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Cape Town - Transformation in the South African wine industry seems to be the next area for debate among Fin24 users.
The local wine industry, and its various challenges, was in the spotlight when Fin24 recently reported that wine farmers and producers are simply not making enough money and are therefore not planting any new vines.
This was one of the issues raised at the 10th annual Nedbank VinPro Information Day in Cape Town.
READ: Wine farmers actually plead for sustainability
VinPro is the service organisation for 3 600 SA wine producer and cellar members, striving towards their commercial sustainability, as well as that of the broader producer industry and its strategic role-players.
Fin24 user Craig is one of the Fin24 users adding his voice to the general debate.
"As a PDI [previously disadvantaged individual], I would like to know how one can break the massive stranglehold the white cartels have on the wine and spirits industry and the exports thereof," writes Craig.
Fin24 asked VinPro for some feedback and the organisation puts it into perspective as follows:
Transformation is regarded as one of the key components of the Wine Industry Strategic Exercise (Wise).
It is important that the pace of this transformation is sustainable. The aim of the Wine Industry Transformation Committee is to look into the best allocation of the 20% portion of the wine statutory levies that is allocated for transformation in the industry.
A transformation plan must focus on practical solutions and realistic targets, according to VinPro’s manager of transformation and development Johan Giliomee.
In the wine industry those with a turnover of more than R5m are required to comply with the AgriBEE scorecard. Enterprise development is seen as one of the big focus areas for transformation in the wine industry.
Transformation success stories in the industry include the Bosman Adama Trust with 260 black beneficiaries, Solms-Delta Wijn de Caab Trust with more than 200 beneficiaries, Koopmanskloof Vineyards with 691 beneficiaries and De Gorree Trust with 116 beneficiaries.
READ: Restaurants' mark-up of wine leaves sour taste
There are currently 52 land reform farms in the industry - at different stages of development. Here too sustainability and the establishment of new black owned farms are of utmost importance, said Giliomee, adding that black owned wine industries need better access to opportunities, partnerships and support across the whole value chain.
ALSO READ: Distell pays out to BEE shareholders
Wise places particular focus on promoting a collective approach, including with regards to funding from government. Here's an overview:
Transformation initiatives in general:
(Source: VinPro)
Ownership in the wine industry:
(Source: VinPro)
Enterprise development in the wine industry:
(Source: VinPro)
Skills development in the wine industry:
(Source: VinPro)
Socio-economic development, management control and employment equity in the wine industry:
(Source: VinPro)
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
