THE local wine industry has been shaken by the collapse of the SA Wine Council, shortly after its chairman, Kader Asmal, unexpectedly resigned at the end of last month following criticism from some empowerment members.
Asmal’s resignation was followed by the withdrawal of main industry players from the Council last week, in the period during which a replacement was being sought for the executive head, Dr Johan van Rooyen, and two colleagues whose contracts are about to expire.
Three of the six directors of the Council who have withdrawn, represent major industry bodies: Vinpro (wine farmers), Wine Cellars South Africa (producing cellars) and Salba (brand-owning liquor companies such as KWV and Distell).
The other three directors whose withdrawal will be confirmed pending board decisions are from Wines of South Africa (Wosa), Winetech and Sawis.
Their withdrawal is attributed to politicking by members of the Council representing labour, emerging agriculture and civil society, at a time when the industry is going through hard times.
According to industry observers, the withdrawals spell the collapse of the council, which was established at great cost to the business participants, but got bogged down in political activism.
Expenditure to date could be as much as R12 million, since the establishment of its forerunner, the SA Wine and Brandy Company, in 2002.
Although the Council had completed a charter for empowerment and hoped to promote communication and co-operation within the industry, it has to date not been recognised by the Minister of Agriculture as a mouthpiece for the industry.
Its possible demise has also been hastened by the unwieldy forum advising the Council, where as many as 60 representatives took decisions on consensus.
This forum is the body which must nominate a new chairman.
It is expected that the recently founded business unit of the Council, the Wine Industry Development Association (Wida), will continue to function.
It is financed by a statutory levy on the industry control by the National Agriculture Marketing Council, as are the Wosa (wine marketing), Winetech (wine research and Sawis (wine industry information).
According to Nosey Pieterse (representing labour) the withdrawal of the directors is “a declaration of war. We have already started with the process of mobilisation. The SA wine industry will again become the pariah of the world market.”
