Vision 2020

1
Vision 2020

• A formal representative structure for the South
  African Wine Industry

2
Todays Agenda

• Presentation
• The need for a formal representative industry
  structure
• Goals of an industry structure
• The proposed structure
• Governing principles
• Operational aspects
• Discussion
• Decision

3
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
The Need for A Formal Representative Structure
for the SA Wine Industry

• 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

5
Goals of an Industry Structure
To accept responsibility and accountability for
the definition and successful achievement of the
industrys vision refer VISION 2020

• Formulate and drive the strategic direction of
  the industry
• Provide a forum for strategic debate
• Coordinate political/social/economic/technological
  activities in the industry on a macro level
• Accept responsibility for generic marketing
  technical research human resource development
  industry intelligence and social responsibility
  in the industry
• It will be the mouthpiece of the industry
• Provide opportunities for dialogue amongst
  stakeholders

6
The Structure Principles
Direct wine grape growers/ wineries S
takeholders wholesale merchants
labour Indirect government NGOs
trade and industry health
bodies financial institutions research
institutions educational institutions SA
WIT retailers etc
7
The Structure Principles
marketing technical
research Processes human resource
development intelligence
social and economic empowerment
8
The Proposed Structure
Wine Grape Growers / Wineries
Wholesale Merchants
Labour
BOARD
CHIEF EXECUTIVE OFFICER
CEOs OFFICE
Human Resource Development Unit
Social and Economic Empowerment Unit
Technical Research Unit
Industry Intelligence Unit
Marketing Unit
9
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 CEOs office carried by
  three groups on equal basis. Labour exempted for
  the first 10 years.

10
Roles and Responsibilities

• Chief Executive Officer
• CEO attends Board meetings.
• The five business units report to CEO, as well as
  his own office.

11
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
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
Roles and Responsibilities

• Technical Research Unit
• Research and Development training and
  technology transfer
• Broadening the industrys research capabilities
• Identify and characterise outstanding and unique
  terroirs
• Consider new approaches to the plant improvement
  scheme

14
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
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
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
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
Implementation Plan

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