Van Loveren, the well-known Robertson wine farm owned by the Retief family, has finalised a two-tiered and broad- based black economic empowerment (BEE) transaction that has seen the family, together with 116 of its staff and pensioners, purchase a 138-hectare grape farm in the Robertson Wine Valley.

Van Loveren is SA's largest privately-owned wine business, selling approximately 500,000 cases (12 bottles of 750ml each) of wine per year, split about evenly between the Van Loveren and Four Cousins brands.

Unveiling the transaction at a dinner function that also celebrated the 25th anniversary of the Van Loveren brand, Van Loveren marketing director Phillip Retief explained that the farm will be 52% owned by an employees trust and the balance by the Retief family. It has signed a long-term supply contract with Van Loveren Private Cellar to supply grapes to the business at market-related prices, thus rendering the farm profitable within its first year of operation.

A grant from the Department of Land Affairs assisted with the purchase of the farm.

Simultaneously, in a joint venture with the employee trust, Van Loveren is launching the new Five's Reserve wine range, comprising a white wine, a rosé, two reds and a brandy, which will be marketed locally, to the tourist sector, and internationally. The reserve range is 25%-owned by the employees trust.

Retief said he believed the deal fulfills most of the important criteria set out by the WineBEE Charter, currently being finalised by the wine industry.

"Land ownership is an important and emotional element of any such arrangement, but we are confident that with our carefully planned business model and the commensurate development of business and farming skills of our partners, we can sustain the long-term viability of this venture," he noted.

"Everyone involved is hugely enthusiastic and it's a pleasure for the Retief family to share in the growth of the Van Loveren brands with our extended family, in a true sense of partnership."

Niklaas Prins, a trustee of the De Goree Employees Trust who has worked at Van Loveren for 20 years, said: "My colleagues and I are delighted to be involved in this exciting development. Owning a share in the farm gives one a sense of security but we all know that making a success of the grape farming and the Five's Reserve wine range are the most challenging and important parts of the project. We have no doubt that the 'four cousins' (as the two sets of Retief brothers who run the business are known) have the skills and vision to help us achieve our goals."

Earlier this year the De Goree Employees Trust and the Retief family took transfer of the 138-hectare farm, De Goree, in the Goree district of the Robertson Wine Valley, although they had been farming there since May 2005. The beneficiaries of the trust are Van Loveren's 104 existing and retired staff and 12 employees who worked for the previous owners of the farm.

De Goree farm presently has 49 hectares under vineyards, which will be increased over time as improved water rights are received. Van Loveren has signed a long-term contract with the trust for the supply of grapes to its cellar, at market-related prices. Hennie Retief, a viticulturist by training and Van Loveren's production director, will oversee the running of De Goree farm. The four trustees of the trust, Chrisjan Williams, Johanna Prins, Niklaas Prins and Maritsa Jansen, will all be involved in the management of the farm and the development of the Five's Reserve range of wines.

Van Loveren is celebrating its 25th year as a wine brand in 2006. Brothers Wynand and Nico Retief launched Van Loveren wines in 1980 with 500 cases. Part of their ensuing success is attributed to their strong focus on the local market, with less than 15% of the wine being exported.

I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge