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.

Formerly JDC and Coast Business Computers

P. 4365 3199 Unit 1, 188 The Entrance Rd, Erina e.o ce@digitalbm.com.au www.digitalbm.com.au Partner Company of

MANAGEDIT SERVICES

Managing the Coast’s IT Services for over 20 years.

Friendly, reliable, experienced sta with Senior engineers over 20yrs experience, Technical management over 40yrs experience. Small, medium and large businesses. All aspects of your business IT needs, both hardware & software. FREE audit to see if what you’re using is right for your needs.

Bamboo products Koala was the first company to bring the bamboo pillow to Australia. “Bamboo is the wonder fabric of 21st century,” says Machin. “Health benefits include antibacterial, dust mite resistant, soft luxurious feel, moisture wicking, thermo regulating, biodegradable.

“We were connected via our freight forwarding agent who was importing bamboo pillows on behalf of a client and we bought the company out and now trade under the Bamboo Haus brand, says Mr Machin.

IT and Technology: Koala has digitised /automated their entire business systems – from field staff placing orders right through to delivery of order to retailers. Additionally, internal innovation has lead to an internally developed transparent sales and reporting system that is accessed by retailers, field staff, and internal staff.

Covid One of Koala’s more recent challenges has been the COVID pandemic. “We met as a team very early on to trouble shoot potential challenges we may encounter,” he says. “It was the team’s idea and decision to work 4 days a week for 6 months to protect the business and all involved.”

All office staff choose when they want to work from home, and come into the office the days that best work for them

ESG Koala have put ESG front and centre of their operations. works with ethical supply chains. “While we do currently produce our Bamboo Haus products in China, it is our ambition and preference to produce in Australia, and this is something I will be pushing for this year. My long term vision to grow bamboo in Australia and have a fully integrated vertical supply chain,” he says.

International expansion plans Koala’s Plan is to have their Bamboo Haus products selling in international markets within the next 6-12 months with their goal being to double total business income within the next three years

The Koala Group Team (l to r) Danielle Wilby – Marketing and Communications Manager, Peter Miller – Systems and Operations Manager, Reuben Machin – Managing Director, Laine Spencer – Distributor Manager

Environment Following the installation of 130 solar panels on the roof of their Fountaindale warehouse Koala’s monthly power bill went from $1800 - $200.

Social – Koala’s Send A Card To Santa programme supports Bravehearts charity, and gives $2 per card sold to this charity. Our goal for 2021 Christmas was to donate $80,000 to this amazing charity. Additionally, the company also donates to homelessness charities.

Governance Mr Machin says that the company only