Distell scraps UK distribution agreements

South African drinks groups Distell is to end its long-standing third party distribution contracts with SHS, Cellar Trends and Brand Phoenix in the UK.

Distell will directly manage the sales and marketing of its brand portfolio in the UK

As part of plans to strengthen its UK presence, Distell will directly manage the sales and marketing of its brand portfolio.

The firm is set to bring the distribution of its cider, Amarula cream liqueur and portfolio of South African wines in house from 9 January 2017.

After witnessing “continued momentum in South Africa and growth in key offshore markets”, in 2015/16, the firm has identified the UK as a “key region” for growth, and as a result has “significantly invested” in its infrastructure over the past six months, making a number of changes to its current European model.

The UK commercial team has been “expanded significantly” to provide coverage across all key trade channels – and further expansion is expected next year.

In addition, the Market Service team has been up skilled and increased in size to successfully oversee customer orders across the portfolio and throughout the UK from its base in East Kilbride, Scotland.

Distell’s European head office is also set to move into offices in Richmond, London from 10 October.

Joseph Walsh, commercial director at Distell UK and Ireland, said: “The decision to bring all our brands back under the Distell umbrella means that from 9 January 2017, Savanna, our wine and Scotch portfolios will be sold and marketed by our own team across the UK.

“This has been an extremely detailed and considered process and it reflects our confidence in the UK market and we look forward to strengthening our relationships in the UK trade as we look to drive value for the trade and consumers in the market.

“We have worked closely with all of our distribution agencies to implement a smooth and well executed transition. Each partner has helped grow our UK market share over a number of years and has shared our passion for our brands.

“We have enjoyed a very successful partnership with each of them and this is a strategic global decision, which is amicable with all parties and should not be perceived in any negative way for us to exit these relationships.

“We will continue to work together over the coming weeks a smooth integration for all of our mutual customers’ benefit.

“We would like to thank SHS, Cellar Trends and Brand Phoenix for their invaluable support, passion and commitment as brand custodians over the years and wish them every success for the future.”