7 - A Perfect Storm

Summary

This chapter addresses challenges to the KWV system as the overall surplus spiralled in the 1980s and cooperatives began offloading cheap wine onto the market in minimalist packaging. Independent producers and the SFW became increasingly critical of the KWV’s performance of its regulatory functions. The chapter provides an account of Tim Hamilton-Russell’s dogged campaign for the right to produce wine in the Hemel-en-Aarde and to market it as he saw fit. It also addresses the vine-smuggling scandal that broke in 1986, which culminated in the loosening of quarantine controls. The chapter then details how the end of white rule led to government scrutiny of the KWV. After a bitter struggle over the demands of the KWV to hold onto its assets as it converted to a private company, a political deal was struck that enabled part of them be reycled in support of a black empowerment agenda in the industry. The residual control functions were taken over by a set of new bodies. The chapter closes with a brief account of the arrival of international drinks companies and the full merger between Distillers and SFW to create Distell, in an effort to ward off potentially hostile competition.