Stoli swaps distribution in South Africa

Stolichnaya Vodka has switched its distribution in South Africa from RGBC to KWV as part of a strategy to strengthen the relationship between the two groups and expand into other areas.

The move will see KWV, one of the country’s leading wine and spirit producers, take on the white spirits market as the new exclusive distributor of Stolichnaya Premium Vodka and elit by Stolichnaya, for Stoli Group, part of the SPI Group.

Last month KWV recently signed a deal with Amber Beverage Group, a sister company of SPI, to distribute its wine and brandy portfolios in Latvia, Lithuania and Estonia.

Robert Cullins, global commercial director of Stoli Group, said: “After significant growth across the world in 2014, we are very excited to embark on this new pan-regional deal with KWV. We see enormous potential for Stoli, and look forward to bringing our products to new customers in the market with exciting consumer promotions and a dedicated trade engagement program.”

The super-premium vodka market has seen significant growth in the past two years with market share growing from 1.8% in 2010/2011 to 7.5% in 2013/14, according to the 2013 SAWIS report on Liquor Consumption Patterns.

Anneke Mackenzie, global portfolio manager for KWV, said: “The South African market is very receptive to premium vodka compared to some other markets and the segment is showing massive growth in South Africa where it is becoming increasingly popular.”

KWV will take over the distribution of Stolichnaya Vodka in the region from 1 January 2015.