As you sip on a delightfully crisp Chardonnay this summer, you might find yourself wondering if the South African wine industry has finally traded in its outdated practices for a more equitable and sustainable approach—like swapping out a rusty old corkscrew for a shiny new one! Or even wonder if the dop system has finally given way to a new era of transformational ownership and equitable employment in the picturesque wine valleys of South Africa?
Painful Past Foregrounds the Taste
With the enticing aromas of sweet grapes and the charm of sunny skies, it’s easy to overlook that the 350-year-old wine industry, which dates back to the arrival of Dutch East India Company and French Huguenot settlers in the Cape, has long been shadowed by a history of pain, persecution, and slavery for the local Black African and Coloured citizens. Wine farming contributes more than R55 billion to South Africa’s GDP and employs 269,069 people across the value chain.
Yet beneath the enchanting tastes and beauty in the winelands of Stellenbosch, Overberg, Franshoek, Paarl, Swartland or Breedekloof, where over 560 wineries churn out some of South Africa’s best foreign currency earners, lies a history of vineyards notorious for some of the most severe labour practices ever known in agriculture. These practices have often echoed the days of slavery and have been starkly reminiscent of the harsh labuor only matched by the American South, serving as a grim reminder of the apartheid regime’s legacy.
No. The smooth reds and whites make little effort to create an illusion that the exploitative, legacy of transgressions is a thing of the past. Not so fast. Here the past continues to linger—poignant reminders that today’s tastes are inextricably linked to troubles of the past.
Sprouts of ESG
Spurred by legislative changes, transforming market demands and pressure from capital markets, leading South African winemakers are scrambling to implement pioneering programmes that will see deep transformation that align to global ESG guidelines for sustainable wine production.
With wine sector watchdogs like the Wine and Agricultural Ethical Trade Association (WIETA) and Fairtrade Africa doubling down their pressure on the South African wine industry to hastily transform its deplorable labour practices, industry stakeholders have conceded that the sector requires greater transparency in practices and compliance with global standards of inclusiveness to address ongoing challenges and vulnerabilities faced by workers.
Winemakers awakening to sustainability
Leading South African wine producers have initiated programmes to address environmental, social, and governance (ESG) concerns in a sustainable manner. These efforts include adopting sustainable vineyard practices like organic, biodynamic, and regenerative farming to conserve water and optimise irrigation. Wineries are also investing in renewable energy sources such as solar and wind power to supply their operations and services, while implementing waste reduction and recycling initiatives to minimise their environmental impact.
Johnnie Calitz, Winemaker at award-winning Glen Carlou winery states the urgency: “To produce one million litres of wine, we require four to eight million litres of water, not including additional needs such as irrigation, hospitality services, and other aspects of the production process. Given the well-documented water challenges in the Western Cape, we have had to rethink our approach to not only reducing water usage but also implementing effective water conservation initiatives”.
Under the social element, wine farmers are beginning to reassess their employment and labour practices, transitioning from apartheid-era terms to progressive and labour-friendly, legislative compliant regime. This transformation includes the implementation of worker welfare programmes, community engagement initiatives, local economic development efforts, and diversity, equity, and inclusion initiatives.
In terms of the Governance component, winemakers are increasingly reviewing and enhancing their ethical business practices and supply chain management to align with regulations and industry standards. The industry is gradually embracing transparency and disclosure regarding ESG practices and performance, stakeholder engagement, and even diversity of Boards of directors.
Standards to overcome a bitter past
South Africa winemakers have certification schemes under the Wine and Agricultural Ethical Trading Association (WIETA), Integrated Production of Wine (IPW) and Certified Heritage Vineyards. According to their website, WIETA is a multi-stakeholder standard, representing both the interests of trade unions, civil society groupings, wine brands and their producers; and they are registered with the Global Social Compliance Programme (GSCP).
Glen Carlou says despite the industry’s continued ways of traditional production, they keep reviewing and adjusting key elements of the production chain. According to Calitz, “It’s important to be ahead to implement transformation standards. It’s a costly exercise if done at once, so we’ve been implementing some of these requirements incrementally.”
But, unlike the US and Australia, where the wine sectors subscribe to voluntary third-party ESG assessments, South Africa’s wine sector has emerged from a complex history of violence and dispossession. The sector’s unique context demands a more comprehensive and deliberate strategy that not only applies ESG standards but also makes a concerted effort to redress the industry’s troubled past and deep economic disparities that have made the Western Cape wine region a poster outpost of inequity.
Editor @lloydnedohe_| With thanks to Johnnie Calitz, Award-winning Winemaker at Glen Carlou, Paarl.
