of goods sold                          (7 804 675)                  (7 202 351)                                     (12 813 730)
  Sales and marketing costs                    (1 561 573)                  (1 267 330)                                      (2 699 733)
  Distribution costs                             (651 632)                    (612 405)                                      (1 120 368)
  Administration and other costs                 (499 388)                    (445 429)                                        (820 768)
Other losses                                         (433)                      (4 884)                                          (5 315)

Operating profit                                1 705 212                    1 464 275              16.5                      2 129 056

Dividend income                                     3 583                          362                                            6 698
Finance income                                      6 342                       11 497                                           23 241
Finance costs                                    (130 268)                    (138 246)                                        (259 711)
Share of equity-accounted earnings                 39 152                       41 143                                           89 401

Profit before taxation                          1 624 021                    1 379 031              17.8                      1 988 685

Taxation                                         (463 702)                    (394 733)                                        (569 024)

Profit for the period                           1 160 319                      984 298              17.9                      1 419 661

Attributable to:
Equity holders of the company                   1 163 324                      990 296              17.5                      1 437 136
Non-controlling interest                           (3 005)                      (5 998)                                         (17 475)
                                                1 160 319                      984 298              17.9                      1 419 661
Per share performance:
Issued number of ordinary shares ('000)           222 109                      221 737                                          221 737
Weighted number of ordinary shares ('000)         218 920                      218 619                                          218 621
Earnings per ordinary share (cents)
- basic earnings basis                              531.4                        453.0              17.3                          657.4
- diluted earnings basis                            529.6                        451.6              17.3                          654.9
- headline basis                                    531.5                        451.7              17.7                          656.2
- diluted headline basis                            529.7                        450.3              17.6                          653.7

Dividend per ordinary share (cents)
- interim                                           165.0                        158.0               4.4                          158.0
- final                                                 -                            -                 -                          188.0
                                                    165.0                        158.0               4.4                          346.0

Reconciliation of headline earnings:
Net profit attributable to equity 
  holders of the company                        1 163 324                      990 296              17.5                      1 437 136
Adjusted for (net of taxation): 
  net other capital losses                            312                       (2 885)                                          (2 575)
Headline earnings                               1 163 636                      987 411              17.8                      1 434 561
Adjusted for (net of taxation): 
  remeasurement of contingent consideration             -                        8 891                                            8 891
Normalised headline earnings                    1 163 636                      996 302              16.8                      1 443 452



CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 


                                                                                         Unaudited                                            Audited
                                                                                      Six months ended                                     Year ended
                                                                                        31 December                                           30 June
                                                                                 2015                   2014                                     2015 
                                                                                R'000                  R'000                                    R'000
                                                                                                                                           
Profit for the period                                                       1 160 319                984 298                                1 419 661

Other comprehensive income (net of taxation)                                  770 502                 (1 991)                                 244 821

Items that may be reclassified subsequently to profit or loss:
Fair value adjustments
- available-for-sale financial assets                                          19 559                  4 853                                    5 692
Currency translation differences                                              721 654                  2 693                                  178 460

Items that will not be reclassified to profit or loss:
Remeasurements of post-employment  benefits                                    29 289                 (9 537)                                  60 863
Share of other comprehensive income of associates                                   -                      -                                     (194)

Total comprehensive income for the period                                   1 930 821                982 307                                1 664 482

Attributable to:
Equity holders of the company                                               1 933 981                988 594                                1 683 154
Non-controlling interest                                                       (3 160)                (6 287)                                 (18 672)
                                                                            1 930 821                982 307                                1 664 482



CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 


                                                                                         Unaudited                    Audited
                                                                                     Six months ended              Year ended
                                                                                        31 December                   30 June
                                                                                 2015                2014                2015 
                                                                                R'000               R'000               R'000

Attributable to equity holders
Opening balance                                                             9 537 114           8 569 623           8 569 623
Comprehensive income
Profit for the period                                                       1 163 324             990 296           1 437 136

Other comprehensive income (net of taxation)
Fair value adjustments:
- available-for-sale financial assets                                          19 559               4 853               5 692
Currency translation differences                                              721 809               2 982             179 657
Remeasurements of post-employment  benefits                                    29 289              (9 537)             60 863
Share of other comprehensive income of associates                                   -                   -                (194)

Total other comprehensive income                                              770 657              (1 702)            246 018
Total comprehensive income for the period                                   1 933 981             988 594           1 683 154

Transactions with owners
Employee share scheme:
- shares paid and delivered                                                     5 508               8 176              13 436
- value of employee services                                                   16 169              12 562              31 265
Dividends paid                                                               (411 553)           (399 883)           (745 680)
Changes in ownership interests in subsidiaries that 
  do not result in a loss of control                                                -                   -             (14 684)

Total transactions with owners                                               (389 876)           (379 145)           (715 663)

Attributable to equity holders                                             11 081 219           9 179 072           9 537 114

Non-controlling interest
Opening balance                                                                19 283              31 532              31 532
Loss for the period                                                            (3 005)             (5 998)            (17 475)
Dividends paid                                                                   (939)               (831)               (831)
Currency translation differences                                                 (155)               (289)             (1 197)
Transactions with non-controlling interests                                         -              (3 801)              7 254
Total non-controlling interest                                                 15 184              20 613              19 283
                                                                                                      
Total equity at the end of the period                                      11 096 403           9 199 685           9 556 397



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 


                                                                                             Unaudited                                    Audited
                                                                                          Six months ended                             Year ended
                                                                                             31 December                                  30 June
                                                                                 2015                           2014                         2015 
                                                                                R'000                          R'000                        R'000
                                                                                                                                
Cash flows from operating activities
Operating profit                                                            1 705 212                      1 464 275                    2 129 056
Non-cash flow items                                                           352 214                        209 612                      512 207
Working capital changes                                                      (498 946)                       360 287                     (529 325)
  Inventories                                                                  23 683                        264 254                     (580 136)
  Trade and other receivables                                              (1 724 957)                    (1 317 924)                    (363 624)
  Trade payables and provisions                                             1 202 328                      1 413 957                      414 435

Cash generated from operations                                              1 558 480                      2 034 174                    2 111 938
Net financing costs                                                          (118 981)                       (86 591)                    (190 380)
Taxation paid                                                                (297 054)                      (243 896)                    (504 671)
Net cash generated from operating activities                                1 142 445                      1 703 687                    1 416 887
Net cash outflow from investment activities                                  (374 432)                      (382 684)                    (841 650)
Net cash inflow from financing activities                                       3 768                        215 984                      369 797
Dividends paid                                                               (411 553)                      (399 883)                    (745 680)
Increase in net cash, cash equivalents and 
  bank overdrafts                                                             360 228                      1 137 104                      199 354
Net cash, cash equivalents and bank overdrafts 
  at the beginning of the period                                              230 868                          7 335                        7 335
Exchange gains on cash and cash equivalents                                    40 036                         15 718                       24 179
Net cash, cash equivalents and bank overdrafts 
  at the end of the period                                                    631 132                      1 160 157                      230 868



SEGMENTAL ANALYSIS  
                                                                                      Unaudited                                     Audited                                      
                                                                                   Six months ended                              Year ended
                                                                                     31 December                                    30 June
                                                                               2015              2014            Change                2015         
Revenue from external customers                                               R'000             R'000                 %               R'000
     
Sales of alcoholic beverages
Republic of South Africa                                                  9 012 835         7 862 606              14.6          13 499 183
International                                                             3 162 443         3 086 867               2.4           6 002 238
                                                                         12 175 278        10 949 473              11.2          19 501 421
Other non-alcoholic items                                                    47 635            47 201               0.9              87 549
Consolidated revenue                                                     12 222 913        10 996 674              11.2          19 588 970


                                                                                      Unaudited                                     Audited                                      
                                                                                   Six months ended                              Year ended
                                                                                     31 December                                    30 June
                                                                               2015              2014            Change                2015         
Operating profit                                                              R'000             R'000                 %               R'000

Republic of South Africa                                                  1 719 161         1 418 577              21.2           2 216 159
International                                                               497 996           560 803             (11.2)            843 913
                                                                          2 217 157         1 979 380              12.0           3 060 072
Corporate services                                                         (511 512)         (510 221)              0.3            (925 701)
                                                                          1 705 645         1 469 159              16.1           2 134 371
Other losses                                                                   (433)           (4 884)            (91.1)             (5 315)
Consolidated operating profit                                             1 705 212         1 464 275              16.5           2 129 056



NOTES

                                                                                            Unaudited                                  Audited
                                                                                           31 December                                 30 June
                                                                               2015                           2014                        2015 
                                                                              R'000                          R'000                       R'000

1. Sales volumes (litres '000)                                              397 668                        369 223                     653 670


2. Net interest-bearing borrowings

   Interest-bearing borrowings
   Non-current                                                            3 494 691                      3 143 095                   3 323 446
   Current                                                                1 255 386                        479 357                     870 378
                                                                          4 750 077                      3 622 452                   4 193 824

   Cash and cash equivalents                                             (1 301 132)                    (1 160 157)                   (619 367)

                                                                          3 448 945                      2 462 295                   3 574 457

3. Cash outflow from investment activities

   Purchases of property, plant and equipment (PPE) 
     to maintain operations                                                (172 025)                      (165 814)                   (321 801)
   Purchases of PPE to expand operations                                   (239 600)                      (139 926)                   (446 580)
   Proceeds from sale of PPE                                                  3 460                          6 842                      14 550
   Purchases of financial assets and associates                                   -                       (111 338)                   (111 428)
   Proceeds from financial assets                                            47 774                         38 448                      44 159
   Purchases of intangible assets                                           (14 041)                        (2 925)                    (13 120)
   Acquisition of subsidiaries, net of cash acquired                              -                         (7 971)                     (7 430)
                                                                           (374 432)                      (382 684)                   (841 650)
                                                                                                    
4. Capital commitments

   Contracted                                                               641 354                        340 456                     411 334
   Authorised, but not contracted                                           698 007                        951 634                   1 052 387
                                                                          1 339 361                      1 292 090                   1 463 721

5. Depreciation of property, plant and equipment                            155 963                        148 023                     290 335


6. Net asset value per share (cents)                                          4 996                          4 149                       4 310


7. Segment report     
 
Operating segments were identified based on financial information reviewed regularly by management for the purpose of assessing performance and allocating resources 
to these segments. Revenue includes excise duty. 


8. Financial risk management and financial instruments 

Financial risk factors     
The Group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk
and price risk), credit risk and liquidity risk. 

The condensed consolidated interim financial statements do not include all financial risk management information and disclosures required in the annual financial 
statements; they should be read in conjunction with the Group's annual financial statements as at 30 June 2015. There have been no material changes in the Group's 
credit, liquidity and market risk or key inputs in measuring fair value since 30 June 2015. 

Fair value estimation     
Items carried at fair value are classified according to the fair value hierarchy, by valuation method. The different levels have been defined as follows: 

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities   
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly 
         (that is, derived from prices) 
Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) 

Available-for-sale financial assets are classified as level 1, 2 or 3, derivative financial assets and liabilities are classified as level 2 and biological assets are
classified as level 3. 

The fair value of non-current borrowings is calculated using cash flows discounted at a borrowings rate and this is classified as level 2. The fair value of current 
borrowings equals their carrying amount. 

There have been no transfers between level 1, 2 or 3 during the period, nor were there any significant changes to the valuation techniques and inputs used to determine
fair values since 30 June 2015. 

The fair values of all other financial assets and liabilities approximate their carrying amounts. 


OPERATING PERFORMANCE

Group revenue grew by 11,2% to R12,2 billion on a sales volume increase of 7,7%.

Domestic market revenue increased by a very pleasing 14,6%, with sales volumes up by 13,3%. This was despite a persistently challenging economy and a trading 
environment of curtailed consumer spending. The strong performance across all product categories reflects enhanced in-market execution, appropriate stock levels to 
meet demand, and stepped-up service delivery to our customers flowing from our sales force effectiveness investment. We also benefitted from some trade buy-in due to 
our decision to increase prices selectively in January rather than in February. The Group’s wine portfolio maintained its strong double-digit growth, while cider and 
RTD (ready-to-drink) brands accelerated volume growth. The spirits portfolio showed resilience, with a strong volume increase in several major categories. 

Sub-Saharan African markets, outside South Africa, delivered mixed results amid slower economic growth in the region. Revenue grew 1,2% on a sales volume decline of 
7,4%. Focus markets in Africa such as Namibia, Mozambique, Nigeria, Ghana and Zambia all recorded strong growth, but our overall performance was impacted by the 
challenging macroeconomic conditions in Angola. The region contributed 55,2% to foreign revenue.

Revenue derived from the sale of the Group’s brands in international markets beyond Africa grew 4,0%, mainly as a result of a weaker rand and an improved sales mix.
Volumes declined 15,4% given the continuing tough trading conditions in many of the markets where Distell operates. The spirits portfolio delivered revenue growth of 
12,4%. Revenue of the wine portfolio declined by 7,0% on 14,8% lower volumes due to lost summer promotional slots in some European markets following our limited trade 
recall in May last year.

The financial results for the period, supported by strong overall revenue growth and efficiency improvements across the business, also benefited from a substantially 
weaker rand against the major currencies in which Distell trades. Operating expenses rose by 10,4% due to the continued investment in key strategic initiatives and 
selected markets where we see growth opportunities. The operating profit margin increased from 13,3% to 14,0%.

Net finance costs declined from R126,7 million to R123,9 million.

The effective tax rate decreased marginally to 28,5%.

Normalised headline earnings and operating profit, excluding other losses of R8,9 million arising from the remeasurement of the contingent purchase consideration for 
Burn Stewart Distillers (BSD) the previous year, increased by 16,8% and 15,8% respectively.

Reported headline earnings increased by 17,8% to R1,2 billion and headline earnings per share increased by 17,7% to 531,5 cents. Operating profit increased 16,5% to 
R1,7 billion.


INVESTMENT AND FUNDING

Total assets increased by 21,0% to R21,6 billion.

Investment in net working capital increased by 31,5% to R7,2 billion, driven to a large extent by the conversion of foreign assets to the reporting currency. 
Inventory increased by 21,2% to R8,0 billion. If foreign currency movements are excluded, inventory increased by 12,3%. Of this, bulk spirits in maturation, planned 
in accordance with the Group’s longer-term demand projections, grew 8,8% to R3,2 billion. Bottled stock and packaging materials reflect an increase of 12,5% on the 
previous year.

Capital expenditure for the period amounted to R411,6 million (2014: R305,7 million) of which R172,0 million was spent on the replacement of assets. A further 
R239,6 million was directed to the expansion of capacity, mainly in relation to the Group’s cider manufacturing facilities.

Cash retained for the six months amounted to R360,2 million (2014: R1,1 billion). The Group remains in a strong financial position, as shown by a debt to 
debt-plus-equity ratio of 23,7% (2014: 21,1%) and a debt-equity ratio of 31,1% (2014: 26,8%) at the end of the reporting period.


PROSPECTS

The macroeconomic outlook for the remainder of the financial year remains very challenging amid volatile trading conditions in many of our key markets. While a modest 
recovery is expected in the developed world, emerging economies continue to show slow growth. On the domestic front, consumer spending will be adversely impacted by 
expected higher inflation, the hikes in interest rates and rising food prices. Tougher trading conditions are therefore expected in the second half of the financial 
year.  

The Group nevertheless continues to pursue its long-term strategy to grow shareholder value, but we are reviewing the sequencing and the pace of investment due to the 
sharp slowdown of growth in certain markets. 

We remain well-positioned to take early advantage of any improvements in the economic conditions of the markets where we operate, given our versatile portfolio of 
strong, appealing and diverse brands, our capacity to trade across a spectrum of markets at a range of price points, and the security of our financial position.


DIRECTORATE

Ms EG Matenge-Sebesho and Dr DP du Plessis have been appointed as non-executive directors with effect from 25 November 2015, and Mr JG Carinus resigned as non-executive
director with effect from 28 October 2015. Mr LC Verwey has been appointed as Group finance director with effect from 1 September 2015, and as executive director with effect
from 25 January 2016 to succeed Mr MJ Botha who retired at the end of December 2015. Dr E de la H Hertzog resigned as non-executive director with effect from 17 February 2016.


CASH DIVIDEND DECLARATION

The directors have resolved to declare a gross cash dividend, number 55, of 165,0 cents (2014: 158,0 cents) per share for the interim period ended 31 December 2015.

The dividend has been declared from income reserves. The dividend withholding tax, levied at 15%, will amount to 24,75 cents per ordinary share. As a result, ordinary 
shareholders who are liable to pay dividends tax will receive a net dividend amount of 140,25 cents per share. Shareholders exempt from paying dividends tax will receive 
165,0 cents per share. The issued ordinary share capital as at 17 February 2016 is 222 109 356 (2015: 221 737 356) ordinary shares. The company's income tax reference 
number is 9115001712.

The dividend will be payable to shareholders on record on Friday, 18 March 2016, and will be paid on Tuesday, 22 March 2016. The last day to trade cum dividend will be
on Friday, 11 March 2016, and shares commence trading ex-dividend from Monday, 14 March 2016. Share certificates may not be dematerialised or rematerialised between 
Monday, 14 March 2016, and Friday, 18 March 2016, both days inclusive.


BASIS OF PREPARATION, ACCOUNTING POLICY AND COMPARATIVE FIGURES

The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34 Interim Financial Reporting, 
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, 
the requirements of the Companies Act of South Africa and the JSE Limited (JSE) Listings Requirements. The directors are responsible for the preparation of the interim
financial statements, prepared under supervision of the Group finance director, LC Verwey CA(SA), CFA.

The accounting policies applied in the preparation of the interim financial statements are in terms of IFRS and are consistent with those applied in the previous 
consolidated annual financial statements.

The Group has adopted all new and amended accounting pronouncements issued by the International Accounting Standards Board (IASB) that are effective for financial 
years commencing 1 July 2015. None of the new or amended accounting pronouncements that are effective for the financial year commencing 1 July 2015 has a material 
impact on the consolidated results of the Group.


Signed on behalf of the board

DM Nurek              RM Rushton
Chairman              Managing director

Stellenbosch
17 February 2016


Directors:               DM Nurek (Chairman), PE Beyers, GP Dingaan, JJ Durand, DP du Plessis, E de la H Hertzog, 
                         MJ Madungandaba, EG Matenge-Sebesho, LM Mojela, CA Otto, AC Parker, RM Rushton (Managing director), 
                         CE Sevillano-Barredo, BJ van der Ross, LC Verwey (Finance director)

Company secretary:       L Malan

Registered office:       Aan-de-Wagenweg, Stellenbosch 7600

Transfer secretaries:    Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg,
                         PO Box 61051, Marshalltown 2107

Sponsor:                 RAND MERCHANT BANK (A division of FirstRand Bank Limited)



www.distell.co.za


Hunter's, the biggest cider brand in South Africa, launched Hunter’s Extreme Bold with an exciting 
#GOBOLD campaign in July 2015. This natural energy alternative delivers the refreshing taste of apple 
with a bold kick of Guarana. The new premium black 440 ml can also offers better value to consumers. 
The Hunter’s Extreme brand doubled in volume over the last 12 months, making it the most popular 
alcoholic energy drink in South Africa.

4th Street is a range of easy-to-drink, naturally sweet wines for younger consumers who aspire to the 
sophistication of drinking wine, but without its daunting complexity. Since it was launched in 2009, 
the range has been a resounding success and exceeded all expectations when it was named South Africa's 
biggest wine brand in November 2015. The 4th Street range includes sweet rosé, red and white varietals 
which are available in a 750 ml bottle, three and five litre bags in boxes (BIBs), as well as an 
innovative 330 ml single serve.

Sedgwick’s Original Old Brown is celebrating a century of rich heritage, character and tradition. 
Since it was launched in 1916 as the first ‘old brown’ to be produced in South Africa, this legendary 
fortified wine has been enjoyed by many generations. Affectionately known as “Obies”, Sedgwick’s is 
still made according to the original recipe, and continues to play a role in creating memories and 
stories of great moments shared.

Scottish Leader, the modern, award-winning blended Scotch whisky, defies convention with the 
‘new perspective’ it brings to whisky consumers. Scottish Leader is carefully crafted by a forward-thinking 
and creative blending team with over 300 years of combined experience. It boasts new, more contemporary 
packaging for both the smoother and more accessible Original varietal, as well as the recently launched, 
smoky Signature variety – a unique offering which is taking the brand to new heights.

Nederburg is the leading brand in Distell’s premium wine portfolio, and is sold in 80 countries. To maintain
its dynamism and relevance, it continues to pioneer new wine-growing areas, wine styles and ways of 
communicating with consumers. Its enticingly different above and below-the-line campaign steps outside the 
mainstream, inspiring curiosity while accenting the sensory. The fresh new packaging emphasises Nederburg’s 
pedigree and its progressiveness.

Zonnebloem is testimony that classic craftsmanship endures. The brand produces wines of elegance with 
great ageing potential. The grapes from which the wine is crafted are sourced from trusted Stellenbosch 
growers, many of whom have been delivering to its cellars for generations. 



Date: 17/02/2016 01:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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