South Africa’s leading wine-producing company, Boland Vineyards International, on Friday announced the sale of a 26% stake to an investment firm owned by black women.
”The new company [Boland Basadi Investments] will handle 80% of our wine sales,” Boland Vineyards International chairperson Jannie le Roux said.
The new deal is seen as a groundbreaking black economic empowerment (BEE) agreement as it will allow more black women to enter the wine industry, which until now has been predominantly a white, male domain.
Boland Basadi Investments will acquire 26% stake of the Paarl-based prestigious wine producer, which is situated in one of the Cape’s oldest wine regions.
Another 10% will be allocated to a workers’ trust that is owned by Boland’s cellar workers.
”We are still finalising some contents of the deal. It runs into a couple of millions but I cannot tell you the actual figures at this stage,” Le Roux said.
”We are already facilitating land-ownership initiatives at producer level by working with some of our larger suppliers to introduce [empowerment] land-ownership schemes on their farms while negotiating with others to acquire land for employees of Boland to produce grapes we will process,” said Le Roux.
”We are reserving 25% of Boland’s shares for future BEE producers and farm workers,” he said.
The deal will see the BEE company handling Boland’s sale and marketing of wine exports, procurement, bottling of wines, and warehousing, according to Le Roux.
This deal is in line with South Africa’s BEE policy of wanting previously excluded blacks to participate in all sectors of the economy.
President Thabo Mbeki has made BEE a priority of his government as it seeks to address some of the inequalities of decades of apartheid rule in South Africa.
In a statement, empowerment representative Namane Magau said the empowerment investment firm wants to promote broader participation of South Africans in the economy.
”We have been searching for a suitable partner in the wine industry with which we can combine our considerable knowledge and experience in the business world,” said leading businesswoman Magau.
”Through business initiatives we aim to promote alliances and communities which will strengthen participation of the broader South African communities in the wine industry,” said Magau. — Sapa-AFP