In a deal that ended the legacy of apartheid, Wal-Mart Stores Inc inked a deal with South African wine label Seven Sisters. Vivian Kleynhans and her six sisters didn't have a lot of economic opportunities until the end of the apartheid in South Africa. Now, their wine brand Seven Sisters has become a recipient of the development fund set up by the world's largest retailer as required by South African antitrust authorities.
In June 2011, Wal-Mart acquired a 52% stake in Massmart Ltd, a retailer in South Africa in a deal valued at ZAR 16.5 billion or USD 1.68 billion. To ensure that Wal-Mart would not undermine local jobs, authorities required Wal-Mart to put up a ZAR 200 million supplier-support fund.
Kleynhans told Bloomberg how she inked the deal. "I inquired about the development fund through Massmart when I visited their head office in Johannesburg in 2011. The fund is supposed to develop small businesses and entrepreneurs in different industries," she said.
Starting this month, the wines of Seven Sisters would now be on the shelves of up to 300 Wal-Mart stores in the US. In an emailed statement, Wal-Mart spokeswoman Katie Cody told Bloomberg, "This product will help us meet our goal of sourcing $20 billion from women-owned businesses around the world for our U.S. business."
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