Overview: CVH Spirits is reintroducing its single-malt portfolio, including Bunnahabhain, to the South African market following a significant restructuring of the local spirits landscape. CEO Ronan O’Rahilly aims to grow the company’s contribution from 1-2% to roughly 2-4% within three years through this new distribution arrangement.
The Full Story
The group is bringing its Bunnahabhain, Deanston, Tobermory and Ledaig single-malt whiskies back after brands fell out of the local distribution network during the 2023 transaction in which Heineken acquired Distell. CVH was created when Distell International’s spirits assets were carved out of the enlarged Heineken business. O’Rahilly noted that Heineken’s strategic interest focused on acquiring Distell’s South African business and strengthening positions in cider and ready-to-drink beverages, whereas the international Scotch portfolio fit better outside Heineken.
The separation allows CVH to make decisions more quickly and focus investment on Scotch whisky markets. Italian spirits group Campari Group took a minority stake in CVH in 2024, while Remgro remains the majority shareholder. O’Rahilly was part of Distell’s mergers & acquisitions team during the transaction that carved out the spirits assets.
Production & Profile
The company is focusing on single malts rather than competing primarily on volume. Each brand possesses its own production methods and flavour profile. Bunnahabhain has an established presence from its time under Distell, while Deanston is positioned at a more accessible price point for consumers familiar with Scotch who want to move into single malts. Tobermory and Ledaig target consumers looking for more niche whisky styles and flavour profiles.
CVH has invested close to £30m over the past five to six years in its East Kilbride facility in Scotland, consolidating bottling, blending, warehousing and related production operations at the site. Further investment would be considered if capacity becomes constrained.
Brand & Industry History
The return follows the breakup of Distell and the subsequent acquisition by Heineken. CVH Spirits is a Scotland-based premium spirits company aiming to double South Africa’s contribution to its business over the next three years. Remgro serves as the majority shareholder, while Campari Group holds a minority stake in the company since 2024.
What This Means
The push into South Africa comes as the global whisky and spirits market remains under pressure due to high inflation, changing drinking habits, and health consciousness. Premium and super-premium whisky has proved more resilient than value and mainstream segments. O’Rahilly identified Asia, Africa, the Middle East and South America as markets with potential, with India particularly important to the next phase of growth.
The company is not looking to add new whisky brands but is focused on expanding distribution for the existing portfolio and filling production capacity. The increasing use of GLP-1 drugs is also contributing to changes in alcohol consumption patterns in some developed markets.
Consumer Takeaway
This release offers access to established single malts like Bunnahabhain alongside niche styles such as Tobermory and Ledaig. Consumers can explore less familiar whisky brands while remaining within the premium segment, supported by a distribution strategy that prioritizes specific flavour profiles over volume competition.
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