Leopard's Leap Wines in major wine deal with Chinese
By Leopard's Leap Wines
Leopard's Leap Wines has concluded a major joint venture with Yangzhou Perfect Co. to dramatically increase the export of South African wine to China, one of the fastest growing wine markets in the world.
The partnership with Yangzhou Perfect, a division of Perfect (China) Co., will see nearly 2.9 million bottles of South African wine shipped to China by June 2012, Leopard’s Leap CEO Mr. Hein Koegelenberg said, adding that this represented a massive addition to the nearly 3.9 million bottles of South African wine shipped to China in 2010/2011.
Mr Woo and Mr Koegelenberg
The joint venture will be called Perfect Wines of South Africa and will be 51 percent owned by Yangzhou Perfect and 49 percent owned by Leopard’s Leap Wines. The joint venture will own the L'Huguenot wine brand as well as act as a distributor for other wine brands including Leopard’s Leap, La Motte and De Klerk Presidential Blend.
“Three years ago we identified Asia as an export destination for our wines,” Mr. Koegelenberg said, adding the growth in annual exports of South African wine from 1.2m to 4.5m litres in three years supported the decision to look east.
Mr. Koegelenberg estimated that Leopard’s Leap and La Motte, of which he is also the CEO, are responsible for about 10 percent of South African wine exports to Asia.
Perfect (China) President Mr. Woo Swee Lian said he also saw the potential of South African wine in China. “I see the potential of quality wine from South Africa. The base is still small, but I want to be part of this growth,” Mr Woo said.
The South African wine will be distributed via the 5 000 outlets of Perfect (China), a consumer product and health food company that recently branched into wine.
“Perfect China launched our first wine from China in end 2010,” Mr Woo said. “I am satisfied with the market response. I believe through our network of Perfect (China), we can offer more top quality wine. This will now be a wine from South Africa.”
“I think the ability to provide consistent supply at reputable quality, is to the advantage of South Africa,” Mr Woo added.
Mr Woo said the joint venture with Leopard’s Leap was a strong partnership “because it is based on our friendship between our families that is based on respect and trust. When I first went on a visit to South Africa at the beginning of this year, and I saw the commitment of La Motte and Leopard’s Leap with their social responsibility, I knew that we have a lot in common as it is also the philosophy of Perfect China.”
Mr Koegelenberg concurred, saying “We have the same business philosophy of trust, respect and commitment to social responsibility.”
The jointly owned L'Huguenot wine brand is named after the French Huguenots who fled to South Africa in the 17th century to escape religious persecution in France. They settled in a corner of the Cape winelands which was named Franschhoek (meaning the French Corner). Franschhoek is the home of both La Motte and Leopard’s Leap.
The L’Huguenot range will comprise a Shiraz, a Shiraz Pinotage and a Chenin Blanc.