The vineyard has been purchased for an undisclosed sum as a going winery concern, and shall continue to run as a fully fledged wine operation.
"We are very happy with this development," says Sep Malherbe, Chairman of Franschhoek Vineyards. "Our responsibility is to secure the long term future of Franschhoek Vineyards as an integral part of the Franschhoek valley. DGB offers the business a strong local and international route to market. Their viticultural and winemaking resources and expertise will help the business lift its quality levels and adapt wine styles to market trends creating a win/win relationship with the farmers going forward.”
With two of its company-owned wine brands - Bellingham and, most recently, Boschendal - rooted in Franschhoek, DGB considers Franschhoek an important historical landmark for the company. DGB Chief Executive Officer, Tim Hutchinson says, "The strategic purchase of Franschhoek Vineyards extends the company's investment in the valley and reflects our optimism in the growth potential of the South African premium wine industry. Since our acquisition of the Boschendal winery two years ago our international volumes have more than doubled off a significant base in the last 12 months. AC Nielson in the UK report the South African category in the retail trade growing at 4.9% in value terms yet Douglas Green wines grew at 25.4% and Boschendal at 118%. We are very excited at the potential of the Franschhoek Cellars wine brands which we can plug into our already well established local and international network and play a leading role in placing Franschhoek firmly on the world wine map."
Franschhoek Vineyards was founded in 1945 when local growers in the valley formed a co-operative for the vinification of their grapes. In recent years, the winery has changed from a co-operative and operates as a respected private producer. The quality and value of the Franschhoek Cellar wines is well known, further exemplified by the strong relationship with top end South African retail group, Woolworths, who have consistently commissioned several of their wines with the cellar.
The Franschhoek valley is considered the food and wine capital of the Cape winelands, with wine tourism set to boom in coming years. With the winery's location at the entrance to the village, the wine shop and tasting centre at Franschhoek Vineyards is a critical shop window. "Given the prime real estate location, there was considerable interest from property developers," comments Sep Malherbe. "However our interest was to ensure that it remains a wine operation that can add value to the Franschhoek valley and partner to the local growers."
"The winery and cellar door shall be a focus area dedicated to providing a memorable and hospitable experience of Franschhoek," says Jacques Roux, DGB Marketing Director. "DGB welcomes Franschhoek Vineyards with characteristic energy, enthusiasm and passion dedicated to all our wine brands."
