Wiseman Khuzwayo
A CHINESE investor has bought a 51 percent stake in Swartland Winery, one of South Africa’s wineries in Malmesbury in the Western Cape, it was announced on Friday.
Businessman William Wu bought Swartland for an undisclosed sum and the transaction was approved by the winery’s 70 shareholders.
The deal is subject to a due diligence process.
Wu, whose interests in the electronics business brought him to South Africa in the early 1980s, is also invested in Paarl winery, Veenwouden.
Wu owns the biggest security company in China.
Founded in 1948, Swartland crushes 25 000 tons of grapes annually, supplying a diverse selection of packaged and bulk wine to local and international clients.
Wu said his decision to invest in Swartland was driven by the fact he was coming to the winery with a market for the product.
“The market is in China, where I already have a ready demand for the quality and volume of wine Swartland produces,” he said.
Wu said Swartland was a great investment. Its infrastructure, including bottling, warehousing and distribution, offered total control of supply and a one-stop shop for exporting to the Far East as well as continuing to service global and local markets.
“It has access to good, well-farmed grapes and is one of the few South African wineries of this size, where the majority of grapes planted are red varieties, in which the Chinese market is interested.”
As the new chairman, Wu will be directly involved in operations.
He said: “Due to recent developments which have led to the wine world’s overwhelming interest in the Swartland region, the marketing opportunities for this winery in the developing Asian markets are limitless and we will most definitely tap into the excitement surrounding this region, which some international wine critics are calling the most exciting wine region in the world.”
Outgoing Swartland chairman Frans Maritz said the deal heralded a new chapter in the history of the Swartland wine region.
He said the investment by Wu would allow Swartland to unlock value for member farmers, with new markets in China, which came at a time when the Swartland brand was also making inroads in the European and African markets.
“The energy and insight of our Chinese partner and his association with China are going to rejuvenate the Swartland brand.”