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Abstract
After more than seven decades of regulation and protection, South African
wine cooperatives were brutally exposed to the market and international
competition in the early 1990s. How did they respond to these new
challenging environments? In a number of case studies we show that
although the wine cooperatives share a general thrust of technical
modernisation and upgrading, they also diverge considerably in their
organizational innovation, strategy and business models. In their adaptation,
the wine cooperatives were aided by the fact that they possessed features of
“new generation cooperatives” and the space granted by legislation, putting
them in a position to go beyond the latter. It remains to be seen whether
these organizational innovations are sufficient to meet the next big
challenge, namely to get off the bulk wine trajectory and “move up the value
chain”.