case study beerenberg 165 years in the making presenters: anthony paech – managing director...
TRANSCRIPT
Case Study Beerenberg 165 years in the making
Presenters:
Anthony Paech – Managing Director Beerenberg
Andrew Doust – BDO Chartered Accountants
& Advisers
Located in Hahndorf in the Adelaide Hills
1. Johann George Paech
1793 – 1875
2. Johann Christian Paech
1821 – 1905
3. Johann August Paech
1860 – 1933
4. Herman Christian Paech
1903 – 1969
Our family origins
Anthony Paech – 1968Managing Director
(married)
Robert Paech – 1969Farm Manager
(married)
Carol PaechFinancial Controller
Grant Paech – 1940New Product Development
The 5th and 6th generations
Sally Jane Paech – 1971No business involvement
NatashaJane
Scott1998
Shannon2002
Management committee (meet monthly)
• Managing Director Anthony
Paech
• Production Manager Matt Noske
• New product development Grant Paech
• National Retail Sales Manager Russell
Heyzer
• Farm Manager Robert Paech
• Financial Controller Carol Paech
Brief business history
• Farm settled in 1838 by Paech Family from Germany
• 1966 Grant inherits family farm from Father,
two sisters paid out and get married
• 1968 Anthony born
• 1969 First crop of strawberries planted
• 1969 Grant's father dies, Robert born
• 1970 Strawberries sold on side of road and first batch
of jam made
• 1971 Sally born
• 1975 Beerenberg brand created
• 1980 New packing shed and jam kitchen built
• 1985 Qantas contract started
• New management talent employed
Brief business history (cont)
• 1989 Anthony graduates in IT, starts in SA
wholesaling business
• 1989 exports start
• 1993 new machines bought and shed built
• 1995 strong exports
• Business poised for growth
• Late 1996 Anthony leaves to study MBA in Perth
Brief business history (cont)
Discussion
1996 – Beerenberg is ramping up – good growth potential. One son is committed to and dependent on the business. The other leaves with no promise of return.
What would you do if you were Grant? What are his options.
Brief business history (cont)
• 1998 Anthony returns to business – General Manager
• 1999 decision made to invest in huge new portion
packing machine and facility
• 2000 machine commissioned
• Good export growth
• New key staff employed
• 2002 Sydney competitor purchased
• Strong Growth in profitability and revenue
Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-051998 1999 2000 2001 2002 2003 2004 2005
Sales history
What drives our family business?
• Satisfaction of seeing products distributed world
wide
• Aussie battler takes it to the world!
• Not the money (but nice to have)
• Pride in our heritage
Looking forward – vision
• Pursue excellence not size • Globally recognised for best quality• Available in every 5 star hotel around the
world• Profitable enough to explore opportunities
Discussion1. What challenges can you see on the horizon for
Beerenberg and how would you suggest they deal with these to avoid future problems?
2. Can you anticipate a potential clash in aspirations between the brothers? How would you manage this?
3. How can Beerenberg use its family origins to compete against the ‘big boys’ in the international market. What are some of the drawbacks for them as a family business as they expand internationally?
4. How would you suggest Beerenberg sustain its entrepreneurial spirit especially given that they now have so much more to lose?
Looking forward - what could cause tension for us in future?
• Different aspirations – how big, motivations for growth
• Burn out
• Risk aversion as the stakes get higher
• How far to stretch the brand
• Introducing more outsiders in core roles
• Defining and retaining our culture
• Sustaining the innovation cycle and retaining a commercial edge
• Industry pressures – supermarkets
• Marriage break ups