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South Africa Wines Case Study

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Brittany Lynn Clark

on 19 November 2015

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Transcript of South Africa Wines Case Study

What do you think of when you think of
Developing Wines with a Conscience
South African Wine Industry Confronts Societal Issues
Social Issues
Fast Facts
Wine Industry & employment
Third-party industries indirectly/directly related
Wine Industry Ethical Trade Association
History of unrest
Colonialism, racism, oppression, inequality
Industry landscape
Unbalanced and misrepresentative of other racial parties in the ownership structure of industry
1980 international trade sanction
Paternalistic relationship between owners and workers- made worse by language barriers
Government of South Africa issues the historic AgriBBE, Black Economic Empowerment Act
Can you identify the key persons and organizations involved in this case?
Key Players
Human Rights Watch - Non-profit independent investigative human rights organization issues critical report and news release on Aug. 23, 2011.
Report summary
WOSA CEO, Sue Birch responds to accusations on the same day.

Wine producers, suppliers, cellars and workers in South Africa
- Small farm owners and workers, and vineyard owners and workers
Consumers of South African wine
(mainly in the UK, Sweden, Netherlands and Germany but also the United States and Canada)
Large South African wine corporations
like Distell, Treasury Wines, the Company of Wine People, DGB and KWV
Wines of South Africa (WOSA) and the Wine Industry Ethical Trade Association (WIETA) VS. Human Rights Watch (HRW), a non-profit investigative human rights organization

Other Players
The South African government
– not directly involved, but important for future ethical growth in South African wine industry
2002 Fair Labour Accreditation program
, supported by large grocery chains in Britain
WIETA members
(vineyards and businesses)
WIETA auditors

Ethical Trade Initiative (ETI)
in the UK

Winery Owners
• Winery owners have become aware of which conditions are unsafe and dangerous for workers

• Owners are educated on the products they are using and how they affect the winery workers

• Owners recognize appropriate preventative measures

• Educate owners on dangerous conditions

• Carry out more inspections during the season to ensure quality control

• Negotiating with the Fairtrade Labelling Organization (FLO) to enhance reputability

• Working to ensure that accreditation of WEITA is compliant with the FLO standards

• Collaborating with FLO to conduct producer audits on companies who already belong to both organizations

• Marketing company is helping WEITA by piquing media interest
Present Day
Responsible for regular awareness and training workshops on ethical trade, labour and occupational health and safety compliance (wieta.org)
WIETA conducts audits compliant with legislative standards such as:
o Working conditions
o Health and safety
o Housing and tenure needs
Auditors are independent contractors who are occupational health and safety certified
Promote adoption of good ethical trade and health and safety standards
Educating producers and workers on code provisions
Determine various tactics to implement and comply with code

"WIETA is a not-for-profit, voluntary association of many different stakeholders in the South African wine industry, who are committed to the promotion of ethical trade in this sector. WIETA has a strategic partnership with farm worker organisations and labour unions working in the sector."
WIETA’s mission is to promote ethical trade in the agricultural sector by:
formulating and adopting a code of good practice governing employment standards for those involved in the growing, production, packaging and bottling of agricultural products;
promoting the adoption of and adherence to this code of good ethical practice among all producers and growers;
educating producers and workers on the provisions of the WIETA code;
managing independent social audits to ensure that members of the association observe and implement the code of good practice;
supporting and implementing development initiatives towards integrated ethical trade planning and management in the sector; and
determining ways of encouraging implementation of ethical practice and compliance with the code, and determining measures to be taken in the case of non-compliance with the code.

"To contribute to the global success of the South African wine industry through building Brand South Africa."
representing "all South African producers of wine who export their products"
500+ produces on its database
independent of:
any producer or wholesaler
any government department
Business Scope
Enhance the image and reputation of the South African wines in key international markets.
Assist with the development of new export markets.
Assist with capacity building among exporters.
Facilitate the development of SA wine tourism
As of 2012,
only 79 wine cellars and farms were accredited
. The industry consists of approximately
4000 wine producers and cellars
, but
only 135
businesses are members.
& Expectations
Board members
contribute expertise and time to develope code and making decisions to meet objectives
Producer members
apply codes to workplace and allow WIETA to monitor compliance
Trade Union members create awareness of code changes among their members
Non-governmental organisations
provide "expertise, training capacity and research capabilities"
works with WIETA to create more effective ethical trade performance management and make sure under-resourced rural areas comply with codes

South Africa?
What do you think of when you think of
South African Wines
Do you have any suggestions?
Gained almost 200 members
Trained almost 200 more producers
Audited about 250 more plantations/cellars
Accredited almost 100 more companies

In the past year WIETA has:
Believes in ≠Hannuwa, belief of harmony for fortune

• Keep up standards and is the public face for the SA wine Industry
• Minimum Wage will be raised to 12.41 ZAR/ hr in March for farm workers

As of January 21, 2015

1 SA Rand

= 0.11 CAN Dollars
Canada's Role
Fair Trade Canada:
The first Fair Trade wine available in Canada was in 2007
Has its own standardizations for fair trade

South African Wine Society:
Offers membership
SA wine producers run tasting

Major wine production takes place in the fertile region of Western Cape, South Africa.
Cape Floral Kingdom- world heritage site and one of 18 biodiversity ‘hotspots,’ worldwide.
Wine Industry sustainability efforts
more media attention for existing positive reforms and codes - possibly release video campaigns of farmers and their lifestyles
more attention on programs benefiting labourers such as anti-alcoholism programs, schooling, housing, training...etc
publish monetary benefits of ethical seal and accreditation (studies/research) to attract new interest
reach out to cooperation cellars and independent cellars
Set global standards, more partnerships with ethical groups importing/exporting wine
Charter of the South African Wine Society. (n.d.). Retrieved January 22, 2015, from http://www.southafricanwinesociety.ca/charterFAQ.php

Environmentally Sustainable. (n.d.). Retrieved January 22, 2015, from http://www.wosa.co.za/Sustainability/Environmentally-Sustainable/Intro/

Enviropaedia. (2013). Cape Floral Kingdom. Retrieved January 21, 2015, from http://www.enviropaedia.com/topic/default.php?topic_id=38

Fair Trade Wine. (n.d.). Retrieved January 22, 2015, from http://fairtrade.ca/en/products/wine

Hannuwa. (n.d.). Retrieved January 21, 2015, from http://www.wosa.co.za/knowledge/pkdownloaddocument.aspx?docid=3250

Jews for Justice for Palestinians. (2013). How to tell Israeli and South African apartheid apart. Retrieved January 21, 2015, from http://jfjfp.com/?p=43814

Minimum Wages in South Africa. (n.d.). Retrieved January 21, 2015, from http://www.mywage.co.za/main/salary/minimum-wages

MSN Money. (2014). Currency converter. Retrieved January 21, 2015, from http://www.msn.com/en-ca/money/currencyconverter/fi-ZAR-CAD?ocid=INSFICU10

South African Development Community. (2014). South Africa. Retrieved January 21, 2015, from http://www.sadc.int/member-states/south-africa/

Swann, P. (2014). Cases in public relations management: The rise of social media and activism (2nd Edition). New York, NY: Routledge.

The Guardian. (2014). South African vineyard worker. Retrieved January 21, 2015, from http://i.guim.co.uk/static/w-460/h--/q-95/sys-images/Guardian/Pix/pictures/2011/8/22/1314027334508/South-African-vineyard-wo-007.jpg

VinPro - Services - Transformation & Development - Services - Transformation & Development. (n.d.). Retrieved January 21, 2015, from http://www.vinpro.co.za/services/transformation- development

WIETA: Agricultural Ethical Trade Initiative. (n.d.). Retrieved January 21, 2015, from http://www.wieta.org.za/index.php

Wines of South Africa. (2014). About WOSA. Retrieved January 21, 2015, from http://www.wosa.co.za/About-Us/WOSA/
Full transcript