Signs of a heave-ho power struggle in the hallowed halls of South African wine officialdom are emerging, and if the potential consequences were not so severe, a bowl of butter popcorn and a glass of cool, brisk Chardonnay could be procured to watch the show. But hold that thought, as it ain’t pretty for any wine producer or anybody concerned about the reputation and status of the country’s wine industry.
The deal concerns SAWIS, arguably the most efficient, effective and reputable arm of the multi-pronged officialdom that makes up the aforementioned hallowed halls of South African wine administration and management. SAWIS is the backbone and the heart of the wine industry. Without it, the industry wouldn’t be able to stay standing, nor would it have the irrepressible internal organ to keep it alive, 24/7.
SAWIS fulfils a supporting and administrative role that is essential for a well-informed and functioning wine industry. By turning industry data into usable information, administering certification processes and providing inspection services, SAWIS helps to support informed decision-making, traceability and trust in South African wine. All information and statistics recorded about the industry, all certification, inspection, wine of origin verification….and much, much more – this is what SAWIS does.
And for the 25 years plus of its existence, SAWIS has quietly, efficiently and diligently gained an international reputation in a field of which it is a world leader. Yvette van der Merwe, executive manager of SAWIS, is the current president of the International Organisation of Vine and Wine (OIV), a position to which she was not elected on account of her proficiency in Afrikaans and love of Chenin Blanc. It is because she and SAWIS run a show the rest of the wine world deems as of the best in the business.
One would therefore think that while other wine industry organisations went about their own way – South Africa Wine holding meetings producers and growers, Wosa sitting back and seemingly watching the wine world go from the aisles and Vititec effectively analysing new clones of Cabernet Sauvignon and Sauvignon Blanc – SAWIS would be left to do what it does so well in relative peace.
Not on the watch of one Olivia Poonah, executive manager of the Wine Certification Authority (WCA) and the kind of gal in whose presence you don’t leave the ice-pick lying around while your back’s turned mixing the Martinis.
She’s got power, see, the WCA being a different puppy compared to the other wine industry bodies. WCA has muscle, and not necessarily of the right kind. For this is a statutory body, reporting to the National Government of South Africa. Established under the Liquor Products Act, 1989, WCA is responsible for administering the Wine of Origin (WO), Integrated Production of Wine (IPW) and Estate Brandy schemes, which support certification, origin and production standards.
The WCA operates independently in carrying out its statutory responsibilities, with its governing authority appointed by the Minister of Agriculture. And as the situation stands, WCA contracts SAWIS to provide all those essential certification and inspection services on which the industry so heavily depends.
And it is this contract that is causing the current tsunami of concern within the South African wine industry, as Poonah and her WCA compadres have decided to end the service agreement with SAWIS. Yes, just like that. Out of the blue.
As a result of this humble journalist having cursory knowledge of the industry as well as of the vital role of SAWIS, I immediately reached out to Poonah for further enlightenment on the issue. As other journalists and I have, however, learnt to expect, no reply or attempts to communicate were forthcoming from this voice of authority, and this instance proved to be no exception.
Rico Basson, head of South Africa Wine, did however communicate on the issue in an e-mail letter circulated to Cape wine producers and grape farmers. Although admirably diplomatically worded, any reader with an eagle eye can see that Basson is as pissed off about WCA’s hard-headed decision to pull the SAWIS rug as his producers are, and who have every right to be.
He writes: “The decision to terminate the agreement was taken without prior formal consultation with South Africa Wine or the broader industry, including those who pay for certification and inspection services (namely producers – Editor). We have also not yet received sufficient information to understand why an earlier transfer is necessary, what it would cost or how it would work in practice.”
This needs to sink in: A powerful wine industry body, mandated by government, makes a rash decision with the potential of having massive ramifications for the South African wine industry. And does so without engaging with another industry body – South Africa Wine – which acts as the conduit between the country’s producers and grape growers and the statutory arm of the very same industry named WCA.
The letter continues: “We have asked for more information about the reasons for the proposed changes, the expected costs, the possible effect on services and the arrangements for transferring responsibilities. We have also obtained independent legal advice to ensure that we understand the relevant processes and the industry’s interests.
“Because important questions remain unanswered, we have raised our concerns with the Minister of Agriculture, Mr Willie Aucamp. The WCA is a statutory authority established under the Liquor Products Act and operates within the Minister of Agriculture’s oversight framework. We therefore believe it is appropriate for the Minister to be made aware of the industry’s concerns, particularly where decisions could affect the cost and continuity of essential services.”
The fact that South Africa Wine has – quite rightly – overshot WCA by going straight to the Minister of Agriculture, as well as seeking legal advice, subtly hints at Basson and his crew not going down without a fight, hence my initial stating that the gloves are off in the corridors of power within South African wine.
Concerning the last sentence, continuity is a major issue. The chances of Poonah assembling a team with the competence, industry knowledge and logistical acumen currently overseen by SAWIS within the next two to three years are about as likely as eradicating leaf-roll virus in the next decade. What, for example, happens when wine certification and the monitoring of wine stock levels grind to a halt in South Africa?
The other important ‘c’ word is cost. Growers and producers pay for SAWIS’s invaluable services and SAWIS lets them know what they are in for. Fly in a snappy bunch of WCA cronies with government connections, raise the current pay model for these services and Mayday is complemented by pay-day.
Of course, there will be two sides to any story. Industry insiders told me that Poonah and WCA’s homing in on SAWIS is in reaction to South Africa Wine’s bully-boy playground tactics. By stacking the Wosa board with its own chosen representatives and demanding authority over Wosa’s agenda and operations, South Africa Wine has stripped the international marketing arm of its independence. A similar attitude towards SAWIS has irked WCA who are taking on a “to here and no further” approach in regard to South Africa Wine, with SAWIS being the first scalp in a show of force from the side of Poonah and co.
Yet, Basson’s communication to his producers is commendable and strategic: with Team Poonah lurking and scheming in the dim, dank secretive corridors, South Africa Wine has given the SAWIS matter airing, thus placing itself, its growers and producers on the front foot at this stage of what could turn out to be a major internal battle among the forces running the industry, and with far-reaching consequences.
Enjoyed this article?
Subscribe and never miss a post again.