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Distell defends paying for wine listings 29 November 2007

Other producers say the practice is wrong

 

The country’s largest wine company, Distell, has admitted that it pays restaurants to list its wines, according to Sake24, the business pages of the major Afrikaans newspapers. Other producers have come out strongly against the practice, claiming that it is immoral, manipulates the system and hoodwinks the consumer.

Distell confirmed such payments in a statement issued to Sake24’s reporter Nellie Brand. This is in response to the announcement of an investigation and workshop into such practices to be undertaken by the SA Wine Industry Council (Sawic) (see report).

The company claims that the custom is not anti-competitive. Brand quotes Distell as saying that it applied to all producers, irrespective of their size or mark position. The wine giant’s statement then makes the astonishing argument: ‘The preponderant factor is simply whether the producer can or is prepared to pay the required fee.’ 

Brand reports that most other wine producers she spoke to strongly disagree and condemned the practice.

 

COMMENTS

From Mark:
It is sadly not surprising that Distell admit to the practice. It is the measure of the company that they need to pay for wine lists, if I had that much crap wine to sell I guess my cheque book would also be used! What about the guys who accept the money? Remember, this looks like another scenario, a generally corrupt one at that.

 

From Poor Tom:
Aaah! Well all the moaning about the little guy and the poor consumer might have paid off - but I\'m not going to hold my breath. It's quite disgraceful how  'normal' this practice seems to be to the Big D. Bertrand Russell - English philosopher - once said, 'Advocates of capitalism are very apt to appeal to the sacred principles of Liberty which are embodied in one maxim: The fortunate must not be restrained in the exercise of tyranny over the unfortunate'. How true these words sound.

 

From Mark:
So what can be done? Who is wrong? The Distells, DGBs or the outlets who are to lazy to know what wine can add to the bottom line without the cheque, brollies, ice buckets etc? Jan, as CEO of Distel maybe you can let us know what the policy is and why!!! Morals,ethics, these are at play here. Ingrid Motteux wrote about this as well a while ago, funny then that it is still common place. I for one praise the guys who have integrity and take the time and effort to make sure that they have balanced wine lists....

 

From Nigel Cattermole:
Well well, The "Big D" has at last got the gonads to admit they have to buy their way into business to get their wines on restaurant lists. Also let us not forget their furniture and shopfitting division that saves those poor restauranteurs from having to spend any of their own cash to operate their business..

Branding through promotional material is fine, being told that a restaurant wants a certain wine but unless you pay them 8K it's no go is bordering on extortion, don't you think?

Well done to good old Prof Kader for waking up to this LONG established practice and let’s hope that at last the Competition Commision looks into it.... I think the State would love to get a few more R100 Mil in the coffers.

 

From Carl van der Merwe (Quoin Rock winemaker):
I have encountered this a number of times during trade work in Gauteng – one restaurant admitted to having shopfitted their entire store including parts of the kitchen with listing fees from particular enterprises. It is a great pity, but something which is on the increase, with wineries scrambling for places on wine lists.

It unfortunately does not say much for the restaurants who support such practice. Generally these restaurateurs are too lazy to put any effort into seeking out the best of what the Cape has got too offer and their winelists are a sad reflection of the potential of South Africa as a wine destination. A wine list, waiter and restaurant profile are great marketing tools that not only help to position a brand but also help to engender a culture of wine appreciation and wine education amongst restaurant patrons. It is imperative that we grow and educate the local market and that wineries move more wine locally rather than chasing after foreign markets. Restaurants are a great tool to grow this share and I hope that more restaurants will pay more attention to what they list and the culture of their suppliers not too mention training their staff and the correct serving temperature of red wine. Good on SAWIC for conducting this investigation and I hope they blow the whistle loud and clear.

 

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