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SA WINE INDUSTRY
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EMPOWERMENT PROJECTS
  • African Roots markets the Seven Sisters wine brand, a tribute to the bond of sisterhood. The Brutus family lived in Paternoster on the west coast. The seven Brutus sisters and their baby brother left the tranquility of their fishing village at a very early age when the family was evicted from their home during the Apartheid years. Two decades later, the sisters reunited to create these wines, carefully selected to match their individual styles and personalities.
  • Alluvia Boutique Winery & Guesthouse’s Give Me A Chance Trust earmarks promising students from the nearby Kylemore community, and provides financial and moral support to help them achieve their goals. The foundation works to help these children realize their dreams by raising funds for scholarship programmes as well as establishing a network of strong role models to mentor these children.  
  • One of the newer initiatives is Bouwland. This Bottelary farm is now 74% owned by Deelnemings Trust – the 60 trustees are all workers at Bouwland, Kanonkop or Beyerskloof, which are all located in the Stellenbosch area. The Beyerskloof team, who worked with them on their very first vintage under new ownership, will assist them in managing this property which also features an upmarket guesthouse.
  • Blouvlei Wines, which derives its name from a picturesque valley near Wellington in the Western Cape, was established on the farm which is the home of Mont du Toit Kelder. It’s the brainchild of owner Stephan du Toit, who wanted to involve the farm’s workers in winemaking and sales. Most of the trust members were born in this valley. The company produces and markets easy-drinking, affordable wines.
  • Boland Vineyards International, which trades as Boland Kelder, and Boland Basadi Investments reached a groundbreaking BEE agreement in 2005 which led to the entry of high-powered businesswomen, including Dr Namane Magau and Dr Thandi Ndlovu, into the South African wine industry. In terms of the agreement, BBI acquired a 26% stake in a marketing, procurement and service company at present wholly-owned by Boland. Of the remaining shares, 10% were to be allocated to a workers' trust beneficially owned by Boland's cellar workers.
  • Bottelary Hills: Six wineries – Kaapzicht, Bellevue, Goede Hoop, Mooiplaas, Groenland and Sterhuis – joined together to launch their premium range and second label, M23 (the road runs through it), the wines for which are made in a joint effort between these farms in the Bottelary Ward.
  • Buthelezi Wines – Kulekhani Laurence Buthelezi, who hails from KwaZulu-Natal, established this company in 2002. His mentor, Jean-Vincent Ridon of Signal Hill, where he works as an assistant winemaker, encouraged him to make his own wine, bottled under the Tutuka label.
  • Cellar Hand is Flagstone Winery’s joint-venture range with employees and encompasses a red, the Backchat Blend, and a Chenin Blanc, both under screwcap.
  • Crossroads Wines is a Cape Town-based black empowerment company with an urban edge. The wines with their colourful labels are made by Cru Wines and include Imbongi Chenin and Shiraz, and Soweto White.
  • De Krans gave ownership of the houses on the farm to their permanent staff (both cellar and farm workers) who have been living in these houses for many years, and in some instances for generations.
  • Dominion Wine Company, the Stellenbosch-based producer of wine brands for direct marketing companies globally, sold 72% of its business to a Cape-based BEE investor consortium which also has interests in property, media, hospitality and agriculture. Anzill Adams, a well-known wine industry professional and MD of Dominion Wine Company, heads their wine investment interests. This transaction differs from other BEE deals in the Cape wine industry, according to Adams: 'By selling 72% of the shares in Dominion Wine Company to the Investor Consortium, a local BEE group, we have acquired a genuine partner whose investment goes beyond a financial transaction. They are also investing intellectual capital in our business and will have a significant role to play in our expansion plans over the next few years. This makes the deal particularly exciting.'
  • Epicurean Wines is the brand of Gauteng premier Mbhazima Shilowa and businessmen Moss Ngoasheng, chairman of Safika Investments and former economic adviser to President Thabo Mbeki, Mutle Mogase of Vantage Capital, and American Ron T Gault, formerly of JP Morgan.
  • Fair Valley is a 17 ha farm adjacent to Fairview in Paarl, purchased with government housing subsidies afforded wine farm workers and support provided by the neighbouring Fairview estate, whose owner, Charles Back, originated the scheme, intended to provide labourers with security of tenure. Fair Valley wines are made from grapes sourced elsewhere and then produced in the Fairview cellar. The intention is to build a Fair Valley dedicated cellar on the property. Income from the sale of Fair Valley wines is directed to a communal property association. Its revenue is augmented by income derived from cheese packing at Fairview Estate. In addition, cottages on Fairview are being converted to provide tourist accommodation and rentals charged will also go towards the property association.
  • The Freedom Road project, now completed, was structured to promote home ownership on a 14 ha farm in the Paarl area among wine farm worker households associated with Backsberg Estate for many years. Proceeds from the sale of Freedom Road wines, produced and bottled at Backsberg, were directed to this end. Workers are also taught financing, winemaking and marketing skills.
  • The recently opened Graham & Rhona Beck Skills Centre, situated at Madeba, the Graham Beck Robertson estate, will offer a wide variety of skills training opportunities to the predominantly rural Robertson community with the focus on educating and empowering people from previously disadvantaged backgrounds. The Skills Centre is another example of the Beck family’s continued commitment to investing for the future by enriching the next generation. It will focus on training and development for the youth (school and post-school), farm workers and cellar workers, female workers on farms, emerging entrepreneurs and small farmers, the under-employed and unemployed (e.g. seasonal workers) and the disabled.
  • On the farm Helderkruin (which translates from Afrikaans as 'clear summit’) in Stellenbosch, farm workers pick the raisiny grapes left at the end of the harvest, which they press the traditional way by foot to make port. All profits from the sale of the Worker' Vintage Port are used for development projects to uplift the workers and their families.
  • Imvula Wines (previously Sibeko Wines) has a joint-venture partnership with LGB Wine (Daschbosch, Groot Eiland and Badsberg wineries). CEO Thembi Tobi believes that the biggest potential for growth lies in the emerging black market.
  • Kholisa Wines is a new black emerging wine company which will rely on the proven skills of its diverse founder members to take advantage of the growing opportunities in the South African wine industry. The main business of the corporation will be the sales, import and export of wine and related products. It will be targeting the growing black middle class to tap into the vastly underdeveloped black wine drinking market before expanding into the export market. Kholisa Wines will buy in wine and bottle and market it under their own unique label.
  • Koopmanskloof in Stellenbosch is the biggest producers of Fairtrade wine as well as one of the most diverse in the winelands, placing it at the forefront of economic, social and environmental development. Besides having 520 ha of primarily bush vine vineyards, it also boasts a private 98 ha nature reserve and a dedicated community of 86 workers, who own 26% shares in the company as well as 100% of their own farm, Vredehoek. A further 18% of shares is owned by thee black non-executive directors, bringing Koopmanskloof (Pty) Ltd’s black ownership to 44% in total.
  • Kuyisa Wines (‘kuyisa’ literally translated means ‘dawning’) was founded with the aim of furthering black ownership and career opportunities in the wine industry. An empowerment company, 100% of its shares are held by previously disadvantaged entrepreneurs. Kuyasa negotiates joint ventures with the aim of developing and distributing brands at various price points for local and international markets.
  • La Motte, together with other Rupert family farms, constructed Dennegeur, a modern village for its workers in the town of Franschhoek. The design of the village, a short distance from La Motte, was based on input from the workforce and built to meet the needs of the individuals living there. Key to Dennegeur is the transfer of home ownership to farm workers, some of whom have spent their entire life working at La Motte. Apart from the family homes, Dennegeur has its own day care centre, a training centre, clinic and sport amenities.
  • LaThiThá Wines (the name is derived from the Xhosa ‘lathitha ilanga’ which means sunrise and is appropriate to the brand as it operates from the Langa township) is a 100% BEE-owned company founded by local members of the Langa community. Their intention is to promote tourism in Langa by establishing a winetasting and conferencing venue. The fertility doll, a symbol of new life, hope and opportunity, is the logo depicted on their labels. The gold in the logo represents the wealth of our land.
  • M’hudi Wines – Mohudi means ‘harvester’ in Setswana. The Rangaka family are advised by Jeff Grier of Villiera. They use grapes grown on their family farm in Stellenbosch and also source fruit from various other appellations.
  • Nedcor Investment Bank established a development trust to be used to promote health, education, housing, cultural and sporting activities among wine farm worker communities.
  • Several of the established projects were modelled on the New Beginnings venture, the first black-owned wine-producing farm in the country. Wine farm workers pool the housing subsidies granted to them by the South African government in order to replant vineyards allocated to them by farm owner Alan Nelson of Nelson’s Creek. In these types of ventures, farm owners also extend the use if their cellars, other production facilities and winemaking expertise to the workers to produce the special label wines. Workers are often actively involved in the marketing and export of the wines. Profits from sales are used to purchase parcels of wine farmland, build housing and facilities as well as for education and community projects.
  • New-entry wine farmers are also assisted in securing capital through a national project called NewFarmers, funded by local private sector investors, as well as foreign organisations. It advances agri-business among emergent farmers, while undertaking programmes to promote community development. NewFarmers is currently engaged in two wine farming projects in which workers are stakeholders. The one, Erfdeell (Afrikaans for inheritance) in Piketberg, involves the replanting of some 30 ha to noble red varietals, and the other, near Paarl is a smaller initiative on an olive plantation, where vineyards are also being planted.
  • Old Vines Cellars, South Africa's only women's empowerment winery from ownership through to production, was started in 1995 by mother and daughter team Irina von Holdt and Françoise Botha, and now employs some 24 women who are responsible for the production of wine and running the office.
  • Phambili, Wamakersvallei’s new BEE-initiative label, means ‘Moving Forward’ and is aimed at improving the well-being of members of the Phambili Workers Trust
  • Pumlani (‘sit down and relax’) – this 100% black-owned BEE venture was the realisation of a dream for farm labourer-turned-chairman Alfred Tshotoba, who was mentored by Zevenwacht where tasting and sales of the Pumlani wines take place, and Nomsa Tiyo.
  • Re’Mogo Holdings Ltd is an empowered holding company specialising in acquiring high-value agricultural prospects in line with the newly created Fruit and Wine Charter of South Africa. Its Setswana name means ‘standing together’ and captures the spirit of local involvement, sustainable development and skills transfer inherent within each of its projects. Re’Mogo’s management team is broadly representative, and through its dedicated professionals and wide range of knowledge and expertise aim to become leaders in the field of agricultural entrepreneurship.
  • Sagila Wines is the own-venture brand of Mzokhana Mvemve, winemaker for Cape Classics. The name refers to the traditional mace which his grandfather carried.
  • Empowerment brand Ses’Fikele (which means ‘We have arrived … in style!’) is owned by four black women, Nondumiso Pikashe, Jackie Mayo, Nomvuyo Xaliphi and Phelela Mgudlwa. Flagstone Winery’s Bruce Jack assists with sourcing grapes and vinification.
  • Sizanani is a Xhosa word, meaning ‘helping each other’. Bellevue Wine Estate and more than 80 of its staff from previously disadvantaged population groups have formed Stellenbosch Wine and Logistics (Pty) Ltd, which has its focus on upliftment and empowerment.
  • An innovative empowerment deal will see wine farm workers on three adjoining farms in Franschhoek in the Western Cape gain ownership of the one 76-hectare farm, with 40ha under vines. This farm will be home to some 22 worker families. Solms-Delta (Pty) Ltd is made up of three farms. Lubeck, owned by Richard Astor, Zandvliet-Delta, owned by Mark Solms, and Deltameer owned by the Wijn de Caab Trust. The beneficiaries of the Wijn de Caab Trust are the previously disadvantages residents and employees of the farm. The three farms are farmed as one unit and all profits are split three ways. A full-time social worker is employed by the Wijn de Caab Trust to ensure that the needs of the beneficiaries are taken care of. These include education – pre-primary, primary, secondary, tertiary and adult education; medical benefits; housing benefits - all the residents on the farm have either been given a new or a renovated house; counseling; transportation – a bus has been bought; recreational – a brass band, a walking club, a rugby team and basketball on the farm.
  • StellenRust empowered 70 permanent workers on their farm as majority shareholders in the vineyards on 100ha of the 400ha farm. The people benefiting from this BEE project pick and tread their own grapes in large tanks in order to produce their own wine.
  • Thabani, the Nguni word for ‘joyful’, was the first wholly black-owned company in SA with Jabulani Ntshangase, who pioneered the Wine Education Programme in 1995, and Trevor Strydom in the directors’ chairs. Based in the Cape winelands with a boutique blending cellar to be built in KwaZulu-Natal, Thabani operates throughout Africa. Part of Thabani’s commitment to the wine industry is to interest Africans into pursuing careers as oenologists and viticulturists. This enthusiasm has increased fourfold the number of black BSc oenology/viticulture graduates in SA.
  • The Thandi (Xhosa for ‘nurturing love’) label evolved through a partnership encompassing the South African Forestry Company Limited (Safcol), a state forestry owner; members of the Lebanon community in Elgin threatened by the imminent privatisation of the forestry body; a local winegrower, Paul Cluver; and an Anglican social development body. Workers on the farm producing Thandi wines purchased shares in the venture using their government housing subsidies. Vinfruco also holds a stake in the export marketing of Thandi wines and supplies mentorship. In addition to the workers and the remaining original partners, the other major shareholder is black-owned Umhlobo (Xhosa for friends). On 19 July 2004, the initiative came of age when Safcol announced the official handover of its shares to the remaining beneficiaries of the Thandi project. The original intention was to create forestry and fruit operations to sustain the community but the project was soon expanded to include wine farming. In addition to skills transfer, the project also promotes the establishment of health, welfare, educational and recreational services for the local community. In 2003, Thandi became the first wine brand in the world to achieve Fairtrade accreditation, a major milestone, followed by a gold medal at the International Wine Challenge in London. The original model has been so successful that wine farms in several regions are joining the Thandi initiative.
  • The company of wine people is involved in a number of social and economic developmental initiatives.  It is associated with Thandi Wines, one of South Africa's most important transformation projects. Started as a winemaking project to empower the Lebanon community in Elgin, Thandi has become a successful business venture benefiting a number of previously disadvantaged communities. In line with the company's progressive thinking, members of staff are offered a wide range of skills development opportunities, among them a trainee winemaker sponsorship and, on a broader level, an adult literacy programme. The company of wine people also makes bursaries available to learners, enabling them to attend the Senior Agricultural School in Stellenbosch. Physical provision for employees and their families includes the group's own medical clinic, and co-coordinating and arranging grants for the building of housing.
  • The House of Lindiwe – Lindiwe, ‘the one we have been waiting for’, is an African name bestowed on the child whose arrival has long been awaited. It’s a name which aptly portrays the entrance of black empowerment company Reinvest (Pty) Ltd, under the label Lindiwe, into the global arena of quality wines.
  • The Winery of Good Hope’s Land of Hope Trust was structured around sustainability that started with previously disadvantaged people in the vineyards and is set to have a widespread impact on these families for generations to come. The project aims to uplift PDI employees of the winery and their dependents and children. The primary object is educational and long-term social upliftment.
  • Thokozani, which means ‘celebrate’, is a partnership between Diemersfontein Wine & Country Estate’s owners, its employees and some external investors, which will focus on both wine and hospitality. The Thokozani range features a white and a red blend. Thokozani will run the Estate’s conference centre and will be acquiring land from Diemersfontein for the construction of its own conference accommodation. Thokozani has a central focus on the training and development of its employees and investors – enhancing industry specific skills and business knowledge – and will be offering wine appreciation and hospitality training courses, and working to stimulate entrepreneurial activities in its trading environment
  • Another notable empowerment project is one that involves the former Stellenbosch Farmer' Winery (now merged with Distiller' Corporation and trading as Distell) as well as a group of black liquor retailers and a local community group as stakeholders. This initiative, based at Darling near the Cape’s West Coast, sells its wines under the Tukulu label. It has been structured to ultimately become exclusively black-owned. Moreover, it is the first project of its kind to involve taverners and it is hoped that their participation will help to promote a culture of wine drinking among their patrons.
  • Uitzicht (meaning Vista) farm, occupying 20 ha in Stellenbosch, produces wines under the Reyneke label, sold predominantly in Germany and the UK. Wine farm workers are using the government land grant available to them to acquire a 24% stake in the operation and now have their own homes. They are also being given training in winemaking, marketing and business skills.
  • The Van Loveren Winery, situated between Robertson and Bonnievale, recently purchased a wine farm as part of their Black Economic Empowerment (BEE) programme. The 138 ha farm was acquired at a cost of R4,9m which includes implements. The farm has established vineyards, and apricot and peach orchards. The Van Loveren farm workers will initially have a 40% interest in the property, which can be increased to 50% in future years. Their share is to be owned and managed by a trust which will be run by the workers themselves.
  • Vins d’Orrance is winemaker Christophe Durand, who hails from France, and his Durban-born wife of Indian descent Sabrina’s jointly owned garagiste wine venture.
  • Vunani Wines, an empowerment venture headed up by MD Vumile Nkewu, sources premium wines and bottles them under the Ekasi label.
  • In the late 90s, Weltevrede initiated the first empowerment scheme in the Robertson Valley by establishing a trust for its workers of previously disadvantaged background. This was started by a donation of Naspers Welcome Scheme shares and the establishment of a pinot noir vineyard. Today this vineyard is mature and thriving, and the crop is being bought by Weltevrede while the profit is being shared by the PDI beneficiaries. These pinot noir grapes are being used in what is possibly the first Cap Classique made of grapes bought from black owners, the Weltevrede Philip Jonker Brut.
  • The Winds of Change label is produced on the Sonop (Afrikaans for sunrise) wine farm, where nine farm worker households acquired a portion of land, funding their purchase with the government housing subsidy, supported by an interest-free loan from the owners. Owners SAVISA (a Swiss-based operation that forms part of Jacques Germanier’s multi-national negociants) purchase grapes from the farmers at market-related prices to offset the loan. A portion of the proceeds from sales of the Winds of Change wines goes towards upliftment projects which focus on education, health and home improvements. Income is also used for capital investment in the vineyard venture.
  • Women in Wine, the first wine-producing company owned, controlled and managed by women, was formed by a group of 20 professional black women from different backgrounds. They are establishing sound relationships with strategic partners among quality suppliers to help them achieve their objectives, according to CEO Beverly Farmer, a founder member. One such partnership is with Boland Kelder, which is their leading wine supplier. Boland’s product development team made Women in Wine's first two Eden's Vineyards wines to their specifications. Shareholding in Women in Wine benefits a large number of women. Around 500 women working on farms will have a shareholding through their Farmworkers Women in Wine Trust, which focuses on skills development and training of farm-worker women. Through its members, it also undertakes community upliftment projects to improve the quality of life of women and children on farms, and to promote the responsible consumption of wine. A thousand tavern owners, traditionally women, also have a significant shareholding in Women in Wine.
  • Yammé is a Setswana word meaning ‘my mother’ and alludes to the rich soils of Mother Africa which nurture the vineyards. This wine range, produced by Overhex in Worcester, one of the largest privately owned cellars in South Africa, was born from the initiative of a group of African women.