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Lourensford wine estate : the first ten years

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The South African wine industry has made huge strides in the global wine market since
one-channel marketing through the KWV was abandoned and the South African
produced wines entered the traditional and emerging wine markets in Europe, Eastern
Europe and the Americas. It did not take the South African wine producers and
marketers very long to shift their focus to the international markets where deals made in
the international currencies held the promise of great profits for successful wine
exporters. With the opening of the markets, the trends and tastes of these buyers also
influenced the wine styles and the way the South African producer managed his
business. Although wine making in South Africa dates back over three hundred years, the re-entering into international wine markets held a great challenge to producers who
were unfamiliar with the forces that dictated what and how things had to be done in the
international wine arena.
The emergence of the new potential for wine producers in global wine markets caught
the attention of successful businessmen who ventured into wine making, as most had
already developed a passion for wine. Dr. Christo Wiese bought Lanzerac wine Estate
in the early nineties, and a few years later bought one of the historic farms in the
Western Cape called Lourensford. He set out to develop this fruit farm into one of the
top family-owned Wine Estates in the country, with the aim of creating a world
renowned South African family-owned wine brand. With a state-of-the-art gravity fed
winery and nearly four hundred hectares of vines planted in less than 8 years, this wine
brand is slowly but surely starting to emerge on the international wine front. The task
ahead is as difficult as the first ten years, but there are a lot of positives and negatives
in the development of this premium wine brand that can be used by other business
leaders in their decision-making when they start out on the journey to develop a brand.
This report documents the first ten years of the Lourensford wine brand and it serves
both as a recording of the history as well as a teaching tool for students in wine
marketing as it includes interviews with people and role players that were involved and
today are still involved in actively building this wine brand. The development of the
Lourensford wine brand was started while the vineyards were still very young, and as
such the quality of the wines were not ultra-premium from the outset. It was difficult to
market these first vintages to get the cash flow right, while at the same time trying to
convince the market that this Estate will eventually be producing ultra-premium wines.
The focus in the beginning was production oriented, but it had to change to a more
market-oriented business. By learning from the mistakes and evaluating the
recommendations of this example, the reader can avoid the pitfalls of building a new
brand and apply the lessons learned in his or her own business. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse wynbedryf het groot vooruitgang op die globale wynmark gemaak
sedert daar in 1994 afstand gedoen is van die KWV se eenkanaalbemarkingstelsel en
die Suid-Afrikaanse produsente weer toegelaat is om hul wyne op die tradisionele en
ontluikende wêreldmarkte in Europa, Oos-Europa en Amerika te verkoop. Dit het nie
die Suid-Afrikaanse produsente en bemarkers baie lank geneem om hul fokus te
verskuif van die plaaslike na die internasionale wynmarkte waar die potensiaal om
handel te dryf in internasionale geldeenhede, die belofte van groot winste ingehou het
nie. Met die oopstel van hierdie markte het die voorkeure en smake van die wynkopers
ook die wyse waarop die Suid-Afrikaanse produsente wyne gemaak en hul
wynbesighede bedryf het, beinvloed. Alhoewel wynmaak in Suid-Afrika meer as
driehonderd jaar lank reeds bedryf word, het die hertoetrede tot die internasionale
wynmarkte ook baie groot uitdagings aan wynprodusente gestel,want hulle was nie
voorheen blootgestel aan die markkragte wat die manier van handel dryf op
internasionale markte beheer het nie.
Die ontluiking van nuwe potensiaal vir wynprodusente op internasionale markte het ook
die aandag getrek van suksesvolle sakeleiers om te begin wyn maak omdat hulle reeds
'n passie vir wyn gekoester het. Dr. Christo Wiese het in die vroeë negentigerjare die
Lanzerac-wynlandgoed gekoop, en 'n paar jaar later een van die historiese plase in die
Wes-Kaap, naamlik Lourensford. Hy het dit hom ten doel gestel om hierdie vrugteplaas
tot 'n top wynlandgoed in familiebesit,te ontwikkel. Met 'n ultra-moderne, gravitasiegedrewe
wynkelder en nagenoeg vierhonderd hektaar wingerd aangeplant in minder as
agt jaar, is Lourensford stadig maar seker besig om naam te maak op die internasionale
wynfront. Die taak wat nog voorlê is net so uitdagend as die afgelope tien jaar, maar
daar is reeds heelwat positiewe en negatiewe lesse wat uit die ontwikkeling van hierdie
premiewynhandelsmerk geleer kan word en wat ander sakeleiers in hul
besluitnemeningsprosesse kan gebnuik op pad na die ontwikkeling van 'n handelsmerk.
Hierdie werkstuk dokumenteer die eerste tien jaar van die Lourensford-wynhandelsmerk
en dien as die optekening van die geskiedenis sowel as die verskaffing van 'n
opvoedkundige hulpmiddel vir studente in wynbemarking omdat dit onderhoude bevat
met rolspelers en mense wat aktief betrokke was, en vandag steeds betrokke is, by die
uitbouing van die handelsmerk. Die ontwikkeling van die Lourensford-wynhandelsmerk
het begin toe die wingerde baie jonk was, en as sulks was die gehalte van die wyn nie
van die staanspoor af van hoogstaande gehalte nie. Dit was moeilik om die eerste
oesjare se wyne te bemark om die kontantvloei reg te kry, terwyl daar terselfdertyd
gepoog is om die mark te oortuig dat die landgoed uiteindelik ultrapremiewyne gaan
produseer. Die fokus aan die begin was produksiegedrewe, maar moes mettertyd na 'n
meer markgedrewe besigheid verander. Deur te leer uit die foute wat gemaak is, en die
aanbevelings te evalueer, kan die leser die slaggate vermy wanneer kritieke besluite
rakende die vestiging van 'n handelsmerk in sy of haar eie besigheid geneem moet
word.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/5484
Date12 1900
CreatorsLombard, Matthys Michiel
ContributorsHerbst, F. J., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
RightsStellenbosch University

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