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COV ER S TORY
Visionary founder ensured Koala Group’s future FOUNDED IN 1990 by the late Tony Grieve Koala Publishing Pty Ltd at Fountaindale is a company that has survived thirty years of ups and downs due to his vision for its future and the culture he put in place from day one. A long time resident of the Central Coast and well known property developer and entrepreneur he had started other businesses, all successful, before buying a small Sydney poster printing and distributing business and relocating it to Lisarow, before moving to a larger warehouse in Fountaindale in 2005. The business evolved into Koala Publishing when Grieve saw an opportunity to move into greeting card production by out performing the ‘cheap’ imported card producers. Firstly though, his vision for the business was that it would not only “energise the greeting card industry” by delivering what customers want, but its future would be based on a workplace culture that shows employees they are highly valued, no matter what function they perform. Tony Grieve died in June 2015 after an illness that saw him leave the business in the hands of now Managing Director, Reuben Machin who had jointed the company in 2003 as General Manager. Just a few months later Koala Publishing would take out the prestigious Business of the Year and Employer of Choice Awards at the 2015 CCBR Central Coast Business Excellence Awards, with Bev Grieve, who retains a controlling interest in the
company and Reuben Machin accepting the Award. Koala’s success was predicated on offering a quality greeting card, printed in Australia price point of $1 to $4 per card. How did Grieve work out a way to produce a ‘high-end quality’ greeting card that retails for a fraction of the cost while utilising Australian products and services, including local printing? Firstly, Koala delivers high volume sales through a quality product and rapid turnover of custom designed stock on the shelves. Secondly, Tony Grieve established a business-to-business national distribution network that was unique in the industry. Today there are 20 distributors in Australia and four in New Zealand. Each distributor operates as a separate business entity under the Koala banner, however they are not franchisees. Distributor territories vary in size and each distributor is provided all the tools, resources and training they need to be successful at no cost to them. “Everything we do is in support of these distributors because if they don’t do well, we don’t do well,” said Reuben Machin. And last but not least, is the company’s commitment to avoid “putting profits before people”, a mantra introduced from the very beginning by Tony Grieve. Another factor in Koala’s success is in their distribution and the long-term relationship they have had with national groups such as Spotlight and Smokemart and Gift Box stores for some twenty years.
However, right from the start Tony Grieve laid down that not one retailer would dominate their business, so today Koala supplies over 3,000 retailers across Australia and New Zealand with no one customers representing more than 7% of annual turnover. Another enduring aspect of Koala’s success is their commitment to staff. It is this philosophy that earned them the Employer of Choice Award at the 2015 Business Excellence Awards mentioned earlier. Fifty per cent of staff have been with the company at least 10 years and many 15+ years. Strategy reset With a changing marketplace and new technologies influencing consumer attitudes the company five years ago undertook a review of its operations to take them into the future. However, Reuben Machin points out that Koala’s values didn’t change. “We still have very strong family values and a focus on work-family balance. Something Tony established early on in the business,” he says. Mr Machin said with one question we asked was: Why do we exist? The answer to which is to celebrate and enhance people lives. Cards The Reset has seen a product diversification with $1 to $4 cards being best value for money and the introduction of a “Send a Card to Santa” programme with the concept being to encourage kids to write cards.
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CENTRAL COAST BUSINESS REVIEW MARCH 2022
