The Family Business UK Magazine. Featuring an interview with Sir John Timpson CBE, inheritance tax insights from Europe and Sweden and a look ahead to the Autumn Budget 2025.
FBUK The Family Business UK Magazine
l Legacy or purpose? l The succession conundrum l 1698 - A tale of two halves l Westminster spotlight l FBUK Members in the news
June 2024
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Chosen for a reason. Lawyers for family and business.
Founded in 2001 as the Institute for Family Business (IFB), Family Business UK (FBUK) is now the largest organisation in the UK dedicated solely
Contents
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Foreword from Chairman Welcome from CEO
to supporting, representing and championing family business.
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FBUK Board and Executive Team listings
We are a movement of family businesses working to help family businesses create a more prosperous and sustainable future for generations to come. Our supporters range from some of the biggest, oldest and most well-known British businesses, as well as first-generation businesses from across every sector of industry and commerce, from all corners of the UK. Family businesses are the backbone of the UK economy and the bedrock of our communities. For generations, family businesses have put people at the heart of business. They offer a model of sustainable and responsible business that others can learn from, be part of, work with, and even adopt. Family business leaders inherently put the interests of the next generation in mind, take a long-term view, and as the owners and stewards of the business, have greater freedom to experiment, innovate, and invest in their people and communities. They see the values people bring to the organisation as an important asset to be protected and nurtured. For more information about Family Business UK, Membership details, opportunities to become a FBUK Corporate Partner or Sponsor, or for advertising opportunties please contact:
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Policy news
FBUK Manifesto
Legacy or purpose? Steve Rigby, Co-CEO, Rigby Group
FBUK Corporate Partner listings
Programmes and events
Family Business Week
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Westminster spotlight
FBUK Members in the news
1698 - A tale of two halves – Lizzy Rudd, Chair, Berry Bros & Rudd Jonathan Neame, CEO, Shepherd Neame
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Members Resources Centre
A relay, not a marathon - Andrew Moses, Managing Director, The Config Team Board diversity, or di-worsity – Oliver Cummings, CEO, Nurole The succession conundrum – Alastair Macphie, Non-Executive Director, Macphie Group
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info@familybusinessuk.org www.familybusinessuk.org
20 Trusts and family businesses –
Copyright © 2024 Family Businesses UK. All rights reserved.
Clare Stirzaker, Partner, Boodle Hatfield
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Dates for your diary
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intelligent, passionate people who don’t just lead their own companies but serve as inspiration to everyone else. People who have insights that policy makers can learn from, insights that should guide the decisions shaping the economy, which of course impacts millions of jobs, and millions more lives. Our movement is also about learning from each other, and this magazine is a vehicle for doing just that. In these pages you will find stories about FBUK Members who are keen to share their experiences – how they came into their family business, what challenges they faced, how they grew personally. Stories about how businesses have navigated difficult ownership transitions, through
challenging economic environments, over multiple generations – some who have been going for more than three centuries. All shared so that the rest of us can benefit. This open sharing and learning is one of the things that excites me most about being a part of Family Business UK, and I’m pleased that we have been able to support that sharing through publication of this new magazine.
Foreword from our Chairman I’m proud of the economic and social contributions that family businesses make across the UK. We are the bedrock of our communities, and we offer a model of responsible and sustainable business that has inspired a movement.
I hope you enjoy…and learn!
Sir James Wates, CBE Chairman, Family Business UK
It’s a movement fundamentally made up of individual people. Successful,
experts in their respective fields.
part of FBUK. We hope this publication will be yet another opportunity to do that. FBUK is an organisation working to support family businesses navigate the challenges that come with mutligenerational change and succession in a rapidly changing and uncertain trading environment. With that in mind, we also ask you to tell us what we can do to use this magazine as a vehicle to help you do that in the best way possible . Please get in touch: info@familybusinessuk.org
This is the first edition of what is planned as a biannual publication. In this edition you’ll find a mix of first- hand accounts of family business owners discussing a range of topics, perspectives from subject matter experts, and information on FBUK events and activities you can get involved in. With an election imminent, and following the launch of our Family Business Manifesto at the end of last year, we’re also providing updates on our discussions with the leading political parties, as well as an opportunity to hear from them directly. We are continuously looking to create opportunities for our Members, and others involved in our work, to gain as much value as possible from being
Welcome from our CEO
Welcome to the first edition of the new FBUK magazine!
Following our successful relaunch as Family Business UK in 2023, this publication is designed to offer FBUK Members, other family businesses across the country, and those working with and for family businesses a plat- form to have a voice, share stories and perspectives, access thought leadership, and hear from leaders and
In the meantime, we hope you enjoy reading our first edition!
Neil Davy CEO, Family Business UK
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Board of Directors
Sir James Wates CBE Wates Group (Chairman)
Chris Bailey NG Bailey
Chloe Benest Bettys & Taylors
Geoffrey Bibby Bibby Line Group
Charlie Field CPJ Field
Nick Linney W & J Linney
Alastair Macphie Macphie of Glenbervie
Thomas Martin ARCO
Steve Rigby Rigby Group
Neil Davy Family Business UK (Ex-officio)
Executive Team
Neil Davy Chief Executive Officer
Fiona Graham Chief Advocacy Officer
Alan Fitzwater Membership and Marketing Director
Megan Josland Head of Programmes and Events
Adrian Rosario Finance Director
Andrew Catalano Membership Manager
Sylvia Biernacka Finance Manager
Claire Dobson Operations Manager
Sima Kataria Programme and Events Manager
Putting Family Business First
Our Relationship Managers understand the dynamics of a family business and are committed to supporting you at every stage of your journey.
Find out more: Speak to one of our Relationship Managers Familybusinessenquiries@natwest.com www.natwest.com/familybusiness
Turnover and eligibility criteria apply.
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Policy news
At Family Business UK we actively advocate for responsible and sustainable family business governance and leadership. We provide a unified and strong voice which influences the direction of government policy and helps shape the environment family businesses operate in through proactive engagement with government and regulators on policy reform. As the General Election approaches, we have been busy engaging politicians from across all political parties, to ensure they understand how central family business is to our future and success as a country. In recent months we’ve seen a significant increase in our engagement and profile across Westminster and White- hall, with FBUK representatives now sitting on the Govern- ment’s Small Business Council, and DWP’s Occupational Health Taskforce, amongst other groups. We’ve been attending meetings with ministers, shadow ministers, and officials on a wide range of issues including: business sup- port, prompt payment, defined benefit pension schemes, apprenticeships, training, tax and regulation. Our work is not limited to Westminster either. In recent months we’ve held a series of meetings with Members of the Scottish Parliament, including party spokespeople on business, the economy and work.
Business Property Relief (BPR) to the family business community and its long-term success.
We have been clear that BPR is not a ‘loophole’. It was specifically designed to facilitate the handing of a family business from one generation to the next without creating a significant Inheritance Tax (IHT) charge which the business would be unable to pay. Removing it would have a catastrophic impact on the family business sector, which provides jobs for approximately 14 million people in the UK. Over 85,000 family SMEs are expected to transfer ownership of their business to a new generation each year. BPR affords these firms an option to plan for a stable succession while maintaining ownership stability. It also plays a key role in ensuring that these small and medium firms can focus on scaling up their businesses. Around 77% of family SMEs are estimated to be first generation businesses. Without BPR these family firms would lose the opportunity to grow under stable ownership and successfully transition to the next generation. BPR is a perfect example of a relief that achieves exactly what it was designed to: enabling family business to plan for the long term and ensure jobs and prosperity are protected from one generation to the next. Family Business UK is the leading organisation making the case for preserving Inheritance Tax reliefs for family-owned businesses. If you would like to find out how to get more actively involved in our work in this area, email info@familybusinessuk.org
Family Business UK joins new Small Business Council
Family Business UK is delighted to have been appointed to the Government’s new Small Business Council. Chaired by Small Business Minister, Kevin Hollinrake, the Council will work alongside the Prime Minister’s Business Council to tackle the key issues facing smaller firms. The Council will be a powerful voice for small businesses within government and has been tasked with overseeing three key areas for small firms – access to finance, skills and support as well as removing barriers. Inheritance tax and family firms As we head in to the General Election there has been significant speculation about the future of Inheritance Tax, and its associated reliefs.
We have been actively engaging Conservative Ministers and Labour teams to convey the vital importance of
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FBUK Manifesto Ahead of the General Election, we have launched The Family Business UK Manifesto – Taking The Long- Term View which lists policies to unleash the potential of the UK family business sector. Our Manifesto has received support from business leaders across the family business community, including from Rigby Group, Samworth Brothers, Wates Group and ARCO. Family Business UK believes that, for too long, political, industry and business decision-making has taken a restricted approach to investment decisions that respond to the priorities of non-family business PLCs, whose priority is to meet shareholder demands for short-term returns on investments. The UK needs to formulate a growth strategy that encourages and incentivises businesses to focus on longer-term investment opportunities and returns for stakeholders, the environment, and the UK’s role and place in the wider world. The Manifesto sets out a list of key policy recommendations that can provide enormous potential for the family business sector to support economic growth, family businesses, their workforce, and society at large. The policy recommendations fall
l Reviewing the disparity in the tax treatment of debt and equity financing l Developing a stand-alone growth and support strategy for mid-sized businesses l Raising the eligibility threshold for EIS to 499 employees (the same level as for knowledge-intensive companies) and increase the investment limit Ownership and succession: Promoting family ownership and en- suring a smooth transition from one generation to the next, and building new companies for the future by: l Committing to maintain Business Property Relief (BPR) in full l Updating the rules for BPR to support businesses with joint ventures l Bringing Gift Hold-Over Relief eligibility into alignment with BPR to enable a smooth transition in ownership between generations You can download the full Manifesto at familybusinessuk.org and we encourage you to share it with your local MPs and Prospective Parliamentary Candidates (PPCs).
under three areas: People, Growth, and Ownership and succession.
People: Policymakers and businesses must come together to help family firms to get the best out of their people through investing in skills and opportunities for local communities by: l Replacing the Apprenticeship Levy with a Future Skills Fund l Allowing more flexibility on how businesses use the fund for skills l Removing barriers on spending between home nations l Encouraging upskilling and career-long learning Growth: Family firms – backed by a clear government agenda – can help to deliver growth, enabling them to invest for the long term to create sustainable businesses and jobs by: l Developing a Long-term Industrial Strategy, and publishing a Business Tax Roadmap l Making the new Full Expensing rules for capital investment permanent
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Steve Rigby Co-CEO, Rigby Group
Legacy or purpose? I recently attended a virtual round table event for large multi-generational family companies to discuss legacy. Like Rigby Group, the business my father founded and where I am Co-Chief Executive, these companies employ thousands of people around the world and pay substantial amounts of tax. Most had strong ties to a particular town, city, or region, despite sharing a broad global outlook. While Chatham House rules exclude me from passing direct comment, one question stood out from the conversation: Does the world need legacy or purpose? For family businesses, this is a pertinent question to ask. While legacy is defined as the long-lasting effect of events or actions that took place in the past, I see purpose as the reason for which something is done or created. Multi-generational family businesses are unique things, personal, meaningful, confrontational, creative, entrepreneurial, community centric. There are many other words, but at the heart of the business is likely a founder or founders who are striving for a form of legacy. Legacy can take many forms, but in reality, it often revolves around a small number of common points: purpose or vocation, moral code, stewardship, building for the future, and hope. Purpose is often more subjective. In my experience, it is something that is open to possibilities. It has energy and emotion, intention, an ability to hold back negativity, and can push a business – and the people in it – through a period of adversity.
more associated with purpose than legacy. However, my father’s business career is probably more closely aligned to legacy. He started with nothing and is likely to leave behind something highly consequential. For our family, legacy and purpose are both highly relevant. The dual considerations of purpose and legacy are not specific to family business. A ruling government’s purpose is to ensure the welfare and security of its citizens and to provide a framework for the orderly functioning of society. Yet, all too often, government becomes obsessed with legacy. For those of us who care about business and the future of the economy, we need to hold our political elite to account. This is how we define purpose and generate success – and avoid decisions being taken with political legacy in mind. With an election fast approaching, I sincerely hope the new government approaches life differently, with less inward focus and more emphasis on our purpose as a country. That is what we need to drive us forward and help recover some of the years lost to Covid and a period of political instability and infighting.
In politics, as in business: Get the purpose right and the legacy will often look after itself.
We turn 50 next year at Rigby Group and my own journey as a part of one of the UK’s largest family businesses is one
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FBUK Corporate Partners
Family Business UK has established Corporate Partnerships with carefully selected and highly respected organisations providing professional services to family businesses. They are critical allies and supporters of FBUK’s work with family businesses to ensure generations to come inherit a more prosperous, inclusive and sustainable future.
Our current Corporate Partners include:
Boodle Hatfield – a law firm which has partnered with individuals, families, property owners and businesses for 300 years, providing advice on property, business and private wealth issues
NatWest – a leading UK bank and provider of retail and commercial banking, growth capital and advice on equity investment, and support on finding new markets
Clarion Solicitors – a Leeds-based law firm offering family businesses a range of services from finance, dispute resolution, through to data, family and private wealth advice
PwC - the UK arm of the international firm with more than 160 years of experience and 5,000 people serving family businesses with strategic advice on topics including business growth, governance, succession planning and wealth management Redgrave - a leading executive search firm offering search and interim support, board-level recruitment, talent assessment and development, transition planning and advisory Western Pension Solutions - a specialist pensions consultancy owned by the Vestey family, they provide strategic and practical advice to family businesses on how to manage their legacy defined benefit pension schemes Saxton Bampfylde - the UK’s first employee- owned search firm that understands the nuances and importance of ownership regarding talent and leadership, and of the challenges and opportunities when transitioning between generations
Deloitte Private – a firm that brings the breadth and depth of the firm’s services to entrepreneurs, families, businesses and their private shareholders
KPMG – to support the unique needs of family businesses, KPMG Enterprise manages a global network dedicated to offering relevant information and advice to family-owned businesses Farrer & Co – a specialist family business whose lawyers take pride in protecting, supporting and nurturing the clients they represent. Farrer & Co have been working with business families for generations
LGT Vestra - a UK-based wealth management firm that is part of LGT, the world’s largest private bank and asset manager owned by a single family, the Princely House of Liechtenstein, for over 80 years
If you are interested in becoming a Corporate Partner, please get in touch: info@familybusinessuk.org
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Programmes and events
At the start of 2024, Family Business UK launched a new programme of events for Members, and opportunities for peers working in or for family businesses, of all ages and roles, to get involved. This includes a mix of peer-to-peer networking, expert-led discussions, experiential tours, and learning opportunities across the UK. Alongside key events such as our Annual Conference and activities related to Family Business Week, our events fall under four main categories: Masterclasses, Regional Events, Family Business Visits and FBUK Communities.
Masterclasses Building on two successful
Family Business Visits Visits to family businesses provide an opportunity for FBUK Members to meet the owners and leaders of the business, and experience first-hand the facilities and operations, ‘in situ’, and network among peers. Recent visits have been generously hosted by Laithwaites Wines, Bettys and Taylors, Howard Group, Swiss Camplings and Westmorland Family (Tebay servic- es), with more events planned in the second half of 2024 to Bennie Group, Archwood, Thatchers and CT Baker. FBUK Communities It’s important for people in a family business to have a trusted network of peers outside the family and business to share experiences with, seek advice from, and draw support. Central to our work are private, curated com- munities of family business members who share a common interest or role in the family business world. FBUK Communities provide a forum for peer-to-peer networking, sharing of advice and experiences, and access to subject matter experts. Members of each Community decide what topics to discuss, how they interact, the type of events they have, and how often. l Chairs’ Community: Company Chairs experience unique challenges: hiring and managing CEOs, setting remuneration, constructing and managing boards and committees, and overseeing generational change. This Community shares experiences and helps the wider family business community by supporting those recently appointed or designated to take up a Chair role.
l NextGen Community: To give younger family members a safe space to build close connections with fellow future leaders, our NextGen Community meets to hear from inspiring speakers and thought leaders. They stay connected throughout the year through a range of social events and their own social media group. l Non-family Executives Community: This group, comprising senior non-family business leaders, comes together to share the unique experience and perspectives associated with leading a family business from the position of not being a family member themselves. l Non-Executive Director Community: Brings together NEDs of family businesses to connect, learn and share. This group comprises a mix of family and non-family NEDs, and provides a forum for rich discussion about the nuances of helping to steward the business through intergenerational change. l Policy Community: For those keen to help shape our work with politicians, policymakers and regulators, this group consults on key policy areas and issues to ensure the needs and views of family businesses are represented amongst those setting the regulatory landscape. I n the second half of 2024, new FBUK Communities are being planned to support NowGen, Advisors and a Family Council Community, as well as a Community that brings together FBUK Members interested in exploring the
Masterclass pilots in 2023, this year FBUK is offering a programme of four Masterclasses to cover key aspects of family businesses: Ownership, Non- Executive Directors (NEDs), Succession and Governence. These one-day intensive, interactive programmes provide access to experts from FBUK’s Corporate Partners as well as prominent owners and leaders of
family businesses themselves. To date, these have included:
l Bettys & Taylors of Harrogate l Bibby Line Group l Bradford and Sons Ltd l Brewers l The Clancy Group l CJ Lang l Day Lewis l Dormole Ltd l JW Lees l Laithwaites Wines l NG Bailey l Sigma Pharmaceuticals l Wates Group l William Jackson Food Group Regional events These events are held around the UK and offer insights into live issues facing family businesses. Hosted by, and run in conjunction with FBUK’s Corporate Partners, these events take a number of forms, including panel sessions, dinners, roundtable discussions, and workshops. In recent regional events, participants have heard from prominent family businesses and experts on topics including legacy, innovation, the role of values in a family business, strategic philanthropy, and responsible business.
role of social and environmental purpose in family businesses.
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Family Business Week Family Business Week, an annual week-long celebration of family businesses as a force for good, continues to grow in size and awareness. At the last Family Business Week we celebrated “Future Leaders” – shining a spotlight on the innovative and pioneering family business leaders that are shaping the future of family business for the next generation. As part of the week, around one hundred family business leaders, policy makers and advisers gathered in Parliament to celebrate the family business community, and heard from Business Minister Kevin Hollinrake MP. The Family Business Week Summit also brought together the community to hear how others are helping to develop the next generation of family and non-family leaders, and what policymakers can do to ensure the conditions exist for family firms to thrive. Family Business Week in 2023 was generously supported once again by NatWest. Ones to Watch During Family Business Week we launched the first “Ones to Watch” list, which recognised and championed the work of the next generation of family business leaders. Ones to Watch showcased individuals who were recognised as leading the way in areas such as product innovation, sustainability and ESG, social impact, diversity and inclusion, circular economy, good governance, or other aspects of being a leading sustainable and responsible business.
Holly Thallon Steenson NextGen Co-Owner, Viridian Nutrition
Matthew Ayres Group Managing Director, Bennie Group
Emily Palmer Ramus Chief Executive, Palmers Brewery
Chris Whittaker Director, Platts Group
Eleanor Thatcher Cider Maker, Thatchers
Adam Walsh Chief Executive Officer, John Good Group
In 2024 we will be celebrating Family Business Week from the 25-29 November. With activities across the UK and online, we will be promoting the vital role family firms play in supporting the economic, business and social wellbeing of the places in which they operate. Find out more at familybusinessweek.co.uk
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Westminster spotlight
Ahead of the upcoming general election, representatives of the two main political parties share their perspectives the importance of family businesses to the UK economy, and their plans to support future growth and investment in the sector. Please note: these contributions were requested and written before the announcement of a General Election.
Kevin Hollinrake MP , Minister of State for Enterprise, Markets and Small Business
Rushanara Ali MP , Shadow Minister for Investment and Small Business
In the UK, 4.8 million businesses are family run businesses. Whether it be manufacturing, hospitality or retail, there are trusted and valued family business owners in all of our celebrated UK industries. Our local communities depend on the contributions these businesses make and as the Minister for Small Business I am passionate about supporting the ambitions of these inspiring entrepreneurial families. We’re making sure that the concerns of family run businesses are being heard through the new Small Business Council, giving them a voice in the heart of government. The needs and skills of SMEs are often quite different to bigger businesses, and within this group family businesses offer unique perspectives. Family Business UK sit on this Council and do an incredible job representing family businesses from across the UK. The momentum this group is already building is impressive and together we’re working to strengthen what government can do. Access to finance is a key issue, and the council is working with government to explore the future of Open Finance and how it can make lending to SMEs even more competitive, opening up crucial avenues of financing. We’re exploring ways that our regional network of International Trade Advisors can better support businesses to export their world class goods and services to new markets. And we’ve launched the Help to Grow website, a one stop shop for every source of support across government, making finding the help you need easier than ever before. Working together with passionate advocates like Family Business UK, I am confident that we can make the UK the best place in the world for a family business to thrive.
Family businesses are a vital part of the UK economy. They employ close to 14 million people, contribute over a quarter of the Government’s tax receipts, and add over half a trillion to GDP. But statistics can only go so far in showing family businesses’ importance to local communities and our day-to-day lives. From producing our food and building and repairing our houses to managing our finances, family businesses are integral to our way of life. But too often they do not receive the recognition they deserve. Labour is the Party of business, committed to supporting businesses of all sizes. Family businesses will play a vital role in our national missions, including revitalising the high street, getting Britain building again and achieving the fastest sustained growth in the G7. Labour is under no illusions about the economic situation we would inherit were we to be elected to govern. We understand businesses have been hit hard by the pandemic, spiralling energy costs, chaos at the top of government, out-of-control inflation, and a stagnant economy. That is why we have developed a credible plan for small business, ensuring they are hardwired into everything we do. We have pledged to reform business rates and the apprenticeship levy, legislate to tackle the scourge of late payments and ensure businesses have the access to finance they need to scale-up successfully. It is clear from my regular conversations with businesses of all sizes, there is a desperate need for consistency, clarity and a clear vision for the economy.
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Prepare your business with Payne Hicks Beach The General Election : Essential preparation for family businesses
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As a law firm specialising in family businesses, we work closely with our clients to navigate national and global events that can affect businesses. With a UK general election approaching, family businesses are likely to experience a period of uncertainty as political parties announce their policy agendas. ' How should we prepare for the election ?' is a question often asked, and we consider some key areas that are likely to affect family businesses below. "
Howard Taylor Partner
htaylor @ phb.co.uk
Policies that could affect your business
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For businesses that occupy non-domestic property, business rates can represent a significant cost. Labour plans to replace business rates with an entirely new system, while the Conservatives intend to reduce business rates following a “ fundamental review ” of the existing system. Business rates
Capital gains tax (CGT) A CGT liability for business owners can arise when a business is sold. While Labour has ruled out increasing the rate of CGT, it could make changes to the exemptions and reliefs that apply to it, including Business Asset Disposal Relief.
The Spring Budget included proposals for a new residence-based scheme for IHT. The Government has said these changes, especially important for family business owners considering succession planning, will, subject to consultation, take effect no earlier than 6 April 2025. Inheritance tax ( IHT )
Prepare now, and ask yourself :
Is the business’ financial health robust enough to deal with election uncertainty? Would now be a good time to sell the business or seek an injection of capital? Do the shareholders have a common long-term goal, or would now be a good time for some or all of them to exit the business? Does your succession plan need revisiting? Now is a good time to consider whether it remains suitable in light of potential changes to the tax system. Is your business planning a major transaction or change, such as a sale or the transfer of control to a younger family member? Should it be implemented prior to any changes to the tax system?
PAYNE HICKS BEACH
Visit www.phb.co.uk for more information. Contact Howard Taylor (htaylor@phb.co.uk) for assistance
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Time for a new chapter at Hilliers Nurseries The chairman of Hillier Nurseries, Robert Hillier, has stood down from the role after more than 50 years in the business, and having been the driving force since 1980. It is his passion and dedication that has led Hillier to where it is today, from the introduction and growth of the retail chain of garden centres, to the expansion of the Hillier Trees division, winning significant tenders for projects such as The Queen Elizabeth Olympic Park. FBUK Members in the news
George Hillier has taken over as Chairman of the family-run business while Robert remains at the company on a part-time basis as a board director.
“It has been a privilege to be at the forefront of this company for so long. I am extremely proud to be handing over to the next generation of the Hillier family,” says Robert Hillier. “We are a business that has always looked to the future, so it is wonderful to see George take the reins and continue to build on the fantastic achievements of the last 160 years.” George has worked in the company for 23 years, most recently managing the company’s property acquisitions and developments, expanding Hillier’s portfolio from 12 to 22 garden centres, as well acquiring additional land for growth in the Hillier tree nurseries. George Hillier comments: “I’m looking forward to the opportunities ahead of us. These are exciting times for Hillier following our recent acquisitions and our launch of online shopping”. “The world is experiencing some uncertain times right now, but we have a strong and experienced team at Hillier who support our values and our vision and care about our customers, so we’re in a great position to look at what’s next for our business and continue the growth that my predecessors championed for decades.” Hillier will celebrate its 160th anniversary next year, and during that time, remarkably, there have only been four Chairmen. Transitions like this are always a significant milestone in any company’s history and good luck to George, Robert and all the team at Hilliers, for this exciting next chapter. Shorefield Holidays double at the 2024 British HR Awards FBUK Members Shorefield Holidays, based in Dorset, were recently recognised as double winners at the prestigious British HR Awards 2024. Their hardworking team having been awarded as both Hospitality & Leisure Company of the Year 2024 and were honoured to have won the Employee Wellness Initiative of the Year 2024. Congratulations to all the family and team at Shorefield, and we hope you celebrated accordingly!
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St Austell Brewery has signed a new 10-year deal with fellow West country drinks brand, Thatcher’s Cider As part of the new, long-term strategic deal, St Austell will stock Thatchers cider in their managed pubs, from the Isles of Scilly to Bath. Thatchers will also continue to be a key drinks partner for publicans across the 122-strong leased and tenanted St Austell estate. St Austell have been working with Thatchers in close partnership since 2002. As the South West’s leading wholesale drinks distributor, Thatchers brands are also widely available to 3,000+ free trade customers across the region. Kevin Georgel, CEO of St Austell Brewery said: “We are delighted be continuing our longstanding partnership with Thatchers by signing this new 10-year deal. It’s a fellow family-owned drinks company, which shares many of our values. “Working collaboratively with other businesses in our region, and building strong long-term relationships, is something which has always been important to us. It’s fantastic to continue supporting one another by growing Thatchers’ Westcountry distribution whilst bolstering our drinks portfolio and cider offer for pub guests and wholesale customers.” Martin Thatcher, fourth generation cider maker, said: “Working in partnership with St Austell Brewery just makes sense; we share our values, roots, and commitment to giving customers a great experience”. “This 10-year deal, which may seem short in comparison to the combined 292 years of family expertise our companies have, is a testament to our shared commitment to collaboration and sustainability. We look forward to raising a glass in a St Austell pub to celebrate!”
Thatcher’s cider has been made on Myrtle Farm in Somerset since 1904.
A family business just like St Austell Brewery, Thatcher’s are on their fourth generation dedicated to its craft, and with the 5th gen, including daughter, and proud Cider Maker Eleanor Thatcher, a recent recipient of an inaugural, 2023 FBUK Family Business Week “One to Watch”.
If you would like to share your news, insights, and updates from your family business, please contact the FBUK team: info@familybusinessuk.org
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1698 – A tale of two halves
Last year, two of the biggest names in the UK family business community – both in the drinks industry – celebrated their 325th birthdays. In this two-part series, we profile the parallel stories of Berry Bros & Rudd, and Shepherd Neame through the eyes of Lizzy Rudd and Jonathan Neame, each responsible for stewarding their firms and ensuring their family businesses remain leaders in their industry for generations to come.
Company year of founding: 1698 Location: London Turnover: £250m Number of staff: 400 Generation of business: 10th
Spirits shop Credit: Joakim Blockstrom
Who started your business, and why? All we can find from the records is that it was started by a “Widow Bourne”, who established a shop at No 3 in St James’s Street in 1698. At the time, a lot of businesses were cropping up in this part of town to provide produce and services for the aristocracy. So, our business was started by a woman, and now we are majority led by women, which surprises a lot of people, because St James’s is perceived as a traditional area. What’s been the biggest threat or challenge to your business over the centuries? Our biggest challenge always has been to keep changing with the times. In the early days we predominantly sold coffee, which was very luxurious at the time. More recently, in the 20th Century, we were predominantly a whisky business. We’ve continued to evolve and are now the oldest fine wine and spirits business in the UK. We’re always innovating. We’ve had to deal with some big changes brought on by world wars and deaths of shareholders. My grandfather joined in 1920, but after the two other business partners – and their sons – died in World War Two, my grandfather was left propping up the business. It was a time of complete turmoil. What changes in consumer behaviour and attitudes are you observing in your industry? How is this affecting how you run the business? We’re seeing lots of changes, depending on where you are in the world. In Europe we’re seeing young people becoming more considered about how they consume wine and spirits. In Asia, there is an increasing appetite for fine wine and collecting. We are responding by focusing more on expanding our premium wines and spirits. Then of course there are greater expectations about sustainability. It’s already important to us, but the consumer of the future is going to require that. We’re currently looking at the B Corp framework which is very
helpful. We have a very clear carbon reduction road map, with targets across our supply chain, and keeping an eye on the technology that’s coming. Sustainability also involves sharing best practice with producers. How do you balance preserving tradition and heritage with the need to innovate and remain competitive? As a family member it’s easy to feel weighed down by history, but that same history gives us the foundation to innovate. The biggest part of our business is selling to people who want to build collections, so we’ve developed a service where they can buy and store with us. Plus, we’ve developed an online fine wine exchange BBX – a market- place for wine collectors. People expect to have the choice of buying everything online. At the same time, they want a very personal experience. Not just buying wine but having an in-person, face-to-face experience. How do you think your next generation will change the business? They’ll have to change even faster than we are now. They may diversify. We’re focusing now on our core fine wine and spirits business, but future generations may diversify into no- and low-alcohol products. I’m sure they’ll build upon the brand experience, and I hope that they’ll have fun while they’re doing it!
Lizzy Rudd Berry Bros & Rudd
Credit: Elena Heatherwick
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1698 – A tale of two halves
Company year of founding: 1698 Location: Kent Turnover: £167 million Number of staff: 1,700 Generation of business: 13th
Who started your business, and why? It’s a long story! The origins of the business date back to the time of King Stephen in 1147. An Abbey was built in Faversham, and the community brewery was moved to our site, which is a natural source of spring water. The brewery was run as a community collective operation until 1698, when the mayor of the town bought it to run as a family business. What’s been the biggest threat to your business over the centuries? Death and taxes! Death because two critical people died at very challenging times – my great-great grandfather died literally on the eve of the first world war, which sent the company into a bit of a tailspin. And then my grandfather died in 1961 at the time of a very punitive tax regime, which led to consolidation of the business during the 1960s. And taxes because our sector – alcohol and hospitality – have generally been overtaxed over the years. What changes in consumer behaviour are you observ- ing in your industry? How is this affecting how you run the business? Consumer behaviour is changing all the time, and we’ve had to continually adapt. In the 33 years I’ve been in the business we’ve moved from a typical pub being male-dominated and smoky, with not much food, to a premium environment with great accommodation and great food. The longer-term picture is that people are drinking less alcohol now but demand higher quality. Brand trends are driven essentially by authenticity – they want to know the back-story to the brand – and family-run businesses like ours can do well in that environment. How do you balance preserving tradition and heritage with the need to innovate and remain competitive? We’re extremely proud of our heritage and some of the amazing pubs we’ve run for centuries – about 200 of which
are listed buildings. We’re using the same source of water, still buying 80% of our hops locally, in the same physical location for hundreds of years. We want the heritage to speak for itself. People often ask me why Shepherd Neame has survived when so many other brewers have failed. We’re certain- ly not bigger, we’ve got great assets but not necessarily better than others, and many other brewers have quality beers. I can only suggest that somewhere within these four walls there is a mentality of strong independence. The community remains at the heart of the business. The core DNA of Shepherd Neame is the people of the Faversham brewery, and there is a collective responsibility for making the business succeed. It’s not just top-down leadership, but a collective die-hard mentality that will think for the long-term and see you through challenges in the short-term. How do you think your next generation will change the business? They will have to keep adapting to whatever the consumers demand, and the pace of that change will be increasingly rapid. The next generation needs to stay in the coal face, communicating with people, and understanding the zeitgeist and how it’s changing. Then modernising furiously to keep the business going. I have great confidence that the next generation will have those capabilities for change.
Jonathan Neame Shepherd Neame
‘1698 –A tale of two halves’ will conclude in the December 2024 edition of the FBUK magazine.
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FBUK Members Resources Centre
One of the many benefits of being an FBUK Member is access to the Members Resources Centre. Housed within the FBUK website, once logged-in Members can access a range of tools to help navigate the opportunities and challenges associated with multi-generational change and succession in family businesses. These include: Members directory - where Members can find information on other family businesses in a particular region, industry sector, size or age. Online noticeboard - where you can get help and input from fellow FBUK members. Whether it’s asking for views on how others handled an issue, or advertising for a new Non-Exec, here you can post requests search for help, or provide offers of assistance. Lifestages model - an interactive tool which allows you to search for information, resources, and support based on the particular Lifestage of your family business.
At each stage, you will find a short introduction to the stage, some of the key questions family businesses often ask at that point on their journey, as well as a range of related resources. There are also details and links to specialist family business advisors and FBUK Corporate Partners for you to contact if you need more help or support. Resource library - a directory of reports, user guides, toolkits, blogs and videos on a range of topics relating to family business governance, succession and family dynamics, as well as technical support on issues ranging from tax and regulation, through to employment law and ESG. Upcoming events – listings of the various programmes, events and forums on offer from FBUK including Masterclasses, Family Business Visits, and all the activities of our various FBUK Communities. To register, go to www.familybusinessuk.org/register/
Lifestages of a family business
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Company year of founding: 1994 Location: Cumbria Turnover: £22 million Number of staff : 200 (20 in Australia) Generation of business: 1st
A relay, not a marathon Approximately 270 metres around the track, Andrew is holding onto the family business baton firmly. This is not a 400 metre race. He is running a relay race, and this is just the first lap. That’s the metaphor Andrew Moses, Managing Director of The Config Team, chooses to use to describe his family business journey. As co-founder, along with his wife Carolyn, he is clear that this is not just another IT firm that will sell out to big tech or private equity. He plans to hand the baton over to a new generation. For an IT firm, that’s unusual… and a competitive advantage. “Customers like dealing with a family business”, Andrew explains. “Usually, once an IT firm gets to 50 or 100 people, they look to sell. But when that happens, the culture changes. Customer relationships suffer.” For customers, implementing IT systems is stressful enough. “We want to minimise the stress as much as possible, so we focus on the relationships.” The family business mentality, with its focus on the long term and a very employee-centric culture, suits The Config Team well. “Our culture is one of teamwork. We have high expectations of each other, but we lean in and help each other out.” While Andrew admits that some colleagues have left The Config Team because they felt the business was growing too big, he maintains that the size actually helps to preserve the culture. The size helps to manage risks, and “as we grow, we can hire people not just for their technical skills, but for how they will fit in.” The benefits of family ownership came to light during the pandemic. Unlike most in the industry, as customer projects were put on hold, The Config Team didn’t put staff
on furlough, but instead put them to work on internal development projects to help future-proof the organisation. The business took a hit financially, but it preserved client and, arguably more importantly, employee loyalty. Andrew has some advice for other founders considering their legacy: l Build relationships for the long-term. The family business model may not be right for everyone, and even if it is not, you still benefit from setting up a stable business. “Having a strong leadership team means the business is less dependent on me as a founder, so that will protect our DNA.” l Don’t give up equity in your business too quickly. While Andrew has seen the temptations of selling, he is glad he and his wife have been able to hold on to 100% ownership. His eldest son Tom, 24 years old, has recently come into the business, perhaps a bit sooner than Andrew and Carolyn had expected. After completing a degree apprenticeship and working for PWC for two years, Tom caught wind of “all the excitement going on” and asked to come into the business. Andrew and Carolyn have two other sons who may or may not join the business…. There’s no pressure on them to join but Andrew hopes that by the end of the first lap he’ll have created something special that his sons will want to be a part of.
Andrew Moses The Config Team
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