KWV WINES SHAREHOLDER’S REPORT
BY: MARINA YUROVA
KWV is one of the most famous and leading “wine and spirits” producing company in South
Africa. Founded in 1918 as a winemaking co-operative, by wine makers from the Western
Cape in South Africa. Today it is well-known global brand producing wine and spirits with a
rich historical background and large variety of high quality wine.
The main competitors of KWV are:
All of them are situated in South Africa but they distribute globally. However, there are a lot
of differences in price, quality and beverage range. In positioning maps ...view middle of the document...
The strategic alliances, joint venture; acquisition by Niveus in 2012 (55%
investments).More than 60% of KWV’s shares are now owned by entities that have
Although the company uses several strategies to improve their business, the main
strategy is a differentiation strategy, which lead to KWV growth into a global
producer of over 100 products. brands having collectively earned over 300 awards in
the past year alone. KWV named SA champion at 2015 SA young wine awards.
The International Wine Industry: Global Experts Vision 2034 collected the results from
the discussion about the central changes in the wine industry in the upcoming years:
In 2034 consumers, not producers, will dominate the wine industry
The distribution is further polarised, supermarkets are even more dominant
North America and China are the main investment targets
The packaging and regulations will play a major role
KWV: Sales Revenue 54% South Africa, EU & UK 31%, ROW 15%. Operating profits
are: SA 3%, EU&UK 25%, Africa 17%, ROW 6%.
Distell: Sales Revenue in SA 68.9%, Revenue in Africa 15.7%, Revenue International
14.9%, Operating Profit+6.5% Dividends/share 188cents, Sales Volume +5.7%,
The United-Kingdom is one of the three largest economies in Europe, after France
and Germany (Cia WorldFactBook, 2013). Its GDP per capita (PPP) is $42,000,
composed at 78.9% of services, 20.5% of industry and only 0.7% of agriculture (Cia
WorldFactBook, 2013).The United Kingdom wine’s market has always been a very
interesting market for winemakers as they are considered unbiased. The UK does not
produce wine and therefore does not need to defend any national industry. Wine that
succeeds here will be noticed elsewhere in the world. For all of these reasons,
Differentiation strategy in the UK still needs to be refined as there is not a lot of
bargaining powers with the local retailers. Cost-efficiencies still remain of utmost
Like most BRICS countries,...