1. Vision 2020 A formal representative structure for the South African Wine Industry

2. Vision 2020 : Wine Industry Structure Today’s Agenda Presentation 1. The need for a formal representative industry structure 2. Goals of an industry structure 3. The proposed structure 4. Governing principles 5. Operational aspects Discussion Decision

3. 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

4. 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

5. Vision 2020 : Wine Industry Structure Goals of an Industry Structure 1. Formulate and drive the strategic direction of the industry 2. Provide a forum for strategic debate 3. Coordinate political/social/economic/technological activities in the industry on a macro level 4. Accept responsibility for generic marketing; technical research; human resource development; industry intelligence; and social responsibility in the industry 5. It will be the mouthpiece of the industry 6. 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

6. Vision 2020 : Wine Industry Structure The Structure : Principles Directwine grape growers/ wineries Stakeholders wholesale merchants labour Indirect government NGOs trade and industry health bodies financial institutions research institutions educational institutions SAWIT retailers etc

7. Vision 2020 : Wine Industry Structure The Structure : Principles marketing technical research Processes human resource development intelligence social and economic empowerment

8. 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 Wholesale Merchants

9. 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.

10. 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.

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. Vision 2020 : Wine Industry Structure Operational Aspects Name: South African Wine and Brandy Company Offices: 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: