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COMPANY HISTORY
The
South African Premium Wines business concept has been in development for
more than five years. The concept was born in 1998 when the Celliers
family recognised the fact that South Africa, emerging from its
apartheid past, had enormous growth potential in exporting goods and
services to international markets, particularly to countries with
limited historical exposure to South Africa. A love for wine and close
relationships within the South African wine industry, led to the further
exploration of exporting premium South African wine to the United
States.
A small concept rapidly
developed into a very ambitious business plan when Norman Celliers
assisted his family in further developing the concept while reading for
his Masters degree in Business Administration at the University of
Oxford, England. As part of their studies, Norman together with the
invaluable assistance of three fellow MBA students, two Australians and
one American, took a fresh look at the business concept and explored its
full potential. Over a period of six months, the business potential grew
beyond all expectations and the team of MBA students developed a ground
breaking business plan that won numerous awards at international MBA and
Venture Capital competitions in both the UK and USA.
Having raised limited seed
capital, the team proceeded to turn theory into practice and they
immediately commenced product and brand development. Firstly, extensive
negotiations with a number of South Africa’s leading wholesale-producers
resulted in the structuring of comprehensive supply agreements. This
gave South African Premium Wines access to sufficient quality and
quantity wine supply to develop and grow high-volume brands. Secondly, a
leading british design agency assisted the team in translating their
vision and unique brand name into world class label and packaging
designs. Thirdly, the team travelled extensively through the US to
conduct focus group testing and meet with leading retailers and
distributors to gauge the potential of the chosen brand, product and
strategy. The reception was overwhelming.
However, due to the sudden
collapse of financial markets across the globe, the team failed to
secure sufficient capital to continue with the business and were forced
to seek alternative career options at the end of 2000. This resulted in
the unfortunate break-up of a dynamic management team as each member
returned to his respective home continent. Norman returned to South
Africa and joined the corporate world as a strategy consultant.
While gaining invaluable
business experience through a number of challenging projects across five
continents, Norman kept his vision and dream alive. He was determined
not to throw away all the valuable hard work that had been done and
believed that the fundamentals of his business plan were right. For the
next three years he used all of his spare time and resources and tried
tirelessly to raise the needed capital. He travelled to the US a number
of times and had further encouraging meetings with leading distributors.
In January 2003, Norman finally made a break through. He raised further
equity capital from prominent South African business personalities and
started negotiations with one of the world’s largest companies, BAE
SYSTEMS, and the South African Department of Trade and Industry. He
informed them of his ambitious plans and convinced them of the
opportunity, not only for his company but also for the South African
wine industry as a whole. After months of negotiations, he succeeded in
putting the final piece of the puzzle in place, sufficient capital to
fulfil on orders of one million cases per annum.
In September 2003, Norman
signed the final agreements with his financiers and officially
kicked-off South African Premium Wines (Pty) Ltd. After more than five
years of hard work, the time had finally arrived…
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