DURBAN – The Distell Group said its wine portfolio continues to feel the effects of the 2018 and 2019 drought as consumers flocked to hard spirits because of costs.
The multinational brewing and beverage company said in a trading guidance yesterday that its wine portfolio experienced overall flat revenue growth due to increased grape and wine prices being passed through to the consumer because of the drought effects on the 2018 and 2019 harvests.
“However, select mainstream and premium wine brands continued commendable revenue growth despite this,” the group said.
Distell produces brands such as Amarula, 4th Street, Hunter’s, Klipdrift, Nederburg, Richelieu, Savanna, Viceroy, and JC Le Roux.
Distell said its group revenue for the first quarter increased a single-digit but declined in its volumes compared to last year.