Competition Commission clears wine merger amid shifting tastes
Consumers are changing their drinking habits, drinking less alcohol yet buying premium brands.
Image: Freepik
The Competition Commission today approved Fine Wine’s acquisition of liquor distributor NGF, saying the deal is not expected to hurt competition.
Fine Wine is a new South African investment company owned by Global Beverage Holding Company, based in Mauritius. It has no existing operations.
NGF runs a wholesale and retail liquor business with outlets in Johannesburg, Cape Town, Durban and along the Garden Route, supplying everything from premium wines and spirits to soft drinks and party services.
While the Commission found no competition concerns, it attached conditions around skills development, investment and job creation.
The green light comes as South Africa’s beverage industry is seeing big shifts in how consumers drink and what they want.
For example, late last month, Namaqua Wines rebranded its distribution arm as Niew Beverages, signalling a fresh start and a move beyond boxed wine.
“People are consuming less alcohol but choosing to buy more premium brands, while the recently created no-and-low alcohol category introduces new consumers which we aim to cater to,” said CEO Koos van Dyk.
Niew Beverages now operates 11 branches across the country, employing 259 people and supplying all major liquor retailers.
Its portfolio includes Namaqua, Raindance, Four Cousins, Van Loveren and Ginologist, with a new spirits range from Sazerac.
‘Niew’, an anagram of ‘wine’, comes with the tagline Life Outside the Box, a nod to the company’s origins and its push into a more modern, premium market.
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