The festive season is nearly upon us and a focal point for many homes is the Christmas Tree. Paul Andrews spoke to the second generation of Sholach Christmas Trees to find out more. As Kelly McKintyre explains, “The McIntyre family have farmed at Wester Essendy for around 100 years. William McIntyre bought the Sholach in 1995, adding to the land he had inherited from his father. Following the raspberry growing history of the family he diversified into growing Christmas Trees in 1992 and ran the business with his wife Jean.” “We are an established family run business based near Blairgowrie, Perthshire and have been selling Nordmann Fir and Norway Spruce direct to the public and via wholesale partners for over twenty years.” Until 2012 the business had been Willie’s concern but things changed dramatically with his death that year. Following his death, the family, Jean and their son Willie and daughters Sarah and Kelly came together and took the collective decision to continue the growth and sale of Christmas Trees as a legacy to him with the trees being grown in Scotland on the family plantation and being sold locally as well as through the family connections in London. As Kelly adds, “The first few years were a struggle. We didn’t have enough mature trees so we had to plant more small trees. It was a huge learning curve as we had to learn how to grow and tend the trees and at that time we only selling via the wholesale route and the business was not making financial sense.” “As a next generation we have all lived in London at some point in our lives but my siblings, Sarah and Willie, have lived there for nearly 20 years. It was Willie who came up with the plan to ‘miss the middleman’ and sell directly to the public in London last year and we added the direct to public sales side to the wholesale business.” Living in Crystal Palace Willie found a great pitch at Crystal Palace Park and as a result of offering a tree in a local pub, they secured a pitch in Tooting and the supply to their pub chain. This was a turning point for the business. As Kelly explains, “Off we trundled with an artic lorry full of trees and Sholach Christmas trees London was born. It was scary! It was a new venture and we invested a large amount of time, energy and money into the planning and execution of it. Thankfully all the hard work has paid off but we still have a long way to go!” As a family firm business revolves around the wholesale of trees locally in Blairgowrie and Perth together with the pop-up shops at Crystal Palace Park and the Graveney and Meadow in Tooting, London. Kelly is justifiably proud of their achievements which are made all the more real by the fact that the siblings all have other ‘day jobs’ besides working in the family business. “It’s a real family affair. My mum, Jean, does the finance and accounting side of thing whilst I do the social media, website and photography as well as running the Crystal Palace site. Willie does the management and works on the trees and general logistics of everything from London.” The nest generation, G3 are also getting used to roles in the family firm because since leaving school, Kelly’s son, Conall has started seasonal work and as well as having a job with an accountancy firm in London her nephew helps out distributing marketing fliers and putting up banners.” Sister Sarah helps out after her work in London and so do friends and family. Firm favourites are the Norway Spruce, ‘The Traditional Christmas Tree’ which is back in fashion and provides the classic smell and memories of Christmas Past so if you’re ‘pining’ for the nostalgia of Christmas past this is the tree for you. Overwhelmingly the most popular choice is the Nordman Fir, the non-needle-drop-variety that has a fine symmetrical, pyramid shape and strong branches. It’s big, glossy green needles are soft to touch, and it is often the tree of choice for all the family to decorate. Sholach Christmas Trees embodies the very essence of what being a family firm represents. Commitment, shared vision and strong values at their core with a next generation demonstrating real purpose and desire to continue a legacy in memory of their father. As Kelly concludes, “It’s hard work running a family business the way we choose to do so as we all have our ‘day’ jobs but we’re passionate about continuing dad’s legacy an creating something sustainable in his memory. The Sholach really is a magical place and we have a lot of enjoyment there throughout the year in spite of the hectic two months around the harvest and selling period!” A family firm with real purpose that truly embodies the sentiment of this time of the year. Visit www.sholachfarm.com to find out more.

The results of the 2019 Family Business Survey published by Family Business United are in and the family business community has spoken. The latest report identifies the things that are on the boardroom agenda and the topics that are keeping business owners awake at night. Download and read the full report below:

Everything about your family business is personal: the decisions you make, the goals you pursue and the legacy you leave. Running a family business requires a balance of business imperatives, emotional bonds and personal values of the family. This personal approach is the guiding principle of the latest PwC report entitled Agents of Change: Earning your licence to operate, which draws insights from a survey completed by almost 1,000 members of the next generation in family businesses (the “NextGens”) around the world to help distil a sense of what you need to succeed. The results are striking, and strikingly consistent across sectors and continents. As Peter Englisch, Global Head of Family Business at PwC explains; “You told us you are deeply committed to your family business and have extremely high ambitions for it. But you also identified the challenges you face as you seek to prove yourselves as agents of change. These are compounded by what we know from our survey of the current generation. They are not convinced NextGens are ready to step up.” “Here you will find the results of the survey, as well as recommendations built around you and the way you want to contribute to your family business, which we believe will resonate as you seek to earn your licence to operate.” Download and read the full report below:

Establishing a governance framework for your family business can improve business performance and help satisfy the expectations of all family members. Indeed, this step may be essential if the business is to keep on producing the rewards the family has come to expect. This stage is often reached when the founder of the business relinquishes day-to-day control of the business, or when it reaches a size and complexity unsuited to informal and unstructured management styles. Continuation of family ownership and control can be fraught with difficulty. In business, as in life, families don’t always see eye to eye. Family members can have different expectations and ambitions for the business. Family disputes can paralyse management of the enterprise, endangering ongoing family control and, sometimes, the very existence of the business. It’s important for families to recognise that a family business has a life of its own that transcends that of the family. It’s why a professional and structured approach to the management of the business serves everyone’s best interests. It’s also why we’ve established the 10 Rules of Good Governance: Establish a family council to approve key strategic business decisions, resolve family disputes and decide how to distribute the wealth generated by the business. Appoint an effective board, including independent directors. Define the respective roles of board and management and appoint the best person available as CEO. Conduct board meetings constructively, making them business focused, not family focused. Make decisions methodically, covering all the relevant issues. Develop a clarity of vision that leads to a proper strategic planning process. Understand and manage your business risks. Look for the ‘bad news’, ensuring that problems and irregularities are not overlooked or ignored. Monitor and evaluate business performance, highlighting key trends and issues. Create an effective assurance framework embracing management controls and internal and external audits. About the Author - Dominic Pelligana, KPMG. Reproduced with the express permission of Family Business Australia, a partner of Family Business United and the peak body for family and private business in Australia.

The nation raised its glass last night as St Austell Brewery took home three titles from the 2019 Family Business of the Year Awards, including the overall Family Business of the Year. They were been crowned Supreme Champion at the National Family Business of the Year Awards (‘FBOTY’) in a glittering ceremony at the prestigious May Fair Hotel in London. It was an incredible night with two more awards for Best Food and Drink Family Business, and the regional title for the South West. The Family Business of the Year Awards, organised by Family Business United, celebrate the vital contribution that family businesses of all sizes play in the UK economy. Innovation, investment, passion and pride are evident in family businesses across the UK confirming that the family business has much to celebrate. With around 5 million family firms in the UK providing around 12 million jobs and generating a significant contribution to GDP, these national awards certainly help to put the family business sector on the map and give them the recognition they deserve. St Austell Brewery are the largest regional brewer and wholesale wine and spirits distributor in the South West with a pub and hotel estate of 180 managed and tenanted sites. Paul Andrews, Founder and Managing Director of Family Business United explained: “St Austell Brewery is a fantastic family firm and is highly deserving of all the plaudits that winning this award brings.” “This is a family business with core values that enable them to provide places that inspire and products and experiences that delight. The judges were impressed with the very nature of who they are and what they do. They are proud of the families that have worked for them for generations, have solid governance and above all, great products that build on their family heritage.” “In their own words – they are proud, they have heart, they deliver excellence, they are one family, they innovate, and they nurture. They are a world class drinks and hospitality company helping to put the South West and family firms across the UK on the map. With strong family values permeating all aspects of the business, strong governance and a vision for the next generation, they really do exemplify all that is great about being a family business.” concludes Paul. Clare Reid of Seven Investment Management who presented the award as sponsors confirmed, “This is a family business with a remarkable history and heritage that remains relevant to the current day. Family is very much at the heart of all they do and they are a superb example of a great British family firm and one that is setting the bar for others to follow.” The 2019 awards attracted a record number of entries with more family firms than ever, from across the UK, competing for the awards. The winners were announced at a glittering ceremony at The May Fair Hotel in the heart of Mayfair, London on June 6. James Staughton our Chief Executive who is fifth generation added: “This is a fantastic award to win and I am incredibly honoured to accept the award on behalf of everybody at St Austell Brewery. We are a proud, independent, family-run business that’s been around for over 165 years but without the support of everyone involved in our constantly expanding and complex operations, we wouldn’t be the success that we are today.” “Our heritage is extremely important to us and the Hicks family crest, originating in the 17th century, still forms a central part of our corporate branding. Tribute, our flagship ale, was named in tribute to the family and those who built the business. To win this great accolade against such worthy competition makes us very proud and we are glad to be contributors to the strong and vibrant family business community across the UK.” Paul concluded, “It’s a privilege to organise these awards and to find out more about the fantastic family firms that are the backbone of the UK economy. St Austell Brewery is one such firm – a great family business, a great family business ambassador and a well-deserving winner of the title of Supreme Champion Family Business of the Year 2019.”

Hearing about embezzlement in a public company rarely shocks anyone, but when it happens in a family business, people are often stunned. “How could he steal from his own family?” “Doesn’t she know she’s hurting her siblings/cousins/parents?” ​As tough and painful as embezzlement is, it’s not as uncommon as many of us would like to think. Sure, the kind of embezzlement that results in jail time is rare, but other levels of it happen daily. ​How could this happen? Many factors lead to embezzlement, including chronic financial strain, a general sense of family entitlement, lack of internal company controls,and the reality or perception of being overworked and underpaid. To make matters worse, often the embezzler doesn’t even know that what he or she is doing is wrong. ​Here’s an example of how embezzlement can start small and quickly grow: Jim (the business owner’s son) fills up his gas tank once on a Friday and pays for it with the business account, knowing that the miles he drives will be primarily for personal, not business use. He tells himself it’s okay because he has filled the tank on his own some weekends and used “his gas” for business use on Monday and Tuesday. Then he takes a few vacation days and doesn’t record it as paid time off. He picks up gift cards for employee recognition and pockets a few for himself. He knows that Dad pays him less than local competitors, and this is the way he evens it out. He notices other family members treating the business the same way, so it simply becomes the “way we do things around here”—it is their company culture, not embezzlement. ​The misuse of company assets, time, and money escalates. Soon, Jim adds a non-working family member to payroll, petty cash disappears, one out of ten customer checks are rerouted to Jim’s personal account, and personal items are consistently charged to the business credit card. Eventually, an employee in accounting notices and agonises about who and when to tell. ​So while embezzlement starts small and often innocently in a family business, it can quickly escalate to something big that damages the business, hurts non-family employee morale, and breaks family trust. Take Action ​What do you do when you realise a family member is embezzling from the business? Action is obviously required, and taking a cautious, thoughtful, respectful approach is wise. To begin, have a pre-meeting of key leaders, without the suspect family member present, to address the following questions: 1. Do we have clear, hard, verifiable facts before we assume fault and intent? 2. Who will be at the meeting to lay the facts out? 3. Are we going to involve the legal system? 4. If we continue employment with this family member, do we need to change their job position? 5. How or will we message this to the rest of the family? To other employees? To the Board of Directors? 6. How or did the company contribute to this problem? 7. If the company did, what steps will we take to prevent it in the future? 8. How or did the family contribute to this problem? 9. If the family did, what steps will we take, as a family, to prevent it in the future? 10. Has this family member had chronic, known problems with finances? 11. Generally, how can we protect the company from future misuse of company assets or embezzlement? 12. How do we protect the whistleblower? 13. Do we have a whistleblower programme set-up internally? Are employees trained annually? 14. Do we talk openly in Family Council about our responsibility to financially protect and care for company assets? Do we give specific examples of what is and is not allowed? 15. Do we have a solid non-compete clause in our employment contracts and/or employee handbook in case we have to release the family member from employment? 16. Do we consistently run a professional background check on applicants? 17. If I need to walk the family member out the door, how do I prepare? Computer security, locks, passwords, current company asset retrieval, bank account access protection, social media tracking, last paycheck, etc. 18. Do we need to involve the corporate attorney, Board of Directors, outside legal attorney, CPA, business psychologist? If so, when and how? ​Once you’re clear on these aspects, it’s time for the second meeting—this one with the suspect family member. When you begin the meeting, keep it at the level of discovery. Lay out the facts and ask the family member their perception of what happened. Really listen to what they say and how they say it. Remember, it’s common for family members not to realise that they are indeed embezzling. If this is a first offence, and if the embezzlement is not excessive, some education may be the best course of action. However, if you believe the family member knew what he or she was doing and did it anyway, or if the embezzlement is substantial, termination may be the only option. ​During the meeting, you need to be vigilant in checking yourself by asking “What would I do if this wasn’t a family member?” and “Is this at a level where I will be able to trust them again?” Your answers to these two questions will reveal a lot about your best action plan. Keep Your Family and Business Strong ​Of course, education of all employees (family and non-family), strict policies about how the company’s assets and resources can be used, and enforced controls that can spot any wrongdoing are the best ways to reduce your family business’ chances of falling victim to embezzlement. Acknowledging what could happen, along with some planning to prevent it, will keep your family and business strong, successful, and honest.

A practical insight into some of the questions that need to be considered when creating a constitution. The best way to start creating a formal Family Constitution is by clarifying a number of key issues, including: Why the family want to be in business together? What is this all about? What is the ‘glue that bonds us to each other and to our shared investment in the family enterprise?’ What returns are we looking for? These questions might sound obvious; but the tricky part is that the reasons why a family want to stay connected through a family enterprise often change over time. It cannot be assumed that whatever drove one generation will necessarily persuade the next generation to devote part of their lives to the family enterprise. For example, founders are often motivated by the entrepreneurial dream of being in control of building a new venture and creating a legacy to pass to the next generation. But the next generation face a different challenge. Are they committed to preserving and extending this legacy? Do they have a shared understanding of what it is? Does it mean as much to them as it did to the founders? Does the family want the family enterprise to continue because it provides them with career opportunities, or a good investment, or because it is their name above the door, or because they feel responsible to the other stakeholders, or because it is good fun or because it is a bit of each of these and some other things besides? A very important point about understanding the shared purpose in a family enterprise is that it is usually a combination of financial and emotional reasons. This is one of the things that makes family enterprises different from other types of business. In non-family enterprises, it is assumed that the sole purpose is increasing shareholder value for the current owners. In contrast, the reasons why a family want to be in business together might be a mixture of the following: Providing the desired level of financial security for a growing family. Achieving a lifestyle. Creating, preserving and/or extending a legacy of family ownership to pass to the next generation. Pride in a brand (especially if it’s the family name) or a reputation for being a family enterprise. Providing career opportunities for family members. Attachment to a particular industry, product or geographical area. Keeping a growing family in touch with each other as they get on with their own lives and grow up and grow apart. Putting something back through philanthropy. This is not a tick list and every family has to articulate their own version of a shared purpose. But when the family understand why they are in business together, there is no doubt that this can be a great strength. The “glue” binds them together and makes them willing to stick with the family enterprise through thick and thin. Equally, the absence of a clear shared purpose poses significant risks and dangers. Without it, as time unfolds, there will just not be enough “glue” to bond the family members to each other and to their collective investment. In the absence of “glue”, things tend to fall apart. And when this happens, it often results in the family’s wealth and their personal relationships being wasted in needless conflict. When families end up in conflict, it usually involves family members who have different ideas about what they want from their family enterprise. One might want to maximise the return on investment while another wants to preserve and extend a legacy to pass to the next generation of family owners. There is ample scope for conflict here but the real problem is perhaps that these family members should never have been joined together in a family enterprise in the first place. Articulating and writing down the shared purpose, and putting it at the front of the written Family Constitution, makes it far easier for individual family members to decide whether a role in the family enterprise will either help them achieve what they want for their lives or constrain them and thwart their own ambitions. The standard against which family members should be encouraged to measure their enthusiasm for the shared purpose is ultimately very practical; is it “good enough” for me to want to be part of the family enterprise, in whatever role(s) I choose; owner, executive, leader or family member. The standard of “good enough” is, frankly, as good as it can be in the real world, and if it cannot be achieved in the eyes of some, then the practical question that needs answered is how to let family members who do not want to be in the family enterprise exit gracefully, and allow others, who have a sufficiently strong sense of shared purpose, move forward together. If structures are created that bind people into a family enterprise against their will, the feelings of reluctance, disappointment and even coercion will leak out eventually, usually with troublesome consequences. Reproduced with permission from Your Family Constitution, published by Family Business Solutions.

History dating back to 1829 makes Lionel Samson Sadleirs Group second oldest family firm in Australia. Lionel Samson & Son was founded in 1829 by two brothers who came to the Swan River Colony on one of the first settlement vessels. In 1936 Lionel Samson acquired R. C. Sadleir, which had opened for business in Fremantle in 1895. Together they continue to be the second oldest family business in Australia. On the 5th August 1829, Lionel Samson and his younger brother William stepped off the Calista barque on South Beach in Fremantle, Western Australia. Purchasing Fremantle town lots 27 and 28, Lionel Samson started a merchant liquor and general import-export business. In the 1880s Lionel Samson and Son was the single largest importer of beers and spirits into Australia. Their import range included numerous British wine, spirits and beers from producers such as J.Jeffrey Brewers, Charles Ashby Brewers, Samuel Alsop Brewers, Gilbey Wines and Spirits. Lionel Samson and Son was also an agent for Richard Johnson and Nephew Limited, an ironmaster and wire drawer. R.C Sadleir was established in 1895 as a Customs, Shipping and Forwarding Agents on the corner of Cliff Street, Fremantle. John Sadleir the firm’s founding father was of Irish descent and had already been in Australia for forty years. By 1898, Lionel Samson’s business had grown substantially, having benefited considerably from its involvement as a major merchant satisfying demand from the Western Australian gold rush. During the 1914-1922 period, the Sadleirs business relied largely on horse-drawn transportation in the Fremantle region. In 1925 Sadleirs moved from horse to a fleet of motor lorries and in 1955 the company fleet consisted of 21 vehicles. In 1923 RC Sadleir Pty Ltd. registered as a company and was acquired in 1936 by Lionel Samson. 2012 saw Sadleirs and Lionel Samson and Son join to become what is now known as the Lionel Samson Sadleirs Group (LSSG) and it continues to be the second oldest family business in Australia.

Porrelli’s have been making award-winning ice cream since 1925. Family owned and run the business now serves over 60 delicious flavours. Paul Andrews met the third and fourth generation in the family business, Enzo Durante, his wife Ines and daughter Serena. It was back in 1925 that Gerardo Porrelli emigrated from San Biagio in Italy to Scotland. Along with his family Gerardo settled in Paisley and to this day the family are still Paisley based, fully integrated into the local community. Gerardo began to produce delicious ice cream using traditional Italian recipes and was also operating ice cream vans servicing the housing estates in Paisley and surrounding areas. The next phase of the business was to start wholesaling and delivering ice cream, sorbets and frozen desserts to the catering market, restaurants and cafés. “It has been a wonderful journey,” said Enzo, “and we are all extremely proud of what we have achieved so far and excited for what the future has in store.” “Although much has changed in the world since production began all those years ago, we still make luxury ice cream using our own original recipe the way we did when the business started with little having deviated from the original recipe over the years, it is with pride that I can say that we still make one of Scotland’s favourite ice creams today,” he adds. Enzo is the grandson of Gerardo and has worked in the business since 1978 when he started learning the business from the ground up. He worked in stores, production, had a period as a multi-drop driver, then settled into production and eventually took up the role of Production Manager then Operations Director in 1989. His wife Ines joined Porrelli’s in 1991 in an administration role before becoming Finance Director and their daughter Serena became marketing manager in 2010 ensuring that this remains very much a family business. There is a real passion for ice cream within the family and a pride in what they do, constantly driving innovation and investment to ensure that quality products are made from the best locally sourced ingredients with a production team that are constantly developing new and exciting flavours and making sure that the quality and consistency remains exceptional. Over time the business out-grew the original production facility which led after much deliberation to build a new custom built factory in 2008. As Enzo explains, “We had a number of choices such as leaving the Paisley site and moving to a new facility or developing the existing factory to enable us to expand production and move the business forward. We decided that what began in Paisley should remain in Paisley and decided to invest in the existing site and build a new state-of-the-art ice cream factory.” This resulted in a new factory, upgraded equipment and processes and a production capacity in excess of 6,000 litres of their delicious ice cream every day. That equates to over 1.4 million litres of ice cream a year! As Enzo explains, “We also have the capacity as a niche manufacturer to custom blend any flavour of ice cream requested and can make small batches too which is a real differentiator for us in the market. We also have an innovative production team who come up with new flavours all the time such as Nutty-Ella, Iron Brew and Malty Teaser but the most popular flavours remain Traditional Double Cream Vanilla and everyone’s favourite, Scottish Tablet ice cream” The business has come a long way since Enzo joined the firm in 1978 and he reflects fondly on the early days too as the third generation now at the helm. “I was fortunate to be introduced to the business at a young age which allowed me to learn and adopt the strong family values from my uncle and family involved at that time.” “As an SME the team are really important to the business and we have a core of staff that have been with us for many years who live and breathe Porrelli’s just like we do as a family,” explains Enzo adding that “they care about the products and know what needs to be done even before being asked to do it!” Porrelli’s have a diverse and loyal customer base from independent restaurants, hotels, cafés, bars, ice cream parlours and wholesalers and also supply a retail range to Asda and Sainsbury’s in Scotland. They have a fleet of refrigerated vehicles that allows them to make deliveries to over 450 direct accounts within a 70 mile radius of their base. Quality and provenance are important and a lot of the ingredients are locally sourced while some pastes and inclusions are still sourced from Italy, retaining the historical family links to the country that Gerardo left all those years ago. This is a family business success story built on an entrepreneurial vision, unique recipes and hard work, underpinned by a strong ethos and family values. Decisions are evaluated and the long term plan considered. As Enzo explains, “I have always been cautious and fairly old school not to overstretch the business and only spend what you can afford without putting the business under too much financial pressure. The investment was a big step for the family and the business but it has allowed the business to move forward and build for the future.” The next generation is already actively involved in the business and Serena although responsible for the marketing of Porrelli’s is bringing her own stamp to the business with a degree of diversification too. Along with her husband, the family have created a new consumer experience in Glasgow, Loop and Scoop, where there are opportunities to enjoy churros and ice cream, Porrelli’s of course! As Serena adds, “Loop & Scoop is the UK’s first ice cream & churros bar. A love of ice cream, great coffee and the desire to create something a little different for Glasgow inspired us to develop the concept with a unique menu includes a range of handmade ice cream and churros produced onsite using the highest quality ingredients.” As for the ice cream, it really is delicious, full of flavour and velvety smooth. As Enzo concludes, “Our ice cream is a reflection of who we are as a family firm. It needs to be honest, consistent and of a quality that reflects our desire and drive to produce an exceptional product. Being a good employer is also important to us as a business and our staff are truly integral in all that we do. For us as a family firm, quality is the name of the game.” It is true to say that generations of Paisley families have indulged in Porrelli’s ice cream and with the next generation already involved, the future looks bright although they are still playing it cool!

Bambino Mio are the most widely used reusable cloth nappy brand in the UK with an award-winning range of products that are loved by parents all over the world. Paul Andrews spoke to Founder, Guy Schanschieff MBE to find out more. Bambino Mio, is founded on the principles of quality, convenience, style, comfort and value for money. As a business they are committed to developing products that are better for babies and the environment. Their aim is to deliver a superior customer service and product experience enabling parents to focus on the joys of parenthood with the intention of making reusable nappies commercially acceptable worldwide. Run by husband and wife Guy and Jo Schanschieff, Bambino Mio is based in the heart of the English countryside in Northamptonshire. As Guy explains, “I knew from a young age that I really wanted to run my own business and Jo had been working as a management trainee at Marks & Spencer when she was made redundant so we decided to take some time out to look for our ‘big idea.’” It all began in 1991, Guy and Jo were travelling through India where they met an American at the Taj Mahal. Over dinner they got talking about a reusable nappy laundry service offered in New York, that was it, the seed of an idea was sown. Later on during their travels the concept was brought up in conversation in Sydney and so on returning to the UK, Guy and Jo set up a reusable nappy laundry service from their home in Northampton, and although the laundry service showed slow growth, Guy and Jo were convinced reusable nappies were the way forward. As Guy continues, “It became apparent that reusable nappies were increasing in popularity, but the demand of a laundry service was limited as parents soon realised how easy they were to wash and how much money could be saved by doing so. We understood at this stage that the business was never going to be scalable but had built up a loyal customer base and learnt a lot along the way.” As a result, in 1997 Guy and Jo started to sell reusable nappies and associated products directly to parents through mail order and the business began to grow. As Guy adds, “In 1999 we secured our first national account and then went to the 2002 trade show in Cologne to look for new market opportunities. This resulted in our first international distributors in Spain and Malta. Growth continued over the next few years and turnover rose to £2 million by around 2007 which was split between the UK and overseas markets.” Like many other businesses, in 2010 the recession took its toll. Pretty much overnight the orders from the US and France stopped and the business was facing an uncertain future. As Guy explains, “This was a difficult time for us as a family and the business too and in hindsight, the next few years were tough and involved some difficult decisions. We did manage to turn things around and provide the platform for future growth and this is probably my proudest moment in business to date.” “Nobody saw the dip coming and so there was not time to prepare, we just had to get on with things and so we took the opportunity and delivered growth with the supermarkets in the UK and through a digital marketing strategy too. The digital strategy enabled us to go international directly and changed our business model that had previously been distributor led. As a business we grew by approaching potential customers directly which worked incredibly well for us and led to lots of new and exciting opportunities such as supplying the three biggest pharmacies in Germany,” continues Guy, As a family owned business, Bambino Mio invests for the long term with significant investments over the years coming in the integration of new IT systems and new appointments to strengthen the management team. Currently having 42 employees and turnover of £7 million, the digital marketing strategy has clearly worked and proven to be a worthwhile investment and as a business, Bambino Mio have managed to successfully use digital platforms where others are struggling. Guy is aware of the way that the business is growing and accepts that there are challenges too. “We are on a fast train with exciting growth projections and are moving on constantly. Challenges are always present but we see them as great opportunities going forward such as the integration of new skills to help drive the growth, investing in new social media and ecommerce operations and for a small firm of only 42 and 15 different nationalities, we need to make sure we retain the culture and essence of who we are as a business,” he explains. Growth is on the agenda and as Guy and the team are aware, “It is all about managing the resources and the space that they need to grow. We wake up to a different challenge every day but that is the exciting part about being involved with a business like ours,” he adds. “There is a culture at Bambino Mio and everyone buys into what we are doing. Historically, like other businesses cashflow was an issue but the recession and the attitude of the banks forced us to drive all the borrowings from the business and with no borrowings now we realise how much we are saving each and every day and it certainly helps us to sleep better at night too!” Relationships are key to the business in all areas – management, employees, customers and suppliers and form the core of what the business stands for too. “We do our best to make all the relationships work and have great staff and customers who appreciate what we do and how we do it. As we continue to evolve as a business there will inevitably be change but we’ll always remember the journey we have been on and where the business has come from and continue to build on what we have got now. Who knows where we will be in ten years time but the future is certainly exciting,” adds Guy. In terms of the family and the next generation it is still early days. “All of them have done their bit already, working in the school and university holidays but they range in age from 13 to 22 so there is plenty of time for them all to decide what they want to do in the years to come and there is certainly no pressure from either Jo or I for them to follow us if that is not what they really want to do. We’ll support the decisions that they make,” continues Guy. It has been a great journey to date and one that has resulted in Bambino Mio becoming a well established brand too. Now, 27 years later, since the day they discussed nappies at the Taj Mahal, a wedding, 3 children, an MBE, over 50 awards and products available in more than 70 countries worldwide; Bambino Mio is the largest and most accessible reusable nappy brand in the world. Bambino Mio may have grown in size but the core family values remain the same, to manufacture high quality, simple, reusable nappies and associated products and make them accessible and affordable to all. For more information please visit www.bambinomio.com

Robert Scott is a fourth generation family business with a ‘spotless reputation since 1925,’ with Alastair Scott currently at the helm. Fourth generation family member at the helm, Alastair Scott, is particularly proud of their history dating back over 90 years to when the business was founded by James Scott in a cotton mill. “We are now one of the last working cotton mills in Lancashire and for me, there is a lot that our founder would be proud of – knowing that we are still a champion for the local economy, the community, industrial heritage and British manufacturing. However, we cannot and do not rest on our laurels and need to keep pace with innovation too,” explains Alastair. As a business, Robert Scott is one of the UK’s largest designers, manufacturers, importers and stockists of cleaning products for the professional janitorial sector and probably best known for making mops – they sell over half a million every week which is a staggering 26 million mops a year! With a huge product portfolio of over 4000 products (mops make up less than 30% of the business) the range is designed to keep pace with the very latest cleaning and hygiene innovations, regulations and rigour of the sector too. Their wide range includes everything from microfibre cloths and medical cleaning trolleys to rapid response cleaning systems and mops, much of which is manufactured at the mill in Lancashire where they employ more than 250 staff, many of whom have been working in the business for years and are the latest generations of families that have worked in this family firm. Family firms that survive the generations like Robert Scott not only need to remain current but to move forward with the times and that is something that Alastair is well aware of, feeling a level of responsibility for the business and those that have a stake in it. “We need to be a business that is fit for the 21st century and can remain successful as there are lots of people involved who rely on the business too. I take the position seriously as custodian of a long-standing business in the community, a business that our team has worked to help build over the years, growing from £4.5 million turnover when I became sales director to over £50 million today. I am really proud to have been part of this journey and board knows we have had the support of a great team to work on successfully growing the business too,” explains Alastair. Alastair was not always destined for the leadership role and took a path that many other family business leaders will associate with. His father was forced into the family firm by his grandfather and had no choice about what he was going to do but as Alastair explains, “my father was totally the opposite with the four of us and I was brought up always knowing that there were opportunities in the wider world outside of the family firm.” Alastair seized the opportunity going to college to pursue an education in architecture, media and design but once he had completed his education found that there were few jobs available. A job came up as a sales rep in the family firm and Alastair took it, seeing it as a temporary employment solution initially. As he expands, “I had the advantage of knowing the business because I had been involved over the years, holiday jobs and the like, so I had the knowledge and accepted the role. I took the job as a ‘regular employee’ and with no moral pressure from above and the proviso that I could leave whenever I wanted should another job come up. What started out as a rather temporary role became other things and I am still here today, many years later!” Alastair is aware of the challenges associated with family businesses, in particular, the next generation, and although two of his children are now working in the family firm, a son helping to load the lorries and a daughter in telesales, he is very real about the future. “Who knows where they will end up,” he adds. “Both have taken on roles within the business like I did, possibly as a temporary measure, although that never turned out to be the case for me so we will just have to wait and see what the future has in store for the business, but if we have to introduce professional non-family leadership to guide the business in the future then so be it.” “We cannot simply employ family because of their name and their heritage, we have to employ the right people in the right roles to get the job done – there is too much at stake and it is not fair on each and every employee if we take on the wrong people, and it would not be good for the business either,” he continues. Alastair is also one of the lucky ones – he loves his job and loves to go to work each and every day. “You spend so much time at work and that is great for me because I love it. I do feel that my role is to an extent, a custodian of the business for future generations, and there is a responsibility to the employees too. It is a great business and everyone pulls together to make it work,” he adds. A great example of them coming together was when the mill flooded a few years back which was a tricky time for everyone. The team came together with the directors and the staff pulling together to mop the floors, load the lorries and safeguard the business. A difficult time but the cohesiveness of the team, the loyalty of the staff and the shared values and desire to work through it really came to the fore. As Alastair adds, “It is at times like these that you appreciate that the broader stakeholders really care and want the business to succeed and it reinforces the differentiator that we have as a family business over non-family firms.” Alastair made a silent promise to himself when he took up the lead role, that he would retire when the business was generating £1 million turnover a week but as he is now quick to point out, “I am not going anywhere yet!” Robert Scott is a market leader and continues to deal with day to day challenges, such as competition, rising costs, what the next generation are going to do and how the business is going to expand to the next level. They are currently involved in a rebranding exercise to help them achieve the right balance of heritage and innovation and to prepare themselves for the next 90 years and beyond. Proud of their roots, proud to be a British manufacturer and proud to be based in a mill in Lancashire, Robert Scott is a family firm with a lot to look forward too and is clearly serious about cleaning and over the years has clearly cultivated a much deserved, ‘spotless reputation.’ www.robert-scott.co.uk

Golden Casket is one of the largest and most innovative confectionery specialists in the UK and has been growing successfully for nearly 60 years with brands dating back to the 18th century. The business is now run by the second and third generation of the Rae family. Paul Andrews went to meet them to find out more. It was back in 1959 that the journey began. Douglas Rae, a qualified banker with £100 in his pocket set out to create a business to market confectionery from scratch. His family, friends and colleagues within the banking sector thought he was mad but Douglas had a vision. At that time, young bankers were poorly remunerated and with a young family Douglas was looking for a way to provide for his family and concluding that banking was not the route for him, took the plunge and set up his own business distributing confectionery to the independent retail sector across Scotland literally operating out the back of a van which he christened his Golden Casket. Within a couple of years, the company moved into its first premises in Greenock with the exclusive rights to distribute the Daintee brands, Kunzle Cakes and Bensdorp confectionery. Sales grew over the course of the 60’s especially through the Kunzle Cake brand and by 1968, Golden Casket had 12 salesmen and an annual turnover of over half a million pounds. Then in 1969 Charles Forte acquired Kunzle which was not good news for Golden Casket as it virtually signalled the end of the relationship that had been significant in their growth to date. As Crawford adds, “On acquiring the Kunzle business Forte naturally wanted to have the profitable Scotland operation for himself so in exchange for the Scottish Kunzle business, Forte agreed to give Golden Casket the Scottish agency for Fuller’s, a business that was famous for manufacturing cakes, chocolates and sugar confectionery.” Fuller’s was a sister company of Terry’s of York which was also owned by Forte. Business continued and soon the team had built up sales to replace the Kunzle sales. Two years later and another key moment in the history of the business took place, partly as a result of the values and relationships that Douglas and the team had already demonstrated. Terry’s announced that Fuller’s was to be sold with negotiations already taking place with an American manufacturer who saw the acquisition as a route for their own products into the UK market. This was potentially a devastating blow to Golden Casket so Douglas immediately headed to York for talks with the Terry’s board. A deal was struck that resulted in the acquisition of Fuller’s by Golden Casket. Sales of Fullers Twin Bars and chocolates continued to be manufactured in York and premises had to be found to pack and wrap the Fullers lines in Greenock. Golden Casket signed a 10 year lease for premises at Fort Matilda in Greenock which had been used formerly as a torpedo factory during WW2. The empty units with broken floors and dirty walls with no electricity were turned into offices and a production and packing facility and in 1972 Golden Casket acquired Campsie Confectionery and brought all their manufacturing equipment to Greenock. Terry’s were a real asset throughout as they continued to make products during the period of construction, sending people to train the staff in Greenock once the factory was ready and for the first five years after opening continued to help making products to satisfy demand. This support for Douglas and the team was embodied in the words of Terry’s Chairman and Managing Director, Ian Johnston, “who said that ‘big business’ does not have a kindly face?” In 1976 Golden Casket were approached by old established confectionery manufacturers, Buchanan’s of Scotland, to see if they would be interested in making their extensive range of products under ‘own label’ terms as their Glasgow factory in Shieldhall was being forced to close. As Crawford explains, “I was a bit of a mechanical geek at school and at weekends I was fortunate enough to work with an engineer from the packaging machinery company Rose Forgrove helping him rebuild equipment. That was to be an excellent grounding for the years to come because in 1976 I went into the business to learn the fantastic art of sugar confectionery, manufacturing the unique Buchanan’s lines. This new production boosted the weekly output from our Greenock factory and the Buchanan’s brand became such a significant part of our production that my father negotiated the takeover of Buchanan’s under a unique settlement arrangement that is still in vogue to this day.” Manufacturing continued to expand with new business being added to the mix and new brands acquired. In 1987, the manufacturing company Fuller’s Ltd was sold to John J. Lees Plc and all production ceased in Greenock. All of the manufacturing equipment was removed from Greenock and set up in the new Fullers factory in Port Glasgow. Golden Casket were once again a marketing and distribution company concentrating on the Buchanan’s brands which remained under the ownership of Douglas Rae while being manufactured elsewhere. Sales of Buchanan’s products continued to increase however quality issues and difficulties with supply saw Douglas’s son Crawford leaving his position of Production Director at Fuller’s to start manufacturing once again from scratch at Fort Matilda initially with only 6 members of staff to concentrate on the Buchanan’s products. Two years later the business of Drysdale & Gibb was acquired as it fitted comfortably into the niche market occupied with pride by Buchanan’s. 1995 saw the acquisition of ailing English company, Caramel House Ltd based in Merseyside and the business and production was also moved to Greenock. Another pivotal moment for the business took place in 1990 with the launch of a new range called ‘Millions’ which was the brainchild of Douglas Rae. Millions, the tiny, tasty chewy sweets, available in different fruit flavours, became an instant success through innovative tube packaging developed on specially modified equipment at Greenock, the Millions brand has grown each year with worldwide sales currently approaching 2000 tonnes per year with further expansion in the pipeline. At the same time that Millions was introduced the ‘Half Pounders’ range was also launched, an equally important contributor to the growth of the business. The range encompassed more than 60 varieties of sweets, all with the same price for each variety. Half Pounders has become the private retailers ‘own label’ brand and is now only available through the private sector under the £OnePounder brand post metrication. Further growth came in 1998 with the acquisition of Hills of Hawick whose main product, Hawick Balls, enjoyed a high profile through the constant PR generated by Bill McLaren, the well known rugby commentator. A further and interesting acquisition took place in the summer of 2006 when Scotland’s oldest confectionery manufacturing company, J. & A. Ferguson Limited of Glasgow was purchased. This business started in 1794 and produced some of the finest chocolates manufactured in the UK. Each and every year to date the turnover of Golden Casket has increased and it has become one of the most successful confectionery companies, and the largest, in Scotland. Part of the success is undoubtedly down to the entrepreneurial spirit, determination and drive of its founder, Douglas Rae, but he was the first to admit that the success could not be down ‘to just one man.’ He recognised that the ace card was the fantastic quality and depth of the products and innovation which were produced and headed by his son, Crawford along with his team in the factory as well as recognising the dedication and knowledge of the all the other committed staff, many of whom have worked for the business for years. As Crawford explains, “We are a tight knit family business. Today my two sons, my daughter, my brother-in-law, cousin and nephew all play vital roles within the business. Our primary focus of servicing the independent retail sector through our sales network remains as strong today as it did back in 1959. Our confectionery is manufactured by our family for your family.” My Father Douglas Rae OBE, sadly passed away in June last year and up until a couple of years ago remained extremely active having given almost 60 years building the company. He was a wonderful father and mentor who is sorely missed.” There were so many highlights in his business life, culminating in his OBE two years ago for services to business and sport and then posthumously having a street in Greenock named after him was great recognition and very special for all of us.” Our philosophy has always been to produce the very best confectionery and to deliver best value and service to our customers. Our people very much buy into our philosophy so it’s no coincidence that 35% of our staff have over 25 years of service with us.” We now employ over 150 talented craftsmen and women across our day and nightshift patterns, across 28 production and packing lines from out A PLUS BRC-Accredited, nut free factory” Crawford is the second generation of the family to lead the firm which is already looking to the future with three next generation actively involved in the business in sales, production and marketing. The future is on the agenda because as Stuart Rae, third generation Sales Manager explains, “None of us are immortal and we have a broader responsibility to everyone involved. Douglas was an inspiration, he believed he was immortal, working each and every day and sadly passing away recently. He would be proud of how we are moving the business forward and it is important to plan for the future too. We all have clear roles and responsibilities which helps to ensure that everyone knows what they are responsible for, and whilst our heritage is important and helps top define who we are as a family firm, the future is what really matters. We continue to invest in new plant and machinery and are excited about the continuing journey for the business too.” This is a true gem of a family business, a ‘treasure trove of sweet treats’ with innovation at the heart of all they do. Part of their unrivalled success is undoubtedly due to the determination and entrepreneurialism of the Rae family to continue the business that was set up by Douglas Rae back in 1959, marrying tradition and modernity. This is a family business at the heart of the Inverclyde community, a business that strives to be the best and one that continues to be innovative and push boundaries, investing for the future with a perfect balance of the old and the new paving the way for years to come. As Crawford concludes, “We are proud to be a family owned, family run manufacturing business based in Greenock and it is great to see the next generation already actively involved in all that we do. You would be forgiven for thinking we are an old fashioned company. Certainly, our values are traditional but great attention is paid to keeping the taste and quality consistent and we are always full of new ideas, looking forwards all the time. Innovation is at the heart of our business and we look forward to continuing the business in line with the values, drive and aspiration upon which we have been built by our founder, investing, modernising and making sure we remain fit for purpose for the next generation and beyond.” To find out more please visit www.goldencasket.co.uk