Flagstone flies high 9 October 2007

Vast international company buys Bruce Jack’s winery

In an announcement that is almost as extraordinary as it is unepected, Constellation, the world's largest wine company (and owner of the Kumala label, top South African brand in the UK), has revealed that it has made a deal with Bruce Jack, including the purchase of his Flagstone Winery. Jack will also take on responsibility for Kumala.

The surprise announcement  was made in London at Wosa’s Mega Tasting of South African wines. If the deal goes through, it means a notable investment in the Cape wine industry by a very big player. The move is significant because Kumala sales have slipped somewhat since Constellation acquired the previous owner of the brand, Canadian company Vincor International.

James Reid, now operations director of Constellation Wines South Africa,  said the proposed acquisition of Flagstone is part of his company’s strategy to increase its market share of South African wines in all its core markets, including the USA and European Union. He sees Bruce Jack as the person for this “major destination marketing drive”.

Constellation has been considering extending its portfolio beyond Kumala into premium and luxury brands for some time, he said. ‘Kumala competes successfully at the volume-driven, lifestyle sector of the market. We have been looking to build our South African range to meet the global demand for premium wines, hence the proposed acquisition of Flagstone. It will be a base for a premium portfolio for Constellation.’

British wine guru Jancis Robinson, reporting on the deal on her website, remarks that ‘Compared with the rather parochial nature of most Cape wine producers, this is all a bit grown up…’ She reports from the Wosa event that Jack ‘is clearly enthused by the possibilities’.