Thesis (MComm)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: In an ever-increasing wme market in which the decision to purchase becomes increasingly complicated for the consumer of wine because of the greater variety of wines that are available on the shelves of wine shops, wine producers and marketers are compelled to differentiate their product from the rest of the products. This can be done by finding more and better ways of providing the consumer with correct information to support the decision to purchase. Such information should support the consumer in the place where the decision to purchase must be made, namely at the shop shelf. This is where the packaging, which includes the label, is the main source of information. Correct information is a relative concept and the aim of this study was to determine what the consumer regarded as the most important information on the back label of a bottle of wine. A questionnaire was compiled to collect such information and was distributed in the Boland region. Wine consumers who also are buyers of wine were asked to complete the questionnaires. The results of the study indicated that, although twenty options with regard to information, which were presented in the questionnaires, were all regarded as important, eight of these options were clearly given a greater degree of preference. The challenge presented to the winemaker and marketer is to exercise a selective choice with regard to the information to be accommodated in the limited area of the back label on a wine bottle to thereby adequately meet the consumer's need for information relevant to the particular wine / AFRIKAANSE OPSOMMING: In 'n steeds groeiende wynmark waar die koopbesluit vir die wynverbruiker steeds meer ingewikkeld raak as gevolg van die groter verskeidenheid wyne beskikbaar op die winkelrak, is die wynprodusent en -bemarker geforseer om sy produk van die res te differensieer. Dit kan gedoen word deur meer en beter metodes te vind om die verbruiker te voorsien van korrekte inligting om sodoende sy koopbesluit te ondersteun. Hierdie inligting moet die koper ondersteun waar hy die koopbesluit neem, naamlik by die winkelrak, dit is wanneer hy daar is dat die verpakking, wat die etiket insluit, die hoof inligtingsbron is. Korrekte inligting is 'n relatiewe begrip en die doel van hierdie studie was om te bepaal wat die verbruiker as die belangrikste inligting op 'n wyn rugetiket beskou. 'n Vraelys is opgestel om sodanige inligting te versamel en is in die Boland area versprei. Wynverbruikers wat ook self wyn aankoop, is versoek om die vraelyste te voltooi. Die resultate van die studie het daarop gedui dat, alhoewel al twintig inligtingsopsies in die vraelys as belangrik beskou was, daar duidelik agt opsies was wat voorkeur geniet het. Die uitdaging aan die wynmaker en -bemarker is om die selektiewe keuse te maak ten opsigte van watter van hierdie informasie hul op die beperkte ruimte van 'n wyn rugetiket sal kan akkomodeer om sodoende ook aan die verbruiker se inligitingsbehoeftes te voorsien, met inagname van beskikbare inligting rakende die betrokke wyn.

South Africa’s history of the disempowerment of black people (Africans, Coloureds, Indians, and Chinese), presented the post apartheid government after 1994 with problems of policy formulation around empowerment of the previously disadvantaged groups (PDGs). In the wine industry, one possible way of addressing inequality in the access to economic resources and racially skewed land redistribution is through empowerment labelling of wine. Empowerment labelling of wine may promote competitiveness of wine businesses owned by the PDGs. This will help to address inequality problems in the sector. Skinner (2007) demonstrated that empowerment labelling can benefit South African wine firms in international wine markets because empowerment and Fairtrade labelled wines benefit from import preference in most European Union (EU) countries. This study investigates one possible way in which empowerment labelling may benefit wine firms on the domestic markets for wine. Several wine brands with empowerment attributes are currently traded in domestic wine retail markets in South Africa. Very few of these wine brands are broad-based black economic empowerment (BBEE) brands. If South African wine consumers value black economic empowerment in the wine industry, empowerment attribute labelling may be used to identify empowerment products, and thereby promote the competitiveness of Black Economic Empowered wine businesses. This study sets out to quantify South African wine consumers’ willingness to pay (if any) for empowerment labelled wines. Data for the study were collected in 2007 and 2008. Two methods were used for this purpose using two case studies in the KwaZulu-Natal Midlands. The first method used a revealed preference technique to determine whether a price premium exists on the current wine prices or not. Using the hedonic price analysis technique, linear and log-linear hedonic price functions for wine for two wine retail outlets in the KwaZulu-Natal Midlands were used to estimate the price premium paid for empowerment attributes in this domestic wine retail market. Explanatory variables which were found to influence wine prices were Platter’s Wine Guide quality rating, Reputation of the winery, and BBEE. Tests on the statistical fit of the models using the Park Test and residual scatter plots indicated that the log-linear model had better data fit. These two models could not be compared using the more traditional R squared and F-statistics as they had different dependent variables. The second method used a stated preference technique to estimate wine consumers’ willingness to pay for empowerment attributes of wine in the Kwazulu-Natal Midlands. Personal interview surveys of consumers at a wine cellar were conducted. The monetary value of these consumers’ willingness to pay was quantified using conjoint analysis and the conditional logistic model. Although the revealed preference techniques for consumer willingness to pay for empowerment labels showed that a negative price premium exists for these wine attributes, the stated preference technique revealed a positive willingness to pay for empowerment attributes. The monetary values could not provide the actual willingness to pay as they tended to be close to the hypothetical price of wine used in the questionnaire. This might be attributable to the prices used in the questionnaire not capturing the average actual wine prices for this specific wine retail outlet. Therefore, the monetary values were used as indicators of the ordering of attribute importance by the consumers. The results also indicated that an information gap between consumers and producers may exist. This implies that, provided that consumers are made aware of these attributes, there may be potential for wine producers to earn a price premium on empowerment attributes. Further research is required to determine whether South African wine consumers (a) value empowerment attributes (using stated preference techniques), and (b) are aware of wine brands that have empowerment attributes. The results of this study would aid government in formulating policies that promote the competitiveness of empowerment attributes such as giving machinery or inputs procurement rebates to wineries that are broad-based empowerment compliant, and in so doing, improve the economic position of previously disadvantaged groups. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2011.

Broad-based black economic empowerment (BBEE) is a policy objective in South Africa. Farmworker equity-share schemes (FWES) satisfy several of the empowerment goals specified by the proposed AgriBEE Scorecard. Information about the costs and benefits of subscribing to an empowerment label will help managers to make more informed decisions about empowerment and could therefore promote BBEE. The Thandi label is an initiative to market fruit and wines originating from FWES and farms operated by previously disadvantaged farmers. A case study of the Thandi label was undertaken to determine whether or not the accredited empowerment attribute adds value to Thandi products. An exploratory-explanatory case study was adopted basing questions largely on the theoretical propositions of asymmetric information, the benefits of product labelling and the preconditions for a successful label. Primary data were collected via in-depth interviews with managers of Capespan, The Company of Wine People and empowerment farms participating in the Thandi label. The study made use of in-depth interviews with key informants to investigate issues considered (on theoretical grounds) to be critical in establishing a successful label. Responses were subsequently tabulated and compared, where relevant, across respondents in order to check for consensus views. Results indicate that the Thandi label had not succeeded in differentiating fruit, whereas the Thandi wine label had increased sales revenue and was covering accreditation costs incurred by farms as well as the recurring costs of maintaining and marketing the label. Thandi fruit had not grown its share of the domestic or export markets and did not command a price premium, Capespan subsequently discontinued the Thandi fruit label. Thandi wine, on the other hand, had grown its export market and consumers were prepared to pay a premium for Thandi wine products. The data indicate that empowerment attributes were useful in finding shelf space for products, but that quality is essential to grow market share and to earn price premiums. In short, accredited empowerment attributes can add value to quality products sold to discerning consumers who lack information about empowerment and quality attributes at the point of sale. Empowerment labels must include quality attributes. Government should at least absorb some of the transaction costs confronting producers and marketing agencies in negotiating standards for farms and firms participating in generic empowerment labels. It could also offer auditing services to local accreditation agencies to improve their credibility. Further research estimating consumers' willingness-to-pay for products branded with empowerment labels is necessary to estimate the size of premiums that different products may command. / Thesis (M.Ag.Man.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.