Australian family businesses have shared their key to success

The business world can be a tough place for family owned-companies – but these Aussie empires have proudly stood the test of time for multiple generations. Here are their secrets to success.

There is an old saying in the business world that “the first generation makes it, the second generation spends it, and the third generation blows it”.

While many companies have fallen victim to the three-generation curse, a number of Australian businesses have managed to stand the test of time.

These are the families behind some of the biggest Aussie businesses – and the secrets to their success.

COOPERS BREWERY

Fifth generation family member Melanie Cooper is the first female Chair of the company in its 161-year history. Picture: Coopers Brewery

As the story goes, Thomas Cooper only intended to create a tonic for his sick wife when he brewed his first batch of beer in 1862. However, demand quickly poured in from family and friends across the fledgling colony of South Australia.

One hundred and sixty one years later, Coopers Brewery is a sixth-generation family company and Australia’s largest independent brewery.

Fifth-generation family member and the first female chair of the company, Melanie Cooper, revealed what it takes to keep the Adelaide-based business alive.

“Over our 161-year history there have been many challenges, not the least being the unsuccessful takeover attempt by Lion Nathan back in 2005,” Ms Cooper said.

“Any family member seeking to join the brewery must first prove themselves outside the

business before being considered,” she added.

“Our brewery has succeeded through the generations because each family member embraces this expectation in the knowledge they are fortunate to be part of something truly special.”

LUCAS’S PAWPAW

Three generations of the Talbot and Swinglehurst family, who are the direct descendants of Dr Lucas, the inventor of the iconic red Lucas' Pawpaw Ointment. Picture: Lucas Pawpaw

More than 110 years later, Lucas Pawpaw Ointment is a household staple thanks to the work of his descendants, including current manager and sixth generation family member Jake Swinglehurst.

“My great, great, great grandfather Dr Lucas invented Lucas’ Pawpaw Ointment in the late 1800s and, since then, six generations of our family have had the privilege and responsibility of caring for his life’s work,” Mr Swinglehurst said.

“As the first product of its kind, the business has been kept mostly under the radar for almost six generations.

“We have been approached by numerous investors eager to join us on our journey but believe in the magic of entrusting the generations after us to continue the brand within the family.”

SAXBYS SOFT DRINKS

Founder George Saxby. Picture: Supplied

Saxby’s original ‘Stone Ginger Beer’. Picture: Supplied

More than a century after 27-year-old George Saxby sold his first ‘Stone Ginger Beer’ from the banks of the Manning River in 1864, Saxby’s is still local and proud.

The family-owned business is now in the hands of fifth generation managing director Ian Turner, who still manufactures their products near Taree in NSW with original family recipes.

Despite a lucrative franchise offer from Coca Cola and plenty of challenges over the years, the Saxby family has never wavered from their great-great grandfather’s dream to provide “local drinks for local people”.

“(The company has remained family owned) by firstly putting employees and community first. Secondly, by saying no to the Coca Cola franchise in the early 1960s. Thirdly, by taking an active role in industry associations and, most importantly, fighting hard in the marketplace,” Mr Turner said.

“When Asahi took over the Schweppes business in Australia, their strategic direction changed and terminated a 43-year partnership with our business. Once again offering nothing in goodwill for a brand we grew from scratch and invested millions in over the years.

“(So) don’t be afraid to take the big guys head on … they don’t deserve to be seen as the only game in town.”

GATEFORTH FARM

Fiona, Ruby and Phil Medwin are the sixth and seventh generation to farm Gateforth in northwestern Tasmania. Picture: Gateforth Farm

While the current generations don’t have to deal with bushrangers like their ancestors William and Elizabeth Medwin, new eras bring different challenges.

Sixth generation farmer Phil Medwin has evolved Gateforth from beef and vegetables to peonies, and said his forefathers would “be very proud that we are still here and probably surprised we are forging a living from flowers”.

“I initially moved away working as a diesel mechanic in Western Australia to get off-farm experience. When I returned home, my dad had done it a lot harder than we do it now and I wasn’t interested in doing the same thing, so we went more niche,” he said.

Mr Medwin is unsure what the future holds but hopes to keep the business going with his wife Fiona and daughter Ruby until 2041, which will mark 200 years since the farm was first settled with a 500-acre land grant at Black River in 1841.

J FURPHY & SONS AND FURPHY INFRASTRUCTURE GROUP

Adam (left) and Sam Furphy are fifth generation cousins at the helm of the Furphy empire. Picture: David Caird

Managing director of Furphy Infrastructure Group Sam Furphy, who jointly runs the business with his cousin Adam Furphy, the Managing Director of J Furphy & Sons, said the family-owned business has succeeded by continually innovating from wheels to water carts, and silos to solar-powered structures.

“(It comes down to) changing with the times and anticipating what is coming over the horizon, and being able to adapt and position ourselves to take advantage of the changing landscape,” he said.

“The next generation is coming behind me and our philosophy is if they want to come into the business we’ll take them with open arms … but there’s no hard and fast obligation to join the family business.”