Confectioners bolstered by business nous
by
Charlotte Knottenbelt
There's
an old anecdote about family businesses that goes along these lines: the
first generation founds the business, the second builds it and the third
stuffs it up. It's a cautionary tale that's been proven incorrect in the
case of the Sims' family, where two UniSA graduates are leading a
fourth-generation family business through an unprecedented period of
success.
As respective CEO and chief operations officer of confectioner Robern Menz, Philip and Richard Sims are carrying on a family tradition that began in 1908 when their great grandfather Walter Sims opened a dried fruit processing factory in Mildura.
But as both will attest, there are some traditions worth holding on to and others that should be let go.
'When you're the fourth generation to hold the reins you do sometimes hear 'but this is the way grandpa used to do it'," says Philip from the company's Glynde headquarters and factory. "On the one hand you need to change to adapt to market conditions and sometimes the older generation are not that open to change, but on the other hand there's no substitute for experience and the old way of doing things is often the best."
It's a balancing act that Philip and Richard have handled well in the last 12 years the company has tripled its staff, increased its range of products and broadened its export markets from the traditional UK, US and European trading partners, to branch out into Asia. Both Philip and younger brother Richard put much of this down to "getting out in the big wide world" and not coming straight into the company.
After finishing school, Philip completed a Bachelor of Business (Marketing) at UniSA's antecedent institution the SA Institute of Technology, and went on to work for Schwarzkopf for four years as a sales manager. Richard gained an Associate Diploma in Business (Industrial Engineering) at UniSA before working as a flight operations controller for National Jet Systems.
"Going to university was never a matter of getting a piece of paper," Philip says. "The focus for me was more about obtaining the skills. What I liked about the course was that it gave you some very pertinent business skills but it didn't limit you to one particular field the people I studied with are now working in just about every industry, from wine to IT to automotives."
With the thought of joining the family business in the back of his mind, Philip chose the grocery industry. "Working at Schwarzkopf gave me a great external grounding in the industry and gave me skills that I could bring back into the business to make changes for the better."
One of the biggest recent changes has been a move towards a greater emphasis on branding. When the Sims' Robern group bought out Menz in 1992 it provided a perfect opportunity to take a well-known brand and continue to build it. Menz became Robern Menz, and South Australia's love affair with such classics as Fruchocs and Crown Mints continued, as new lines and export opportunities were established.
"Before we bought Menz we were very much doing bulk and contract work people would repackage our product under their brand, says Philip. At that stage about five per cent of our product was branded, and that's now been increased to about 50 per cent."
As for the future, does he envisage the fifth generation of Sims taking over?
"I have a 10 month old daughter and Richard has two sons aged three and one. Whether they come into the business, my brother and I agree it's up to them. There won't be any pressure, says Philip.
"My advice to anyone considering joining a family business would be further your education and get out in the wider community so you've got some practical ideas to bring to the business. Work out if you really want to do it because when you join the business there's a fair chance you'll be there for a while."