/ 21 October 2003

Bottling empowerment

In what is expected to be one of the largest events in the industry in 2003, the South African wine industry is set to hold its first-ever black economic empowerment (BEE) transformation conference under the auspices of the South African Wine Industry Trust (SAWIT) and the South African Wine and Brandy Company (SAWBC), in order to develop a Wine Industry BEE Charter.

The conference, scheduled to take place on October 31 and November 1 at the Cape Town International Convention Centre, is expected to be attended by 300 representatives from every level of the wine industry, including related bodies and communities such as the South African Department of Agriculture, commercial representatives, black entrepreneurs, local community representatives, wine producers, cooperatives and distributors.

According to SAWIT chairperson Gavin Pieterse, the new BEE charter would be aligned to the South African government’s global BEE charter, with the key focus on devising realistic transformation solutions that would ultimately deliver tangible empowerment results.

“Less than one percent of South Africa’s wine industry is currently black-owned, an indication that transformation in the sector is long overdue,” he said.

“The conference is an ideal opportunity for all key role-players to contribute to the formation of a meaningful black empowerment charter and will act as a catalyst facilitating authentic transformation.

“Actual transformation in this sector has been non-existent; the conference will be the first serious step towards making this a reality for all stakeholders.

Transformation can only be achieved if proper governance is instituted, new ownership is encouraged and supported, and poverty alleviation is proactively addressed, and if skills development is viewed as a critical imperative.”

Pieterse explained that the conference would be used as a platform to debate the successes and failures of BEE within the wine industry, and to devise workable, practical BEE and transformation solutions. SAWIT believed that this would ultimately allow it to achieve one of its goals — the entry of previously disadvantaged individuals and groups into the mainstream by providing them with the necessary step-up to proactively grasp economic activities and opportunities offered by the industry at large.

SAWIT was set up in 2000 by contributions from wine and spirits producer KWV and the South African government. It contains two section-21(non-profit) companies — a business support company, Busco, and a development support company, Devco — as well the Wine Education Fund. Busco conducts research and helps with technology development in the industry, as well as generic promotion of South African wines internationally, while Devco focuses on social transformation through empowerment and development by providing direct financial support.

SAWBC, meanwhile, was established by the industry only this year as a vehicle for it to coordinate industry policy, among other objectives. Its board contains representatives from all parts of the wine community. – I-Net Bridge