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VISION 2020 ASPIRES TO 'MASTERLY EXCELLENCE' IN THE SOUTH AFRICAN WINE INDUSTRY
P H Spies
The 'South African Wine Industry', for the purposes of the South African Wine Industry Vision 2020 strategic study, is circumscribed as consisting of three sectors, namely wine, brandy and grape-based products. This description has a strong practical bias, for it gives recognition to the existing industry affinities in South Africa. The study focuses in depth on the individual strategic issues which are characteristic of each of the three sectors, but also investigates the strategic affinities shared by the sectors.
Click here to see Wine Industry : Vision 2020 table.
Over the past four months the research team of Winetech Vision 2020 started working fast and furiously to be able to publish the first view of what the future holds for the South African wine industry by the end of November 1999. This view of the future, entitled Wine Industry Futures 2000, should facilitate a strategic discussion with international role players. An Afrikaans summary will be made available to South African producers to serve as the basis for a comprehensive debate about the future of the industry during the first half of 2000.
Since June this year there has already been 18 planning sessions involving 170 persons. Separate discussions were held with 22 role players in the wine industry about their industry perspectives, and expectations of the investigation. Eleven researchers are working on a full-time and part-time basis on the project, and a large amount of national and international information about the local and global wine industry has already been gathered and analysed.
The structure of the investigation rests on a 'value chain' concept for the wine industry (see diagram). The point of departure for the investigation is that the specifications for 'value' and 'quality' are determined by the market (not by 'experts'), and that each link in the value chain plays a key role in the production of 'value' and 'quality' for the market. The contribution of each link in this value chain - say, for example, source and plant material development - is determined not only by the quality of the activities in such a link. Of equal importance, at the very least, is the quality of the integration and interactions of that particular link with all the other links in the value chain. To make sure that this principle is strongly entrenched in the Vision 2020 project - in other words to carry the principle of market driven quality production right through all the processes from packaging and marketing to winemaking and farm level - a special investigation was initiated to deal with logistical planning, including the study of international computer models.
Other investigations already under way are the following:
- The social and human aspects that play a role in the development of the wine industry. Here one is looking at subjects such as environmental and community responsibility (an increasingly important matter for exporters), labour relations, alcoholism, training and human development.
- Technology strategy, which includes strategies for technology transfer in particular.
- Strategies for institutional and statutory development in the wine industry.
- An investigation into terrain based wine production which makes use, inter alia, of so-called Geographic Information Systems (GIS).
The planning discussions highlighted various key issues which are of cardinal importance to the international viability of the wine industry. Some of these are:
- Socially unacceptable practices which harm the image of the South African wine industry - such as perceptions that the tot system still exists in various guises on certain wine farms, and that wine-in-the-bag promotes alcoholism amongst the poor.
- Continuing problems with the supply of plant material - in particular the problem of virus reinfection which thwarts the international viability of the South African wine industry.
- Low receptiveness for new technology in the wine industry, undisciplined practices, and few specialists - when comparing the South African industry with that of Australia and California.
- Complacency towards the market, and a sales orientation of wine as a commodity - rather than a marketing orientation which sees wine as a market specific niche product.
- Exceptionally bad logistics - in which the government's ruling schemes play a part -meaning that South African wines take longer to reach the market than Australian wines.
- A want of a recognised 'South African' style, and poor brand development.
- An apparent inability by the big role players in the industry to take the lead in innovation.
- Inefficient co-ordination of international advertising, quality management and export promotion.
- Various statutory rulings which are seen as obstructions to innovation in the wine industry.
The Wine Industry Vision 2020 project has as its goal the development of a market driven highly competitive wine industry which enjoys global recognition for excellence. To achieve that goal, nothing but the very best international practices and procedures will be good enough for South Africa. The collaborative planning process which characterises the investigation aims at giving everyone the opportunity to shape and help realise this ideal. In future hundreds of 'winelanders' will therefore be involved in the investigation.
The SA Wine Industry's VISION 2020 is making good progress, with active and positive co-operation by individuals and in group discussions. Support is being received from all the big role players. F L T R: Jan Booysen, Executive Director, WINETECH, Frans Stroebel, Managing Director of Stellenbosch Farmers' Winery, Jan Scannell, Managing Director, Distillers, Danie de Wet, chairman of the Cape Estate Wine Producers Association, Willem Barnard, Managing Director, KWV and Kobus Joubert, chairman of the Organisation for Wine Producers.
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