Vision 2020

A formal representative structure for the South African Wine

Industry

Vision 2020 : Wine Industry Structure

Today’s Agenda

Presentation1. The need for a formal representative

industry structure2. Goals of an industry structure3. The proposed structure4. Governing principles5. Operational aspectsDiscussionDecision

Vision 2020 : Wine Industry Structure

The Need for A Formal Representative Structure for the SA Wine Industry

Vision 2020 strategic recommendations

An effective worker and farm worker community representation system

Well integrated and strategically oriented social responsibility, economic empowerment and affirmative action programmes

A human resource development strategy A broader industry research and technology

transfer capability

Vision 2020 : Wine Industry Structure

An industry marketing research capability A marketing capability (focusing on generic

aspects) An effective industry business intelligence and

information service An effective quality and logistics management

system New approaches to the plant improvement

scheme Identify outstanding and unique terroirs

The Need for A Formal Representative Structure for the SA Wine Industry

Vision 2020 : Wine Industry Structure

Goals of an Industry Structure

4. Formulate and drive the strategic direction of the industry

5. Provide a forum for strategic debate6. Coordinate political/social/economic/technological

activities in the industry on a macro level7. Accept responsibility for generic marketing; technical

research; human resource development; industry intelligence; and social responsibility in the industry

8. It will be the mouthpiece of the industry9. Provide opportunities for dialogue amongst stakeholders

To accept responsibility and accountability for the definition and successful achievement of the industry’s vision – refer VISION 2020

Vision 2020 : Wine Industry Structure

The Structure : Principles Direct wine grape growers/

wineriesStakeholders wholesale merchants

labour

Indirect governmentNGOstrade and industryhealth bodiesfinancial institutionsresearch institutionseducational institutionsSAWITretailersetc

Vision 2020 : Wine Industry Structure

The Structure : Principles

marketing technical research

Processes human resource development intelligence social and economic empowerment

Vision 2020 : Wine Industry Structure

The Proposed Structure

Labour

BOARD

CHIEF EXECUTIVE OFFICER

CEO’s OFFICE

Marketing Unit

Technical Research

Unit

Human Resource

Development Unit

Industry Intelligence

Unit

Social and Economic

Empowerment Unit

Wine Grape Growers / Wineries

WholesaleMerchants

Vision 2020 : Wine Industry Structure

Roles and Responsibilities

Board

Directors represent the interests of the wine industry.

Directors are all equal with one vote each. Chairperson has casting vote.

Funding of the Board and CEO’s office carried by three groups on equal basis. Labour exempted for the first 10 years.

Vision 2020 : Wine Industry Structure

Roles and Responsibilities

Chief Executive Officer

CEO attends Board meetings. The five business units report to CEO, as

well as his own office.

Vision 2020 : Wine Industry Structure

Roles and Responsibilities

Marketing Unit

Domestic and international generic marketing Establish an effective quality and logistics

management system – develop “Brand South Africa”

Wine tourism Functions currently performed by: Wine

Foundation; Cape Wine Academy; WOSA; Brandy Foundation and Wine and Spirit Educational Trust

Vision 2020 : Wine Industry Structure

Roles and Responsibilities

Human Resource Development Unit

Institute a human resource development strategy which will ensure that the backlogs which exist in terms of international standards are addressed in the long and short term

Vision 2020 : Wine Industry Structure

Roles and Responsibilities

Technical Research Unit

Research and Development; training; and technology transfer

Broadening the industry’s research capabilities Identify and characterise outstanding and

unique terroirs Consider new approaches to the plant

improvement scheme

Vision 2020 : Wine Industry Structure

Roles and Responsibilities

Industry Intelligence Unit

Develop a central marketing research capability

Develop an effective business intelligence and information transfer service [refer SAWIS and VINPRO(SA)]

Provide a central information and knowledge base

Vision 2020 : Wine Industry Structure

Roles and Responsibilities

Social and Economic Empowerment Unit

Develop an effective worker and farm worker community representation system

Implement well integrated and strategically oriented social responsibility and affirmative action programmes

Environment/Ecology Economic empowerment Social empowerment Social welfare

Vision 2020 : Wine Industry Structure

Governing Principles

A section 21 company Stakeholders other than the three direct

groups are involved at Business Unit level Stakeholders are free to join Each Business Unit has its own Advisory

Council Board appoints an Executive Committee to

support CEO Regular industry conferences will be arranged This company needs to be recognised by

Government and both direct and indirect stakeholder groups

Vision 2020 : Wine Industry Structure

Operational Aspects

Name: South African Wine and Brandy CompanyOffices: CEO/Board decide (“neutral“ location)

Job descriptions

Cost of structure: R1m – R1.5m per year

Funding of Business Units

1. Appoint facilitators – one per grouping : 21 February

2. Nominate representatives from each group : End May

3. Appoint Board, Executive Committee and CEO : June 2002

4. CEO and Executive Committee responsible for roll-out of this structure

Implementation Plan: