Appendix 1: Definitions of central concepts

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Appendix 1: Definitions of central concepts

Wine¹

The wine industry in South African context is much wider than signified by the ordinary meaning of a word “wine”. Brandy and its building blocks (rebate wine and distilling wine) have always formed a significant part of South Africa’s wine industry. In recent years grape juice and grape juice concentrates for use of non-alcoholic beverages, and not just for the sweetening of drink wine, have also come to the fore. The South African wine industry thus encompasses drink wine (natural, fortified and sparkling), rebate wine, distilling wine, brandy and other spirits distilled from distilling wine, and grape juice and grape juice concentrate from use in drink wine and non-alcoholic products.

Drinkwine is a wine fit for drinking as wine in the ordinary sense of the word.

Drinkwine includes:

• Natural Still Wine is a non-fortified and non-sparkling drinkwine, including perle wine, which is drinkwine, carbonated to the extent that the pressure in the container in which it is sold is between 75ml and 300kPa. It also includes any grape juice or must concentrate used in the sweetening of such natural wine.

• Fortified Wine is non-sparkling drinkwine which has been fortified with wine spirit. It includes the volume of wine spirit used in the fortification process.

• Sparkling Wine is drinkwine carbonated (either by fermentation or by impregnation with carbon dioxide) to the extent that the pressure in the container in which it is sold is more that 300kPa. It includes any grape juice or must and grape juice or must concentrate used in the sweetening of such sparkling wine.

• Rebate wine is wine specially prepared for double distillation in a pot still and then, as distillate, maturation for a period of at least three years in oak casks with a capacity of not more than 340 litres.

•

Distilling wine is wine specially prepared for distillation to spirits intended for use in brandy or othe spirits, for fortified of drinkwine or for industrial purposes.

1 This section was copied from the KWV website:

http://www.kwv-international.com/pressoffice/company_communications/general_info_trends.htm

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When we speak of “a wine” in this report we mean a specific bottle of wine that constitutes of a specific cultivar or blend of cultivars and is made in a specific way (wooded/ un-wooded etc.) to taste a certain way, taking into account environmental influences varying per year. We do not distinguish between vintages.

Wine producers

• estate wineries, which can make wine only from grapes grown on their own land;

• co-operatives, which on a communal basis process the grapes of their farmer member shareholders into wine – these co-operatives alone have invested vast amounts in production equipment and they press about 80% of South Africa's total wine harvest;

• independent cellars and a number of wholesalers who buy in both grapes and wine, and make wine for bottling under their brand names, as well as making wine from grapes grown on their own wine farms.

(http://www.wosa.co.za/OVERVIEW_page2.ASP)

Terroir

'The French word for the combination of soil, climate, geographical site and aspect in which the vine is grown, and which, when all is in balance, determines the eventual character or signature of a wine.' (Dave Hughes - South African Dictionary of Wine)

In my quest for terroir, I asked De Wet Viljoen, winemaker at nearby Neethlingshof, the exact meaning of the 'T' Word. He ducked the question, saying he always quotes wine writer James Wilson. Pulling a book off his cellar shelf, he read, 'As you contemplate the wine in your glass, recognise it has a personality - it comes from a place with a name and a history. It has relations, a family, possibly very distinguished.' On a tour of what Viljoen calls 'Neethlinghof's 9 different terroirs', he also talked terroir in terms of the diversity of the soils, the different aspects, temperatures, row orientations, altitudes.

(http://www.wine.co.za/news/news.aspx?NEWSID=6817&Source=NewsFeed)

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Appendix 2: Interview

Questionnaire South African Wine Industry February 2005

Jordan Bish & Sebastiaan van Dorssen jebish@home.nl - dorssen@home.nl University of Groningen

Faculty of Management & Organization Postbus 800

9700 AV Groningen The Netherlands

Logboek / Belafspraken Datum gebeld:

Datum terugbellen:

I Date

II Time Start: End: = ………minutes III Interviewer

IV Winery V Name owner VI Address VII Phone number VIII Name respondent IX E-mail address

X Website

This questionnaire is part of an academic research initiated by the Universities of Groningen and Stellenbosch. We are two graduate students who are writing their thesis in the South African Wine Industry.

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Subject

There are numerous award shows & ratings in which the quality of wines is evaluated.

The subject of this research involves the impact of awards & ratings on the strategic behaviour of South African wine producers.

It is interesting to see how strategies have been and can be changed upon the results of these third party endorsements.

What is going to be studied?

We will collect data in a variety of ways. We have spoken to wine producers in order to explore the general business issues concerning South African wine producers. With this knowledge we constructed this questionnaire that will give detailed insight in the strategic behaviour of wine producers in relation to award shows & ratings. Together with general information on award shows & ratings collected elsewhere, we should be able to answer the following research question

To what extent do award shows & ratings of experts influence the strategic behaviour of South African wine producers? And what is the relative influence per award show and rating

Project size

The project concerns South African wine. We aim to involve a minimum of 40 producers.

The total time frame estimated is 6 months.

Results

The results of the project might be used for publication. All data input will be treated confidentially and will be used in an aggregated way only. The results are interesting for wine producers who want to explore business strategies. The thesis will be available upon your request.

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General

1. Does your direct e-mail address correspond with our information?

Yes (1)

No? Correct address… (2)

2. What is your function within the farm?

Marketing manager (1)

Finance manager (2)

General manager (3)

Viticulturist (4)

Winemaker (5)

Owner (6)

Founder (7)

Other function… (8)

Strategy

23. Do you have a short-term business strategy? If so, who has input on the

creation?

No, we don’t have a strategy (1)

Owner (2)

General Manager (3)

Marketing Manager (4)

Viticulturist (5)

Winemaker (6)

Finance Manager (7)

International Agents (8)

Someone else, please fill in… (9)

24. What in general, is the strategy based on?

Awards shows Wines

Owner (1) (1)

General Manager (2) (2)

Marketing Manager (3) (3)

Viticulturist (4) (4)

Winemaker (5) (5)

Finance Manager (6) (6)

International Agents (7) (7)

Someone else… (8) (8)

Don’t know (9) (9)

N/A (10) (10)

(10)

Result of last vintage (sales) (1)

Local demand forecasts (2)

Foreign demand forecasts (3) Results of competitive wineries (4)

Other… (5)

N/A (6)

25. MATRIX 3

Do you analyze the results of the following competitions and ratings when … [rows] … and if so, what is the importance of each competition/ rating in doing so on a scale of 1- 5?

26. Do you benchmark against certain competitors? If so, please name them and on what do you benchmark.

Within district Within SA International Competitor/

Benmarked on...

Competitor/

Benmarked on...

Competitor/

Benmarked on...

27. Do you take actions to increase the likelyhood of getting your wines rated by individual wine critits or judging panels (e.g. Wine magazine, Platter, Wine Spectator)?

No, we don’t take actions (1)

Press releases (2)

Sending in your wines (3)

Phoning the critics (4)

Advertising in wine media (5)

Public tastings (6)

Organizing special events for critics (7) Winning renown award shows specifically to target other experts

(8)

Other action... (9)

Don’t know (10)

28. Do you take actions to prevent competitors from copying your wines?

No, we don’t (1)

Keeping exact harvest date a secret (2)

Keeping exact harvest time a secret (3)

(11)

Keeping the amount of yield a secret (4) Keeping (parts of) the vinification process a secret Æ

Fermentation (5)

Temperature (6)

Amount of skin contact (7)

What chemicals are added (8)

Maturation (9)

Other... (10)

Other... (11)

Don’t know (12)

Export

29. Do you use awards and ratings as a tool to influence your exports (to increase sales and prices abroad). How important are they in your export strategy?

Please score on a 1-5 scale.

I don’t use awards/ratings (1)

Awards (2)

Ratings (3)

30. What other methods do you use to influence your exports?

I don’t use other methods (1)

Advertising in wine media (2)

Attending trade shows (3)

Agent incentives (bonuses etc.) (4)

Other; please fill in (5)

31. MATRIX 4

Could you please rank the following awards/ ratings on their impact on turnover in the country in question? Assuming that you win gold (or equally prestigious). If you don’t know you can leave the space blank.

32. In what ways did/ do you try to get in touch with new foreign agents?

Targeting specific award shows (1)

Targeting specific ratings (2)

Attending trade shows (3)

Advertising in wine media (4)

Contact agents directly (5)

We do nothing (6)

Don’t know (7)

N/A (8)

33. “When starting to export, participating in as much (international) award shows as possible is essential.”

(12)

Totally Disagree Totally Agree

(1) (2) (3) (4) (5) (6) (7)

N/A (8)

Don’t know (9)

(13)

Cultivars

34. On how many ha have you planted new-cultivar-vines in the last 5 years?

0 ha (1)

1-5 (2)

5-10 (3)

11-15 (4)

15-20 (5)

20-25 (6)

More (7)

35. Have you noticed what cultivars have had a tendency to do better in awards/ ratings industry-wide over the last 5 years than other cultivars? If so, please check the individual cultivars.

Please check only one red and one white cultivar

Awards Ratings

No, I haven’t noticed (1) (1)

Cabernet Sauvignon (2) (2)

Merlot (3) (3)

Pinotage (4) (4)

Shiraz (5) (5)

Other red… (6) (6)

No I haven’t noticed (7) (7)

Chardonnay (8) (8)

Sauvignon Blanc (9) (9)

Chenin Blanc (10) (10)

Colombar (11) (11)

Semillon (12) (12)

Other white… (13) (13)

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36. What aspects do you take into account when deciding on what cultivar(s) to plant?

1 2 3 4 5 N/A D/N

Cultivar(s) highly rated ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾ Cultivar(s) well awarded ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾ Cultivar(s) used by important

competitor (benchmark)

(1) (2) (3) (4) (5) (6) (7)

Local market demand ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾ Foreign market demand ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾ Location potential* ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

Other aspect… ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

*= Location might restrict certain cultivars to be planted due to environmental factors (terroir)

37. Who have an input when deciding what cultivar to plant?

Owner (1)

General Manager (2)

Viticulturist (4)

Winemaker (5)

Finance Manager (6)

Someone else… (8)

Don’t know (9)

N/A (10)

Sourcing grapes

38. Do you buy in grapes, used for the production of natural wine, at this moment?

Yes, we do (1)

No, we don’t (2)

39. How many grapes do you currently buy in?

Also fill in amount

0-20% (1)

20-40% (2)

40-60% (3)

60-80% (4)

80-100% (5)

Don’t know (6)

N/A (7)

(15)

40. Do you source grapes from more than one farm?

No, just one (1)

More than one, please fill in number (2)

Don’t know (3)

N/A (4)

41. Is/ are the farm(s) you source grapes from located in the same

district?

Yes, all of them (1)

Some of them are/ some not (2)

No (3)

Don’t know (4)

N/A (4)

42. Do the farm(s) where you source your grapes, also produce their own wines?

Yes, some do (1)

Yes, they all do (2)

No, they don’t (3)

Don’t know (4)

N/A (5)

43. What aspects do you take into account when deciding on where to source grapes? Please score the importance of each aspect on a 1-5 point scale.

1 2 3 4 5 N/A D/N

Grape producer highly rated ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾ Grape producer well awarded ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾ Grape producer used by important

competitor (benchmark)

(1) (2) (3) (4) (5) (6) (7)

Proximity of grape producer ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

Terroir ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

Cost of grapes ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

Other aspect… ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

44. Who have an input when deciding on where to source grapes?

Owner (1)

General Manager (2)

Viticulturist (4)

Winemaker (5)

(16)

Finance Manager (6)

Someone else… (8)

Don’t know (9)

N/A (10)

Winemaker

45. How long has your winemaker been working on your wine

farm?

<1 year (1)

1-3 years (2)

4-6 years (3)

> 7 years (4)

Don’t know (5)

N/A (6)

46. How many different winemakers have you had working on your wine farm in the last ten years?

1 (1)

2 (2)

3 (3)

4 or more; please fill in number (4)

Don’t know (5)

N/A (6)

47. Has your winemaker won awards for his wine producing qualities (e.g. Diners Club Winemaker of the year)?

Yes, he has;

Please fill in awards + year

(1)

No, he hasn’t (2)

Don’t know (3)

N/A (4)

48. Let’s say you are about to appoint a new winemaker. Please comment on the following statements: “A winemakers reputation (stated in the amount of award winning wines produced) influences the reputation of the wine farm and therefore leads to…”

1 2 3 4 5 N/A D/N

Increased sales ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

Increased sales prices ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

More awards ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

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Higher ratings ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

Other effect… ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾

49. ”A winemaker knows before hand whether he’s producing a well awarded/ highly rated wine.”

Totally Disagree Totally Agree

(1) (2) (3) (4) (5) (6) (7)

N/A (8)

Don’t know (9)

50. What were/ would be your concerns regarding the decision of which winemaker to appoint? Please score each possible concern on a 1-5 scale.

1 2 3 4 5 N/A D/N

Winemaker highly rated (1) (2) (3) (4) (5) (6) (7)

Winemaker well awarded (1) (2) (3) (4) (5) (6) (7)

(Profile of) winemaker working for important competitor (benchmark)

(1) (2) (3) (4) (5) (6) (7)

Education (1) (2) (3) (4) (5) (6) (7)

Working experience abroad (1) (2) (3) (4) (5) (6) (7)

Years of working experience (1) (2) (3) (4) (5) (6) (7)

Experience with varieties used (1) (2) (3) (4) (5) (6) (7)

Salary (1) (2) (3) (4) (5) (6) (7)

Other concern… (1) (2) (3) (4) (5) (6) (7)

51. Who have an input when deciding on which winemaker to appoint?

Owner (1)

General Manager (2)

Viticulturist (4)

Old winemaker (5)

Finance Manager (6)

Someone else… (8)

Don’t know (9)

N/A (10) 52. Would you like to receive a copy of the thesis?

53. May we contact you if we have any further questions?

Yes (1) No (2)

(18)

Yes (1) No (2)

(19)

19

Main components: 10% minimum

Natural still wine type ⇓

Cabernet Sauvignon Shiraz

Pinotage Merlot Cinsaut Noir Ruby Cabernet Cabernet Franc Pinot Noir Other Red Chenin Blanc Colombar Sauvignon Blanc Chardonnay Cape Riesling Semillon

Weisser Riesling Other White

% of total turnover

% of total profit

% of total exports (turnover)

% of total exports (cases) Introduced in the last 5 years?

Bestselling red & white (1999) Bestselling red & white (2002) Bestselling red & white (2004)

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) New cultivars planted in the last 5 years?

Ma tr ix 2

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MATRIX 2

Consumer Award shows Ratings (non-blind tasting) Wine critics (magazines)

Please give your opinion on the ability of …[column]… to evaluate the following dimensions of a wine properly

Please score the importance of each dimension on a 1-5 point scale.

General colour & appearance Aroma & bouquet

Intensity of flavour Balance

Cleanliness Depth of palate Length of palate

Do you explicitly take the above-mentioned dimensions into account to score well in the eyes of … [column]…

Please score the importance of each dimension on a 1-5 point scale.

“Do you think scoring well in the eyes of …[column]… influences …[row]… “ Please score on a 1-5 point scale.

Gaining market entry (domestic) Gaining market entry (foreign) Increasing sales (domestic) Increasing sales (foreign) Increasing prices (domestic) Increasing prices (foreign) Other…

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Consumer Award shows Ratings (non-blind tasting) Wine critics(magazines)

To what extent do the following aspects…[rows]… influence ...[column]...

quality conception

Please score the importance of each criterion on a 1-5 point scale.

Grape cultivar Vintage

Alcohol content Wine Region Price Label

Form of bottle

Reputation of producer Reputation of winemaker Advertisements

Recommendation by wine critics Results in award shows

Results in ratings

Recommendation by (other) consumers Other benchmark…

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Experts & Producers of Cultural Products Page 22 of 40

MATRIX 3

National

International

2 for the production of grapes for natural wine

FCTWS = Fairbairn Capitol Trophy Wine Show SAA = South African Airways

DCWY = Diners Club Winemaker of the Year

Veritas FCTWS Classic Wine Trophy Juliet Cullinan Wine Masters Awards Michelangelo South African YoungWine Show Other …… N/A John Platter Wine SAA Selections DCWMY Other ... N/A

1) deciding on what cultivar(s) to plant

2) deciding what new wine to produce

3) deciding which region to buy land²

4) deciding on where to source grapes 5) deciding which

winemaker to appoint

Concours Mondial Bruxelles (B) International WineChallenge (GB) IWSC (GB) Other ….. N/A Decanter (GB) Wine Spectator (US) Wine Advocate/ Parker (US) Hugh Johnson (GB) Other ….. N/A

1) deciding what new wine to produce

2) deciding on what cultivar(s) to plant

3) deciding which region to buy land¹

4) deciding on where to source grapes

5) deciding which winemaker to appoint

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MATRIX 4

National

International

Veritas FCTWS Classic Wine Trophy Juliet Cullinan WineMasters Awards Michelangelo South African YoungWine Show Other …… John Platter Wine SAA Selections DCWMY Other ...

United Kingdom The Netherlands Germany

Sweden

Concours MondialBruxelles (B) International WineChallenge (GB) IWSC (GB) Other ….. Decanter (GB) Wine Spectator (US) Wine Advocate/ Parker (US) Hugh Johnson (GB) Other …..

United Kingdom The Netherlands Germany

Sweden

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Appendix 3: Producer Characteristics & Commercial Success Related

The tables below show the correlation coefficients of the wine producer characteristics and the degree to which the producers experience endorsements contribute to their commercial success.

Award Shows % Grapes

Sourced

% Exports of Total Sales

# Cases Produced

Age of Producer Gaining market entry (Domestic) Rho ,155 ,088 -,200 ,082

Sig. ,308 ,626 ,187 ,591

Gaining market entry (Foreign) Rho -,070 -,049 -,091 ,014

Sig. ,646 ,789 ,553 ,925

Increasing Sales (Domestic) Rho -,121 -,177 -,217 -,204

Sig. ,429 ,325 ,152 ,179

Increasing Sales (Foreign) Rho -,128 -,108 -,039 -,095

Sig. ,401 ,548 ,798 ,533

Increasing Prices (Domestic) Rho -,116 -,243 -,140 -,233

Sig. ,449 ,173 ,359 ,123

Increasing Price (Foreign) Rho -,183 -,184 -,073 -,284

Sig. ,229 ,307 ,634 ,059

N 45 33 45 45

* Correlation is significant at the 0.05 level (2-tailed).

** Correlation is significant at the 0.01 level (2-tailed).

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Ratings

% Grapes Sourced

% Exports of Total Sales

# Cases Produced

Age of Producer Gaining market entry (Domestic) Rho ,038 ,065 -,259 -,044

Sig. ,802 ,719 ,086 ,772

Gaining market entry (Foreign) Rho ,102 -,167 -,076 -,206

Sig. ,505 ,354 ,618 ,174

Increasing Sales (Domestic) Rho -,045 -,242 -,216 -,220

Sig. ,770 ,175 ,153 ,147

Increasing Sales (Foreign) Rho ,086 -,189 -,118 -,237

Sig. ,575 ,293 ,440 ,117

Increasing Prices (Domestic) Rho -,136 -,198 -,035 -,326(*)

Sig. ,373 ,270 ,819 ,029

Increasing Price (Foreign) Rho -,039 -,216 ,001 -,328(*)

Sig. ,799 ,227 ,997 ,028

N 45 33 45 45

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Appendix 4: Producer Characteristics & Resource Acquisition Related

The tables below show the correlation coefficients of the wine producer characteristics and the degree to which wine producers experience expert endorsements facilitate the ease of acquiring resources.

Award Shows Human

Resources

Marketing Channels

Loans Production Goods

Capital Goods

% Grapes Sourced

Rho -,126 -,168 -,046 ,133 ,271

Sig ,411 ,269 ,764 ,384 ,072

% Exports of Total Sales

Rho ,020 -,173 ,069 ,009 ,152

Sig. ,910 ,336 ,701 ,960 ,398

# Cases Produced

Rho -,240 -,164 ,063 ,146 ,445(**)

Sig. ,112 ,281 ,681 ,338 ,002

Age of the Producer

Rho ,033 -,100 ,033 ,092 -,046

Sig. ,829 ,515 ,831 ,547 ,766

N 45 45 45 45 45

Bold with * or ** is significant at the 0.1 level (2-tailed).

Ratings Human

Resources

Marketing Channels

Loans Production Goods

Capital Goods

Rho -,073 ,008 -,046 ,133 ,211

% Grapes

Sourced Sig ,633 ,958 ,764 ,384 ,165

N 45 45 45 45 45

Rho -,097 -,323 ,069 ,009 ,130

% Exports of

Total Sales Sig. ,590 ,067 ,701 ,960 ,470

N 33 33 33 33 33

Rho -,194 -,146 ,063 ,146 ,402(**)

# Cases

Produced Sig. ,203 ,339 ,681 ,338 ,006

N 45 45 45 45 45

Rho -,066 -,030 ,033 ,092 ,000

Age of Producer

Sig. ,666 ,847 ,831 ,547 1,000

N 45 45 45 45 45

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Bold with * or ** is significant at the 0.1 level (2-tailed).

(28)

Appendix 5: Producer Characteristics & Strategic Decisions Related

The table below shows the correlation coefficients of the wine producer characteristics and the degree to which experts influence the strategic decisions of the wine producer.

Bold with * or ** is significant at the 0.1 level (2-tailed)

% Grapes

Sourced

% Exports of Total Sales

# Cases Produced

Age of Producer Intrinsic Quality Dimensions Rho -,090 -,099 -,100 ,011

Highly rated Sig ,556 ,583 ,512 ,945

Intrinsic Quality Dimensions Rho -,150 ,012 ,001 ,023

Awarded Sig ,325 ,947 ,992 ,881

Planting Cultivar Rho ,088 ,307 ,065 ,176

Highly rated Sig ,564 ,083 ,671 ,247

Planting Cultivar Rho ,128 ,269 -,039 ,045

Awarded Sig ,403 ,130 ,799 ,771

Grape Supplier Rho -,041 ,325 -,010 ,074

Highly rated Sig ,800 ,079 ,951 ,645

Grape Supplier Rho -,001 ,236 ,093 ,089

Awarded Sig ,996 ,209 ,562 ,582

Appointment Winemaker Rho -,088 -,018 ,116 -,016

Highly Rated Sig ,567 ,922 ,447 ,917

Appointment Winemaker Rho -,111 ,036 ,133 -,012

Awarded Sig ,470 ,842 ,383 ,936

N 45 33 45 45

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Appendix 6: Commercial Success & Strategic Decisions Related

The table below shows the correlation coefficients of the aspects that form “Commercial Success” and the strategic decisions of the wine producer. This has been done for ratings and award shows.

Award Shows Gaining Market

Entry (Domestic)

Gaining Market

Entry (Foreign)

Increasing Sales (Domestic)

Increasing Sales (Foreign)

Increasing Price (Domestic)

Increasing Price (Foreign)

Rho ,277 ,466(**) ,227 ,472(**) ,170 ,243

Intrinsic Quality

Dimension Sig ,065 ,001 ,134 ,001 ,265 ,107

Planting Cultivar Rho ,193 ,264 ,147 ,300(*) ,019 ,050

Sig ,205 ,079 ,335 ,045 ,902 ,742

Grape Supplier Rho ,390(*) ,482(**) ,171 ,410(**) ,024 ,121

Sig ,012 ,001 ,285 ,008 ,882 ,453

Rho ,276 ,456(**) ,093 ,395(**) ,153 ,306(*)

Appointing

Winemaker Sig ,067 ,002 ,543 ,007 ,315 ,041

N 45 45 45 45 45 45

Ratings

Gaining Market Entry (Domestic)

Gaining Market Entry (Foreign)

Increasing Sales (Domestic)

Increasing Sales (Foreign)

Increasing Price (Domestic)

Increasing Price (Foreign)

Rho ,194 ,187 ,181 ,258 ,151 ,131

Intrinsic Quality

Dimension Sig ,201 ,218 ,235 ,086 ,322 ,392

Planting Cultivar Rho -,038 -,017 ,106 ,021 -,144 -,212

Sig ,806 ,911 ,489 ,892 ,346 ,163

Grape Supplier Rho ,157 ,070 ,161 -,039 -,090 -,123

Sig ,328 ,666 ,315 ,809 ,574 ,445

Rho ,085 ,050 ,036 ,079 ,173 ,152

Appointing

Winemaker Sig ,580 ,745 ,816 ,606 ,256 ,319

N 45 45 45 45 45 45

(30)

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Appendix 7: Resource Acquisition & Strategic Decisions Related

The table below shows the correlation coefficients of the aspects that form “Resources” and the strategic decisions of the wine producer. This has been done for ratings and award shows.

Award Shows Planting cultivar Grape Supplier Appointing Winemaker

Intrinsic Quality Dimensions

Human Resources Rho ,143 ,116 ,034 ,125

Sig ,349 ,469 ,827 ,412

Marketing Channels Rho ,284 ,287 ,107 ,306(*)

Sig ,058 ,069 ,486 ,041

Loans Rho ,129 -,208 ,035 ,173

Sig ,398 ,191 ,818 ,256

Production Goods Rho ,000 -,162 ,226 ,236

Sig ,999 ,313 ,135 ,119

Capital Goods Rho ,164 -,041 ,259 ,175

Sig ,282 ,798 ,085 ,249

N 45 41 45 45

Ratings Planting cultivar Grape Supplier Appointing Winemaker

Intrinsic Quality Dimensions

Human Resources Rho ,219 ,146 -,160 ,015

Sig ,149 ,361 ,294 ,920

Marketing Channels Rho ,211 ,221 ,080 ,272

Sig ,165 ,165 ,600 ,071

Loan Rho ,170 -,038 ,107 ,120

Sig ,266 ,813 ,484 ,431

Production Goods Rho ,103 ,012 ,231 ,205

Sig ,500 ,939 ,126 ,176

Capital Goods Rho ,313(*) ,088 ,369(*) ,193

Sig ,036 ,585 ,013 ,204

N 45 41 45 45

(32)

(33)

Appendix 8: Descriptive Statistics of the Respondents

Functions of the Respondents

Function % of cases % of

responses Marketing manager 60.0 27.6

General Manager 46.7 21.4

Owner 40.0 18.4

Winemaker 26.7 26.7

Finance Manager 22.2 10.2

Export Manager 15.6 7.1

Founder 4.4 2.0

Viticulturist 2.2 1.0

217.8 100

Age of Farm and number of years the respondent is working for the farm

Number of years

working for farm

Number of years producing wine

Mean 8,69 47,44

Median 8,00 12,00

Mode 3(a) 7(a)

a Multiple modes exist. The smallest value is shown

Number of years working for farm

35 22 19 18 15 13 11 10 9 8 7 6 5 4 3 2 1

Percent

12

10

8

6

4

2

0

(34)

Number of years producing wine

315 255 95 75 35 24 22 20 16 14 12 10 8 6 3

Percent

12

10

8

6

4

2

0

Table ?.? - District

Paarl 4,4

Roberts

on 11,1

Stellenb

osch 84,4

Total 100,0

District

Stellenbosch

Robertson Paarl

Farm Classification

Percent

Valid Wine Estate 40,0

(35)

Independent

Wine Cellar 53,3

Other 6,7

Total 100,0

Farm Classification

Other

Independent Wine Cel

Wine Estate

Frequencies

Statistics

Permanently employed

Seasonally employed

Valid 43 43

N

Missin

g 2 2

Mean 47,93 27,09

Median 35,00 20,00

Mode 30 0

(36)

Permanently employed

250 120 100 75 62 50 44 35 25 17 9 6 4 1

Percent

14

12

10

8

6

4

2

0

Seasonally employed

150 100 80 60 50 45 40 35 30 25 24 20 18 15 11 10 6 1 0

Percent

30

20

10

0

Wine type % of respondenrts

Natural wine 100.0

Fortified wine 22.2

Sparkling wine 24.4

Rebate wine 2.2

148.9

Number of hectares

under

Hectares of new land in last

(37)

Mean 95,56 3,89

Median 82,00 ,00

Mode 100 0

Bar Chart

Number of hectares under vine

417 250 190 165 150 110 100 91 82 70 60 52 42 34 26 23 7 0

Percent

10

8

6

4

2

0

Hectares of new land in last 5 years

Hectares of new land in last 5 years 50 35 25 7 1 0

Percent

100

80

60

40

20

0

(38)

Number of cases produced in 2004

Number of cases produced in 2004 480

000 35000

0 13000

0 90000 80000 73000 550 42000 00 38000 27500 20000 12000 7500 6500 5300 2500

Percent

7

6

5

4

3

2

1

0

Number of cases produced in 2004

>180000 120000-150000 90000-120000 60000-90000 30000-60000

<30000

Percent

50

40

30

20

10

0

Statistics

Number of cases produced

in 2004

Mean 116773,3

3

Median 38000,00

Mode 12000(a)

a Multiple modes exist. The smallest value is shown

(39)

Percent

Valid 1 55,6

2 28,9

3 4,4

4 6,7

5 2,2

6 2,2

Total 100,0

Number of brands exploited

6 5 4 3 2 1

Percent

60

50

40

30

20

10

0

Turnover in ZAR in 2004

50,0 00,000 26,000,0

00 20,0

00,000 15,

000,00 0 12,0

00, 000 8,50

0,000 7,0

00,00 0 5,00

0,000 4,0

00,000 3,00

0,0 00 1,50

0,000 1,00

0,00 0

Percent

16

14

12

10

8

6

4

2

0

Turnover in ZAR in 2004

Valid 35

N

Missing 10

(40)

Median 8,000,000

Mode 8,000,000

Minimum 1,000,000

Maximum 400,000,000