There is a fresh breeze blowing in from the Cape Winelands bringing with it the hopes, and dreams of the new South Africa —– the South Africa represented by the wine companies of South Africa’s Black Economic Empowerment.

This emerging group of small-business owners has accepted the role of being at the forefront of economic growth in the brave new world that is South Africa today. More importantly, BEE companies seek to claim their rightful place in South Africa’s economic scheme of things and thereby bringing a better quality of life to their people.

A fascinating story, but first, let’s look at a little history.

The 1990’s brought Black Economic Empowerment (BEE) to the South African wine industry.

Originally, under BEE, vine growers and wineries would establish joint ventures with their workers to give them part ownership of either their own farms or adjoining properties, and to transfer skills in winemaking and wine farm management.

As an example, one of the first-born, “Klein Begin” or New Beginnings, was created when Nelson’s Creek Winery gave its farm workers 22 acres of vines.

This gift was in recognition of the contribution of these farm workers who, over a 10-year period, converted a run-down farm into one of the Cape Winelands top vineyards. It is important to understand, however, that New Beginnings was a unique situation, and where land is involved, most empowerment projects will involve a physical sale.

Even though the majority of BEE projects are in conjunction with farm owners and their workers, you will also see this program offered to black companies not necessarily associated with the sponsoring farm.

In addition to BEE, there have also been a number of private initiatives extending vineyard ownership to communities living in the Winelands. The proceeds from wine sales are used to grow the business model and improve the quality of life of the members of the group.

BEE was extended to include formal education through the establishment of the South African Wine Education Trust. The Trust’s primary goal is to boost black empowerment through education and skills development. In 2001 the Vineyard Academy was created to provide technical training and life skills education for vineyard workers. Its aim is to empower vineyard workers through training and thereby increase the competitiveness of the industry as a whole.

In 1998, the Black Association of the Wine and Spirit Industry, or BAWSI, was created. BAWSI membership is drawn from trade unions, civil & social

organizations, and small black businessmen in the wine sector. BAWSI’s primary objective is to transform the South African Wine and Spirit Industry, and to play a meaningful role in empowering black South Africans to become farmers and farm owners in their own right. BAWSI founded its own black empowerment investment company, BAWSI-I, in 2003 to facilitate significant black investment and ownership in the industry. In 2006, BAWSI introduced a commercial initiative that provided for the creation of the South African Black Vintners Alliance.

There are more than 30 BEE wine-related businesses operating in the Cape Winelands that you are sure to hear more about in the future. Companies with names like Women in Wine , Blouvlei, Bouwland, Ses’Fikile, African Roots, New Beginnings, M’Hudi, Lathitha Wines, Vunani and Pumlani Wines to name only a few.

You will find a wide range of participation within this group of new entries to the marketplace. Some are landowners while some are still part of an existing estate. Some maintain arrangements with existing estates to make wines to specifications while others are operating as brokers. An issue with all companies, and an issue that exists with the launch of any new endeavor, remains the question of marketing.

South Africa is the ninth-largest wine producer in the world, but it ranks only 33rd in terms of consumption. Obviously, the overall industry has been looking for ways to expand their domestic presence. It now appears a path to domestic expansion has been found through the identification of the growing black middle class as a market well worth pursuing. This new wine consumer also represents a natural market for the empowerment wineries.

Soweto, originally called South-Western Townships, is best known as the sprawling township that grew out of the shantytowns and slums that surrounded Johannesburg in the early 1900s to become the spiritual center of the anti-apartheid struggle. In September of 2005 Soweto held its first wine festival. The event was sponsored by the South African Wine Industry Trust with more than 500 wines from 86 producers featured in what organizers are describing as the first annual Soweto Wine Festival. Presently distributors are targeting Soweto pubs to carry some of the wines shown during the festival. All members of the South African Black Vintners Alliance exhibited at the festival.

The wines produced by BEE wine companies range from average too truly extraordinary. You will also find all are capable of standing alongside any of the competition. As sales of these wines begin to gain success domestically, a few of the larger companies have expanded to the export markets where they are achieving some success. What each may find in the future remains to be seen. This has really been a whirlwind tour of South African Black Economic Empowerment wine companies and we have only touched on some key points. Many fascinating stories still remain. Expect to here more here about this fascinating segment of the worlds wine industry.

Chet Jaworski has worked closely with the BEE companies since May of 2005. His book, Grapes of Hope, is scheduled for release in winter 2007.

The primary target for exports for BEE has been primarily the United Kingdom where success has been good. It seems only natural the USA should follow. Therefore, it is the goal of The Artful Grape to provide these developing companies a platform to show their products and gain needed exposure for their wines and their achievements.

The initial set of wines from four BEE companies is “on the water” and orders are presently being taken for 12-bottle sampler packs containing three wines from each of the four companies.