SA wine brand benefits from Wal-Mart development programme

11 Oct 2012

The Massmart/Wal-Mart Supplier Development Programme is beginning to create opportunity for small local suppliers, as is demonstrated by the success of Seven Sisters, a range of locally produced wines from the Swartland area in the Western Cape, recently introduced to the US market by Wal-Mart.

Launched in South Africa in 2007, the range now offers seven wines, each named after one of the seven sisters who are also the producers of the wine. It is a 100% BEE brand, owned by women and the wines are produced by one of only two black family-owned vineyards in South Africa and have been certified 100% sustainable by WIETA, a non-profit voluntary organisation that actively promotes ethical trade in the wine industry value chain.

Seven Sisters' Bukettraube (Odelia) and Seven Sisters' Cabernet Sauvignon (Carol) were launched in 58 Wal-Mart stores, with expansion expected across the country in locations where Wal-Mart sells wines. There are currently two stock keeping units (SKUs) being supplied to the retail giant's stores. Wal-Mart will focus on growing these two SKUs with Seven Sisters and determine future distribution based on customer's response.

"We are very excited to add the wine brand to our assortment. We believe these wines will be well received by our customers for their value and great quality. We look forward to growing our relationship with Seven Sisters," said Jason Fremstad, Wal-Mart senior wine buyer.

The target retail price of a bottle of the wine in most states in America is $8.97 (approximately R80).

Developing women-owned businesses

Carolyn Barton, national wine buyer for Makro, says, "Women-owned suppliers often battle to make their mark. By keeping their wines on our shelves, we hope to give them a window into the larger-scale retail world."

The group intends to establish further relationships with even more wines from woman-owned wine farms through its Supplier Development Programme. By working with these entrepreneurs, Makro is hoping to offer producers insight into which wines the chain's customers prefer and how to build their brands in the wine market.

Massmart/Wal-Mart has been working with other local suppliers to help them become more competitive by providing them with opportunities to access international markets. Further examples of the benefits of the merger include Lonrho's Oceanfresh hake and Econo-Heat's energy efficient wall mounted heaters, both local manufacturers and suppliers that now have their products listed in the US at Walmart stores. IPL, a subsidiary of ASDA Walmart's UK operation, has been working with suppliers in South Africa to export fresh produce and wines to ASDA, Wal-Mart Canada and Wal-Mart Japan.