Women in Wine: Can Principles Turn a Profit?

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

Figure

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

Figure

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

Figure

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

Figure

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

Figure

Source: Hobbs, J. (2016), E-mail correspondence with Beverly Farmer, 13 September.

Exhibit 9: The Logo for Women in Wine Products Adopted in 2008

Figure

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

Figure

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

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