The Wholesale Merchants Forum of the South African Wine and Spirits Industry Submission on the Liquor Bill to the Portfolio Committee on Trade and Industry

The wholesale merchants forum A voluntary trade association of producing wholesalers – producing, marketing and distributing alcoholic beverages under trade marks in South Africa and internationally A voluntary trade association of producing wholesalers – producing, marketing and distributing alcoholic beverages under trade marks in South Africa and internationally Widely divergent in size and variety of business forms Widely divergent in size and variety of business forms Involved in any combination of producing, importing, exporting, marketing and distribution Involved in any combination of producing, importing, exporting, marketing and distribution Represent 61% wine, 83% whisky, 95% brandy and 80% of flavored alcoholic beverages Represent 61% wine, 83% whisky, 95% brandy and 80% of flavored alcoholic beverages

Members Cape Wine and Spirit Institute Cape Wine and Spirit Institute Guinness UDV Guinness UDV Mooiuitsig Wynkelders Mooiuitsig Wynkelders Distell Distell DGB DGB Jonkheer Boerewynmakery Jonkheer Boerewynmakery E Snell & Co E Snell & Co Pernod Ricard South Africa Pernod Ricard South Africa

Members Cape Negociants Cape Negociants Stellenbosch Vineyards Stellenbosch Vineyards Coppoolse Finlayson Coppoolse Finlayson Cape Wine Cellars Cape Wine Cellars African Terroir African Terroir Winecorp Winecorp Vinimark Vinimark Cape Classics Exports Cape Classics Exports Cape Bay Wines Cape Bay Wines Vinfruco Vinfruco Lost Horizons Lost Horizons Long Mountain Wine Co Long Mountain Wine Co Graham Beck Wines Graham Beck Wines Rockfields Wines Rockfields Wines Baarsma SA Baarsma SA Vinum Vinum Western Wines South Africa Western Wines South Africa West Coast Vineyards West Coast Vineyards

Members KWV KWV Maiden Wines Maiden Wines African Wines and Spirits African Wines and Spirits Clear Mountain Wines Clear Mountain Wines ML Wines ML Wines Historic Wines/Meridien Wine Merchants Historic Wines/Meridien Wine Merchants

Objectives of the bill The Forum subscribes to and supports the objectives of the Liquor Bill subject to the comments that follow The Forum subscribes to and supports the objectives of the Liquor Bill subject to the comments that follow

Economic empowerment The best point at which to promote economic empowerment, job creation and small business development is at the retail level The best point at which to promote economic empowerment, job creation and small business development is at the retail level

Sales by manufacturers to retailers Previously – manufacturer may sell to any licensee Previously – manufacturer may sell to any licensee Now – minister has a discretion to allow the sale by manufacturer to licensee Now – minister has a discretion to allow the sale by manufacturer to licensee Revert to previous arrangement Revert to previous arrangement

Sale by manufacturers to tourists Previously – manufacturer may sell to the public at registered premises Previously – manufacturer may sell to the public at registered premises Now – Minister has a discretion to allow sale by manufacturer to tourists Now – Minister has a discretion to allow sale by manufacturer to tourists Tourist facilities of great importance to growing wine tourism Tourist facilities of great importance to growing wine tourism Revert to previous arrangement Revert to previous arrangement

General provisions Duplication of legislation should be avoided Duplication of legislation should be avoided Competition Act Competition Act Empowerment Act Empowerment Act Test of accessibility, legitimacy and simplicity Test of accessibility, legitimacy and simplicity

Summary The challenge is to transform the industry without being disruptive The challenge is to transform the industry without being disruptive Offer to assist with technical expertise Offer to assist with technical expertise