The Wholesale Merchants The Wholesale Merchants Forum of the South African Forum of the South African Wine and Spirits IndustryWine and Spirits Industry

Submission on the Liquor Bill to Submission on the Liquor Bill to the Portfolio Committee on Trade the Portfolio Committee on Trade

and Industryand Industry13-05-0313-05-03

The wholesale merchants forumThe wholesale merchants forum

A voluntary trade association of producing A voluntary trade association of producing wholesalers – producing, marketing and wholesalers – producing, marketing and distributing alcoholic beverages under trade distributing alcoholic beverages under trade marks in South Africa and internationallymarks in South Africa and internationally

Widely divergent in size and variety of Widely divergent in size and variety of business formsbusiness forms

Involved in any combination of producing, Involved in any combination of producing, importing, exporting, marketing and importing, exporting, marketing and distributiondistribution

Represent 61% wine, 83% whisky, 95% Represent 61% wine, 83% whisky, 95% brandy and 80% of brandy and 80% of flavoredflavored alcoholic alcoholic beveragesbeverages

MembersMembers

Cape Wine and Spirit InstituteCape Wine and Spirit Institute Guinness UDVGuinness UDV Mooiuitsig Wynkelders Mooiuitsig Wynkelders DistellDistell DGBDGB Jonkheer BoerewynmakeryJonkheer Boerewynmakery E Snell & CoE Snell & Co Pernod Ricard South AfricaPernod Ricard South Africa

MembersMembers Cape NegociantsCape Negociants

Stellenbosch VineyardsStellenbosch Vineyards Coppoolse FinlaysonCoppoolse Finlayson Cape Wine CellarsCape Wine Cellars African TerroirAfrican Terroir WinecorpWinecorp VinimarkVinimark Cape Classics ExportsCape Classics Exports Cape Bay WinesCape Bay Wines VinfrucoVinfruco Lost HorizonsLost Horizons Long Mountain Wine CoLong Mountain Wine Co Graham Beck WinesGraham Beck Wines Rockfields WinesRockfields Wines Baarsma SABaarsma SA VinumVinum Western Wines South AfricaWestern Wines South Africa West Coast VineyardsWest Coast Vineyards

MembersMembers

KWVKWV Maiden WinesMaiden Wines African Wines and SpiritsAfrican Wines and Spirits Clear Mountain WinesClear Mountain Wines ML WinesML Wines Historic Wines/Meridien Wine Historic Wines/Meridien Wine

MerchantsMerchants

Objectives of the billObjectives of the bill

The Forum subscribes to and The Forum subscribes to and supports the objectives of the Liquor supports the objectives of the Liquor Bill subject to the comments that Bill subject to the comments that followfollow

Economic empowermentEconomic empowerment

The best point at which to promote The best point at which to promote economic empowerment, job economic empowerment, job creation and small business creation and small business development is at the retail leveldevelopment is at the retail level

Sales by manufacturers to retailersSales by manufacturers to retailers

Previously – manufacturer may sell to Previously – manufacturer may sell to any licenseeany licensee

Now – minister has a discretion to Now – minister has a discretion to allow the sale by manufacturer to allow the sale by manufacturer to licenseelicensee

Revert to previous arrangementRevert to previous arrangement

Sale by manufacturers to touristsSale by manufacturers to tourists

Previously – manufacturer may sell to Previously – manufacturer may sell to the public at registered premisesthe public at registered premises

Now – Minister has a discretion to Now – Minister has a discretion to allow sale by manufacturer to allow sale by manufacturer to touriststourists

Tourist facilities of great importance Tourist facilities of great importance to growing wine tourismto growing wine tourism

Revert to previous arrangementRevert to previous arrangement

General provisionsGeneral provisions

Duplication of legislation should be Duplication of legislation should be avoided avoided

Competition ActCompetition Act Empowerment ActEmpowerment Act Test of accessibility, legitimacy and Test of accessibility, legitimacy and

simplicitysimplicity

SummarySummary

The challenge is to transform the The challenge is to transform the industry without being disruptiveindustry without being disruptive

Offer to assist with technical Offer to assist with technical expertiseexpertise