Article September 2003

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Farm workers want to purchase ... and farm

The New South African Wine Farmers cannot wait to become involved comercially in the wine industry, but they lack capital. Here are three decision makers in the new company: Amelda and Victor Roberths together with Peter Michaels.

It was dear old Abba who sang: "Aha-ahaaa - All the things I could do - If I had a little money". Most wine farmers have probably felt the same at some stage in their business dealings. Even more so the emerging farmers who, as new entrants to the wine industry, are referred to the next office or the next institution only too often.
"We have a business plan in place, we have a letter of credit and an order, but we are not making any headway," says a frustrated Victor Roberths. He is the driving force behind the New South African Wine Farmers (NSAW), a commercial company founded in September 2002.
With 30 years' experience in the wine industry - mostly at Warwick - and various contacts in the community, business, NGA and government circles, Victor has built up an impressive network within the NSAW structure. The company is slanted in two ways: a commercial section, involving two farms and two export companies, and a social section, which focusses on education, a pre-school feeding programme, rehabilitation and tourism.

"The overseas wine buyer is looking for black involvement in the South African wine industry, the government is looking for black involvement and the farm workers themselves are looking for black involvement"

Apart from the five directors of the NSAW and the existing companies that are involved in the network, there is also significant interest and support by members of the Hunting family (owners of inter alia Mystery Peaks Pty Ltd), two overseas investors and winemaker Beyers Truter, who offered his services as supervising winemaker. However, the NSAW is currently targeting local wine farmer investors, who will reap multiple benefits from a partnership with a black empowerment group.
Simonsvlei was the first to seize the opportunity to enter into an agreement of collaboration with the new group. The agreement entails that the NSAW will act as export agent for Simonsvlei wines under the Simonsvlei label, in particular to the rest of Africa. Joint plans for the future include shareholding in the expansion of bottling and warehousing facilities that are on the cards at Simonsvlei.
So many plans and so many opportunities - but for the NSAW the issue of access to capital remains a major stumbling block. Victor says he has already sent a report about the development project to President Thabo Mbeki in December. Next was Thoko Didiza, minister of agriculture and land affairs, and he hopes to be able to meet soon with Ibrahim Rasool, Western Cape minister of finance. So far these efforts have not resulted in any aid. The Industrial Development Corporation (IDC) turned out to be yet another disappointment and referred the NSAW to the Land Bank.
And Sawit - surely that should be the first stop for this kind of group in the wine industry? According to Victor their proposal was turned down without any concrete feedback or reasons, and they are under the impression that it was not even submitted to the Board.
Peter Michaels, chief executive of Platinum Mile Investments - a European and American export company which forms part of the NSAW group - supports Victor's plea. As a successful entrepreneur and experienced businessman, he explains that the planning was thorough and the forecast conservative, and that everything is now awaiting the necessary capital to kickstart the project.
"We are working according to sound business principles," he explains. Both he and Victor emphasise that this is the only basis for the long term success of black empowerment.
A key aspect of the NSAW's future plans is the purchase of two farms that have been earmarked because viticultural and oenological facilities are already in place, as well as mixed farming. Favorable prices have already been negotiated.
Victor explains his vision, namely that the employees on the two farms will acquire a 10% shareholding in the NSAW, and also supply products to the school feeding programme within the bigger picture of the network, while at the same time having access to training at the proposed Wine Business Management Academy. It is an integrated, self-reinforcing and interdependent network - a cutting-edge idea in the context of current international management practice.
Victor's wife, Amelda, is also an important player in the future plans of the group. She is a director of the company and will eventually manage one of the farms. "We want to create opportunities for people to achieve," says Victor, with infectious enthusiasm.
"The overseas wine buyer is looking for black involvement in the South African wine industry, the government is looking for black involvement and the farm workers themselves are looking for black involvement." The NSAW network offers opportunities and solutions for each of these groups, provided the established farmers in the industry come forward to help take the initiative.
"Change through economic development" is the slogan adopted by the NSAW for their business. "We want to promote ownership of land with the assistance and involvement of commercial wine farmers," says Victor.
The NSAW welcomes any input, discussion and financial investments by South African wine farmers. For more information contact Victor Roberths at 082 812 3707.
- Hymli Krige

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