Short-lived life of Wine Industry Council? 15 April 2008

Directors abandon recently launched ship
 

Not two years after it was formally constituted, the South African Wine Industry Council seems to be on the verge of collapse. A host of directors, representing various industry bodies, have indicated that they are abandoning the institution shortly after the sudden resignation of chairperson Kadar Asmal a few weeks ago (see Michael Fridjhon’s article on the subject). The council was also due to appoint a new CEO when Johan van Rooyen’s time runs out at the end of the month.

Die Burger’s Sake reporter, Nellie Brand writes that the directors, representing Vinpro, Wine Cellars SA and the SA Liquor Brandowners’ Association, told other directors at an informal meeting this week of their intention to leave. There seems to be indication that representatives of Wines of South Africa, Sawis and Winetech will also leave. This will leave only representatives of workers, upcoming farmers and civic organisations on board.

The effective dismantling of what has recently been called the South African Wine Council – which took years to establish – will, once again, leave the industry somewhat adrift. According to Brand, the producers’ representatives are basically throwing in the towel because the Council failed to act as intermediary with government and to speak effectively on behalf of the industry. We have asked the CEO of the Council for his comment on the situation.

These seem to be, indeed, sad days for the leadership of the South African wine industry.

Further report:

The three organisations that have decided to resign as members and directors (and crucially to withdraw their funding. currently amounting to R2 million per annum) have issued a statement. Their decision, they say, ‘follows their evaluation of significant events affecting the operations of the Council and its Advisory Forum’ – the sudden resignation of Kader Asmal and the expiry of contracts of the CEO and other staff members.

They say that the finalisation of the Wine Industry Charter (which we might add is presumably sitting somewhere on the Minister of Agriculture’s desk) means that ‘transformation in the industry is now on track, which is one of the major objectives originally set with the formation of the Council’.

The organisations add that progress with the Council’s two other main objectives had ‘not come up to expectations’ – liaising with government and providing a forum for communication within the industry. However, they say they 'remain committed to the objectives and activities of the four business units'. (Those units are Winetech – Wine Industry Network for Expertise and Technology, Wosa, Sawis –SA Wine Industry Information and Systems,  and Wida – Wine Industry Development Association.)

A different viewpoint, and a threat

As might be expected, the Black Association of the Wine and Spirits Industry (Bawsi), led by Nosey Pieterse understands the resignations rather differentsly. In a joint statement (apparetnly the order of the day in this matter) with the Rural Development Network, Bawsi  suggests that  'It is clear that they are resigning because of BAWSI’s program of action' – referring particularly to the anti-eviction campaigns that Bawsi has led or participated in and the legal action it is threatening to bring against the wine industry (see our earlier reports on that).

Incidentally, the statement suggests 'agreement' with the resigning organisations 'that the Minister of Agriculture is ignoring the SA Wine Council'.

Bawsi adds that 'White business have benefited greatly from the council.  Our presence makes them representative, we gave them the legitimacy. Because of us they became politically, socially and economically acceptable.' Declaring that they 'will not submit to intimidation and blackmail', Bawsi and Rudnet threaten to make the South African wine industry once again 'the pariah of the world market'.

COMMENT

From Vieilles Vignes:
Call me ignorant if you please, but could anyone clarify what any of these boards, institutes, directors and councils actually did, in and for the wine industry other than making money disapear without any tracebility? I take it there were many meetings held and grand plans but the results seems almost as phantom as the Vision 2020 drawn up in the late 1990's, has anyone actually read that document?