by Real Business - Thursday, 30th August 2007

Of all the successful family businesses on our list, fi ne wines retailer Berry Bros & Rudd is perhaps the most illustrious. The fi rm has weathered 309 years in business and has passed through the hands of eight generations of Berrys and Rudds, all from its original premises opposite St James’s Palace.

This leopard has had to change its spots a few times to survive. Each successive generation has tweaked and tinkered. Chairman Simon Berry (pictured) believes that’s been the secret to the fi rm’s success:

“People presume that we haven’t changed since 1698. They don’t realise that when we started out, we were selling the most valuable commodities of the day, tea and coffee. Today, £100m of our £205.8m turnover comes from whisky sales. We’re not afraid of diversifi cation.” Berry himself has been an agent of change. In 1995, he opened the Berry Bros & Rudd outlet in Heathrow, a huge step towards international expansion. That same year, he created the website and online shop: “Everyone thought I was mad. It wasn’t what an oldfashioned wine merchant should be doing. But I wanted to steer the company into modern times.” The website is a revelation, it’s the place to read about how the son took over his father’s vineyard and brought new wine-making techniques. Now, 12-15 per cent of sales come through the website.

It’s not just the sales channels that have seen a revamp. There’s been a reshuffl e in the company itself with the introduction of outside management. Hugh Sturges, the MD, deals with the business day-to-day. The family provides continuity and culture, but Berry gives the egoists short shrift:

“We don’t have a God-given right to run this business,” says Berry, “We’ve had outside management for the past 12 years.

“It’s been important to get a new perspective, and have a competent businessman running the company.” There’s no room for sentimentality at the fi rm. “If the family business becomes the place where the unemployable members of the family can get a job, it is the kiss of death. The talented members leave.” All new family applicants must have a university degree and have at least two years’ experience in a job outside the trade before they can join the business.

Even then, their progression through the company isn’t assured.

“Was it written in stone that I would become chairman?” says Berry, “No. I had to prove myself.” This hasn’t deterred family applicants in the least. There are 20 Berrys and Rudds working in the company, and six on the board. Berry’s step-children have yet to show an interest in the company, but there are plenty of candidates vying for succession.

Berry was not so keen to join the firm. “When I was 19, I resented the expectation that I would go into the family business. I wanted to be an actor or a film-maker.” Having dug his heels in initially, he’s now a convert. “I’m a passionate believer in family businesses. You can think about the long term, you’re not focused on making a quick buck.”

So outside investment is out of the question? “I don’t want to be at the mercy of investors. They bring a culture of greed.”

The company now lies in the hands of around 50 family members. Berry is enjoying being chairman, and admits a reluctance to consider retirement. Like father like son. Berry senior only retired from his non-exec position last year at 92. Berry sounds half amused, half exasperated: “And he still thinks he’s been fired!”

Simon Berry names his poison: “I’m a real claret lover. If you want a real treat, try the Château Lynch- Bages. The 1990 vintage is drinking particularly well now”

Tags: simon berry, wine merchant, family business, sales channels, international expansion, berry bros,