South African drinks company KWV is to take over from RGBC as the exclusive distributor of Stolichnaya Premium Vodka and ‘elit’ by Stolichnaya from 1 January 2015.

 

Stoli Group – part of SPI Group – is to extend their strategic agreement with KWV to include South Africa and a further eight markets in the region.

 

SPI currently distributes KWV wines in the Baltic Region through its sister company Amber Beverage Group, and so the move is seen as strengthening the international relationship and also a positive development to the portfolio.

 

Robert Cullins, Commercial Director – International, of Stoli Group says, “After significant growth across the world in 2014, we are very excited to embark on this new pan-regional deal with KWV. We see enormous potential for Stoli, and look forward to bringing our products to new customers in the market with exciting consumer promotions and a dedicated trade-engagement program.”

 

According to the 2013 SAWIS report on Liquor Consumption Patterns, the vodka market has seen structural change over the past two years with an increase in super premium products selling at R150+ per bottle. In 2010/2011 these products had only 1.8% share of the vodka market, but this has now increased to 7.5%.

 

“The South African market is very receptive to premium vodka compared to some other markets and the segment is showing massive growth in South Africa where it is becoming increasingly popular,” says Anneke Mackenzie, KWV’s Global Portfolio Manager, Spirits.

 

“Stoli is currently the world’s fifth largest premium vodka brand, showing substantial growth and an increase in footprint and we are delighted to add this authentic brand to our distribution portfolio. Both companies are very positive in building a strong relationship and we will look at expanding our cooperation in other areas.”

 

Werner Swanepoel, KWV Sales Director, Spirits adds, “The SA liquor industry has become extremely competitive, with new trends, categories and brands entering the market.

 

“With globalisation, the SA consumer is looking for new and trendy products, mainly driven by international brands. With Stoli and Lucas Bols (for which KWV has also signed a distribution agreement) added to the KWV portfolio, this extends our entry into new categories and new channels. These products also contribute to our drive to increase our overall premium offering.”