2014/08/07

1

The SA Wine Industry

Strategic Exercise (WISE)

Cellar Conference

Rico Basson

6 August 2014

Fast Forward….

2014/08/07

2

Time to pause and reflect…….!

2014/08/07

3

SA Wine Wheel of Fortune”Wars, phylloxera & windfalls!”

16

59

17

75

-17

83

19

14

-19

18

17

95

18

59

18

60

18

86

18

99

-19

03

19

17

19

20

-19

30

19

39

-19

45

20

13

19

94

17

56

-17

63

2014/08/07

4

SA Towards 2025

Taking on the world!?

2014/08/07

5

Random Questions asked?

• How do we play smarter & increase profitability?

• What should we start/stop doing?

• What about the next generation/new middle class?

• What are the models to accelerate transformation?

• Does every player know what Wine Brand SA define?

• What about the local market re promotion?

• What should the agenda and structure for Government engagement be?

• How do we “localise” the ASUF principles?

• Who are responsible for Wine TourismWho are responsible for the gaps?

“Revised strategic framework

needed to ensure an adaptable,

robust, globally competitive

and profitable SA wine

industry!”

2014/08/07

6

Lessons from down under…

Industry success must be driven by

competing firms,

not by well intentioned industry bodies

with

‘industry strategies’

Slide 12

The 2014 Process

Methodology

Business Government

Civil Society

Literature

review

Identify key

enablers

2 Day workshop

Separate work

streams

Develop M & E

framework

Appoint

implementation agents

Phase 1: Develop baseline report and identify

stakeholder needs

Phase 2: Develop

“to be”

Phase 3: Develop monitoring- and

implementation plans

Possible sources:

• FARE

• Social Compact

• Vision 2020

• NDP

• SIP 11

• IPAP

Actions:

• Questionnaires

• Priority matrix

• Key enablers and

themes

• Future state

• Sign-off required

Actions:

• Workshop(s)

• Scenario’s

• Identify

objectives

• Identify work

streams

• Input from

subject matter

experts

• Identify actions

• Project

implementation

plan

• Sign-off required

Actions:

• Develop

monitoring and

evaluation

framework

• Appoint

responsible

governing body

• Sign-off required

Actions:

• Develop ToR

• Project

management

• Progress reports

2 Months

7 Months

2 Months

Current phase

2014/08/07

7

Governance structure

Steering Committee

•Oversight and guidance

Task team•Deliberate

implementation plan

Work streams

•Investigate specific themes

Work

stream

reports

Draft

Report

Final approval

Context

SA WINE

PILLARS FOR GROWTH

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2014/08/07

8

SA Wine Industry Exercise (WISE)Key Pillars for Growth

1. Economic empowerment and development– Stimulate growth & transform

2. Market development and promotion– Work more collectively

3. Social development and upliftment– Improve livelihoods

4. Knowledge & information development– More business orientated

5. Human Resource development and training– Be more open, look more global

6. Technology innovation & transfer– Increase efficiency

Focus on strategic relationships

WISE

Government

Rights & Responsibilities

Labour:

Rights & Responsibilities

Producers

Rights & Responsibilities

2014/08/07

9

Government Need a holistic approach

Wine Industry

Finance/

Treasury

DAFF

Health

Trade and

industry

LabourWater Affairs

Education

Rural Develop-

ment

Tourism

Follow a value chain approach

Profitability

Production efficiency

Cellar efficiency

Logistic efficiency

Market Positioning

2014/08/07

10

Rethink VinPro Strategic Approach to Cellars

Cellar A

Vititec

Agronomy

/ GIS

Viticulture

Agricultural

Econ

Wine MSOenology

Cellar

specialist

BEE/

Training/ Ethical Trade

VinPro

Media

Eg Energy

Specialist/

HR/logistics

Eg. Nielsen

verslag

WISE Key action points

A Economic empowerment and development (stimulate growth)

1 Define value chains with agreed norms for return on investment

2 Ensure sustainable land reform and access for new entrants into the

industry. Eg. Robertson and Northern Cape Pilot

3 Implement bulk water infrastructure projects through PPP’s

4 Create a unified voice to engage with Government on Industry matters

B Market development and promotion (work more collectively)

5 Increase global trade by protecting existing markets and develop new

market through partnership between Industry and Government

6 Increase generic promotion of Brand SA (local and global)

7 Determine impact and potential of Wine Tourism

2014/08/07

11

WISE Key action points cont.

C Social development and upliftment (improve livelihoods)

8 Create local forums (producer/labour/trade union/municipalities etc.)

9 Develop a social compact for the Wine Industry (FISC #2)

10 Corporate Social Investment Baseline, needs assessment & action plan

11 Ensure alignment of global quality standards (ie (IPW, WIETA, BSCI)

D Knowledge and information development (more business orientated)

12 Single SA Wine Industry Portal and search engine

13 Data analysis, market and consumer research

14 Strategic Benchmark projects eg. US Supply Chain

WISE Key action points cont.

E HR Development and Training (be more open , look more global)

15 Policy Framework for Learning and Development in Industry

16 Implement L&D office and manager

F Technology innovation and transfer (increase efficiency)

17 Benchmark best practice of global wine industry players

18 Increase basic research throughout the value chain and transfer

19 Investment in research to leap frog competitors

2014/08/07

12

Effective change management in die SA

wine industry requires:

� Awareness of change, open mindedness and a

willingness to learn,

� Good business intelligence and uninterrupted

information flow

� Creative stress

� Courage and

� Leadership

Vision 2020

March 2001

2014/08/07

13

2014/08/07

14

Grape Expectation 2025….and profitable growth

• Focus on our strengths and opportunities!

• Tell the SA story (and protect the Brand)!

• Learn from each other and set best practice!

• Consolidate, transform and grow

• Partner with Government and Labour

• Innovate with technology

• Take the youngsters along!

• Implement with Confidence!

Thank You