Capitalising on buoyant spending among local consumers and establishing a stronger global footprint on the back of improved production and operational efficiencies, the South African wine and brandy company, Distell, reported 12.6% rise in revenue (6.7 billion rands) on a sales volume increase of 8.3%, fuelled by higher consumption of premium brands.

The company has declared a dividend of 85 cents per share compared with 67 cents in 2005. Besides big brands like Nederberg and Durbanville Hills, Distell produces Two Ocean wines, which are being imported into India by Sula.

Distell's Managing Director Jan Scannell said wine sales volumes, even though they did increase by 1.9%, were "hampered by increased competition exacerbated by a global oversupply and a strong rand that saw many producers return to the domestic market."

Both Durbanville Hills and Sedgwick Old Brown Sherry, however, had shown big growth, he said.

Total international revenue rose 14.8%. Defying the global trend that saw wine brands fight to retain position in an environment of protracted oversupply, Distell produced a remarkable growth in wine sales volumes of 20.3%, comfortably outpacing the South African wine industry's growth rate for the period.

"Although we did not do as well as we hoped in the UK , there have been several very encouraging developments in recent months. These include the appointment of a new distributor for several drive brands, including Nederburg, now listed by Morrisons and Waitrose supermarket chains," Scannell said.

Amarula, Distell's biggest spirits brand and also South Africa 's most widely distributed alcoholic beverage, recorded a growth of 12.1%.

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