Vinarchy in SA: global wine giant has big plans for South African brands

The giant new Vinarchy wine business includes two South African brands known for producing affordable bottles.

Straight after taking over Pernod Ricard’s still wine portfolio in Australia, New Zealand and Spain, Vinarchy confirmed the new brand has big plans for Flagstone and Kumala brands, which were previously part of Accolade.

Accolade was bought out of effective bankruptcy two years ago by a consortium of international backers led by global investment house Bain & Co.

Kumala’s wines are produced in several key areas within the Western Cape, including Olifants River, Paarl, Stellenbosch and Worcester.

Flagstone, based at Somerset West, occupies the site of a former De Beers dynamite factory an sources fruit from vineyards that stretch from cool Walker Bay region to the warmer Darling district.

The South African labels - which offer the benefit of lower production costs - are part of a stable of brands including Jacob’s Creek, Hardys, St Hugo, Petaluma, St Hallett and Orlando from Australia; Brancott Estate, Stoneleigh, Church Road and Mud House from New Zealand; and Campo Viejo, Ysios, Tarsus and Azpilicueta from Spain.

“South African wine is an important category for our retail customers, particularly in Europe and the UK,” said Ben Clarke, Vinarchy’s executive chair.

“Flagstone and Kumala cater to that market. Our brands will continue to have their own identities under Vinarchy, with the benefit of being part of a global network.

“Through our global distribution network, we are incredibly proud to share our wines in almost every corner of the world,” Clarke told drinksbusiness.

“Our portfolio has something to offer everyone and every hip pocket, from premium fine wine to some of the world’s most popular global brands.”

So expect to see more of the South African brands on the global stage - particular in supermarkets and at lower price points.

“Labour accounts for 60% of any vineyard’s operating costs, and in the South African context, we have sufficient labour,” says Dr Erna Blancquaert, a lecturer at Stellenbosch University.