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PRESS RELEASE
Contact: Louis Luyt Jnr
Phone: +27 (0) 32 946 3290 |
FOR IMMEDIATE RELEASE
7 June, 2011 |
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LUYT BREWERY SHUTS BALLITO OPERATIONS
Luyt Brewery will cease its Ballito operations from 30 June 2011, with LLG International, the Holding Company, selling the Brewery Assets to an independent entrepreneur and entering into an equity partnership with the continued brewing of Luyt Lager under License in Stellenbosch, Western Cape.
“The Luyt Brewery, and specifically the Luyt Family, would like to thank those customers who have unquestionably, wholeheartedly and independently supported the Luyt Brewery brands. The Brewery has had fantastic support from its selected suppliers and distributors for which we are truly and sincerely grateful. The Management also thanks our Luyt Brewery Beer Ambassadors for their tremendous loyalty to our brands, always supporting events and promotions, and enjoying the taste of freshly brewed Real Beer.”
“Most importantly, we thank our devoted staff members and consultants who worked tirelessly to create awesome beers, committing their hearts to the business and the culture of brewing, showing fantastic loyalty to the Company. Their dedication was exemplary and heartfelt.”
The decision comes as a result of a variety of reasons contributing to a very difficult and emotive conclusion. Some of the main contributors however were the difficult trading conditions caused by the ever increasing Local Authority Levies and Charges in concert with a lack of support from the local community for the consumption of Luyt Brewery Brands.
Luyt Jnr emphasized that “Businesses situated in Ballito and KDM are under severe stress and it is our belief that we can indeed achieve much better results with our assets in an area where there is more eagerness from a Local Authority to assist with the establishment fledgling industries. This, coupled with the other extraneous factors, led to the decision to relocate a cumulative investment of nearly R10 million which, of course, is now lost to the KDM region. With a relocation of this nature, job losses are also regrettably inevitable, and Luyt Brewery will unfortunately have to retrench at least 7 employees.”
A further critical factor also included the lack of support from the local community for a business of this nature. Luyt added, “It was our sincere belief when we established the Brewery in Ballito that residents would be proud of a local industry such as a Micro Brewery in its own ranks. The decision to establish the Brewery in Ballito was not taken lightly at the time. It was coupled with a substantial capital investment and, evidently, a misplaced expectancy of significant support from the local community. The Dolphin Coast economy has clearly not matured enough to absorb the commercial demands of such a venture.
LLG International will remain in equity partnership with Deon Engelbrecht, formerly from PSG Consult, in transposing and re-establishing the Micro Brewery with a Restaurant in the new Woodmill Development in Stellenbosch, developed by the Steinhoff Property Division. The Brewery will be known as StellenBräuhaus, interlinked with the Stellenbräu Restaurant which will proudly brew, carry and distribute the Luyt Lager brand under license.
LLG International will continue to focus on its various other portfolio investments including a farm in the Western Cape that produces Export Table Grapes and various other commodities such as cattle, sweet corn and wheat.
For more information please contact Louis Luyt Jnr at 032 946 3290.