Case
Supplementary Resources
Abstract
In October 2016, the management team of Women in Wine – South Africa’s first wine brand to be owned and controlled by black women – gathered to prepare for the annual meeting of company shareholders. Operating conditions locally and abroad over the preceding year had once again proved extremely challenging, and chief executive officer (CEO) Beverly Farmer felt the firm needed decisive action to improve its fortunes. Accordingly, she was going to present two possible courses of action to shareholders: focus resources on developing a more innovative marketing strategy for the company, or acquire a property to enable diversification into hospitality and farming ventures. Farmer wondered which option would be most effective in enabling Women in Wine to fulfil its central purpose: giving black women – particularly farm workers – a meaningful stake in a sector that had traditionally been controlled by white men.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: Wine-producing Provinces of South Africa
Source: The Wine and Spirit Board (2012), “Wine of Origin”, available at: www.sawis.co.za/cert/download/wineoforigin2012.pdf (accessed 2 October 2016).
Exhibit 2: Structure of the Wine Industry in South Africa in 2008 and 2015
Tons | Number of producers | Production category | ||
2008 | 2015 | |||
Primary grape producers | 1–100 | 1 544 | 1 230 | |
101–500 | 1 423 | 1 168 | ||
501–1000 | 498 | 426 | ||
1001–5000 | 367 | 395 | ||
5001–10000 | 7 | 12 | ||
>10000 | - | 1 | ||
Total number of primary grape producers | 3 839 | 3 232 | ||
Wine cellars which crush grapes | ||||
58 | 48 | Producer cellars | ||
504 | 494 | Private wine cellars | ||
23 | 24 | Producer wholesalers | ||
Total number of wine cellars that crush grapes | 585 | 566 | ||
Bulk wine buyers | ||||
47 | - | Wholesalers (including producer wholesalers) | ||
71 | - | Exporters (buy wine for export only) | ||
Total number of bulk wine buyers | 118 | 104 |
Sources: Conningarth Economists (2015), “Final report – macro-economic impact of the wine industry on the South African economy (also with reference to the impacts on the Western Cape)”, available at: http://www.sawis.co.za/info/download/Macro-economic_impact_study_-_Final_Report_Version_4_30Jan2015-corrected.pdf (accessed 4 September 2016).
South African Wine Industry Statistics (SAWIS) (2016), “2016 – SA Wine Industry Statistics Nr 40”, available at: www.sawis.co.za/info/download/Book_2016_engels_final_web.pdf (accessed 6 June 2016).
Exhibit 3: Production, Domestic Consumption and Exports of South African Wine (Litres), 1994 to 2015
Source: Hobbs, J. (2016), E-mail correspondence with Yvette van der Merwe, 19 December.
Exhibit 4: Leading Export Markets for South African Wine in 2015 (Figures Include Bulk and Packaged Wine)
Country | Volume of exports (in litres) | |
1. | United Kingdom | 107 149 201 |
2. | Germany | 79 442 654 |
3. | France | 27 842 411 |
4. | Sweden | 25 525 335 |
5. | The Netherlands | 22 808 145 |
6. | Canada | 19 696 644 |
7. | Denmark | 19 419 797 |
8. | Russia | 19 185 785 |
9. | USA | 11 383 155 |
10. | China | 11 343 726 |
Source: SAWIS (n.d.), “Exports 2015” [specifically: “Packaged and Bulk Wine Exports (Litres) Per Country for the Period January–December”, under Top 25 Countries (2016-01-19)], available at: www.sawis.co.za/info/stats_exports_2015.php (accessed 19 December 2016).
Exhibit 5: Allocation of Profit along the Value Chain for a Mid-range Bottle of South African Wine
Source: Author not cited (2015), “WISE and the Wine Value Chain Round Table”, 2 September, available at: http://winesouthafrica.info/download?wivcrt=20cf775fa6b5dfe621ade096f5d85d52 (accessed 25 July 2016).
Exhibit 6: Founder Members of Women in Wine
Name | Area of Expertise | |
1. | La Rochell Bezuidenhout | Sales |
2. | Ntombosindiso Dwayi | Education |
3. | Beverly Farmer | Communications, public relations, social development |
4. | Margaret Fundira | Winemaking and viticulture |
5. | Ursula George | Marketing and sales |
6. | Desiree Hindley (deceased) | Education |
7. | Brenda Jacobs | Education and training |
8. | Pumla Johnson | Corporate social responsibility |
9. | Christine Kenned (deceased) | Laboratory analyst |
10. | Margaret Africa | Skills development |
11. | Eleanor Laubscher | Education and training |
12. | Hilda Links | Social and community development |
13. | Bibiana Madala | Police |
14. | Veronica Naude | Education and training |
15. | Pauline Oliver | Early childhood development and education |
16. | Maria Olivier | Communications, training, business management |
17. | Lucia Petersen | Education, finance |
18. | Denise Pietersen | Catering, workers’ rights |
19. | Cynthia Qika | Finance |
20. | Charmell Viljoen | Social development |
Source: Hobbs, J. (2016), E-mail correspondence with Beverly Farmer, 22 December.
Exhibit 7: Members of the Board of Women in Wine, and Trustees of the Farm Worker Women’s Trust
Back L-R: Beverly Farmer, Angeleen Hendriks, Karin Kayser (member of the Farm Worker Women’s Trust) and Ursula Engelbrecht.
Front L-R: Katy September and Leana Claasen.
Source: Women in Wine (n.d.), “Home”, available at: http://womeninwine.co.za/ (accessed 29 August 2016).
Exhibit 8: Examples of the Redesigned Packaging for the Women in Wine Range
Source: Hobbs, J. (2016), E-mail correspondence with Beverly Farmer, 13 September.
Exhibit 9: The Logo for Women in Wine Products Adopted in 2008
Source: Hobbs, J. (2016), E-mail correspondence with Beverly Farmer, 22 December.
Exhibit 10: The Complete Range of Women in Wine Products in 2016
- Cabernet Sauvignon (the firm’s best-selling wine – priced at R49);
- Chardonnay (R45);
- Sauvignon Blanc (R45);
- Pinotage Rosé (R39);
- Aglaia Chardonnay (Three Graces Reserve Range: R99);
- Euphrosyne Cabernet Sauvignon (Three Graces Reserve Range: R110); and
- Thalia Merlot (Three Graces Reserve Range: R110).
Source: Ndaba, Z. and Hobbs, J. (2016), Interview with Beverly Farmer on 28 June, Stellenbosch.
Exhibit 11: Women in Wine Products on Display at the WineX Rand Merchant Bank Wine Festival
Source: Hobbs, J. (2016), E-mail correspondence with Beverly Farmer, 22 December.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved