Putting family-owned business front and centre in foodservice distribution
/Over the past few years, the impact of Covid lockdowns, followed by natural disasters such as the recent floods in northern NSW have underscored the importance of a robust supply chain to the foodservice sector. Independent distributors have long been a key component of the industry’s lifeblood, and this year Countrywide – Australia’s largest group of independently owned distributors – is celebrating its 30th anniversary. To mark the occasion, we interviewed Countrywide CEO Jeff Dhu and Sebastian Galipo of Galipo Foods to get their thoughts about the importance or putting family-owned businesses front and centre of foodservice distribution.
“Countrywide kicked off in 1995 and the foundation of the business is quite a story,” Jeff tells us. “Our founding Members Doug Hamilton, Neville Stedman and Kevin Rose and our inaugural chair Tino Arquilla had a bold vision which was very different from what most foodservice distribution in Australia was doing at the time. Their ambition was for Countrywide to become the most committed and cohesive buying, marketing and distributing foodservice company in the nation. They could see a bigger picture, taking on a US model whereby our suppliers would be able to achieve national distribution.”
CountrywidE CEO JEFF DHU
“Our founding members had a bold vision which was very different from what most foodservice distribution in Australia was doing at the time”
Three decades later, many of the inaugural Countrywide Members are still with the group – some of their businesses now operated by the third generation of family members. “The goal from the outset was to provide the greatest degree of advantage to the Members of our group and we can proudly say we’ve never wavered from that. Over the years we’ve seen our Members’ business grow thanks to great partnerships and we’ve collectively navigated a whole range of challenges from the global financial crisis to Covid and beyond. It’s a story of strength in numbers as throughout those periods the group was able to help its Members and the broader industry come through.”
Jeff explains that at the time of Countrywide’s birth there were many state buying groups but no national structure. “There was a lot of negotiation and eventually a framework was agreed upon by which Countrywide was restructured from a cooperative to a non listed public company.” At the group’s inaugural national conference on Queensland’s Sunshine Coast in 1995, a giant hot air balloon bearing the new Countrywide logo and the slogan ‘The future starts now!’ exemplified the founding Members’ aspirations.
Proud Countrywide delegates at “The Future Starts Now” conference in Maroochydore QLD, September 1995
Evolution shows no signs of slowing
Countrywide’s ability to negotiate on behalf of its Members brought them access to a far broader product range than they had previously as independents, while allowing them also to maintain their own operations and management. It was the start of a period of remarkable evolution for Australia’s foodservice distribution network which shows no signs of slowing.
“Technology in particular has gone ahead in leaps and bounds over the past couple of years,” Jeff acknowledges. “The way we consume and purchase products has changed and the distribution business has had to evolve to reflect that. Face to face used to be the primary model, now online purchasing has moved from basic internet models to sophisticated e-commerce. A large number of our Members are heavily invested in that due to the demands from their end-users.
“We know that foodservice professionals are increasingly under time pressures”
“We know that foodservice professionals are increasingly under time pressures, hence the focus on providing e-commerce tools that make the ordering process faster – such as being able to see what they ordered last time, and suggestive selling such as offering recommendations for complementary products during the ordering process. We’re working through the potential of those opportunities, because their uptake is simply reflective of what’s happening in society today.
“We’re currently working with a US-based organisation called Pepper who are highly proficient in the e-commerce space – we have an exclusive arrangement with them for our Members in Australia, which is making huge inroads and paying dividends to their businesses. We’re continuing to expand that offer by adding greater functionality and benefit – tapping into the collective knowledge of our Members as well as the expertise of Pepper’s team who are able to draw on their global resource as well as their experience of what has worked well in the US.”
Three-generations: WA Countrywide Member Superstock Food Services, three generations: Brent, Aaron and Cooper Griffith
Jeff emphasises that despite the growth of digital media and the online environment, foodservice at its core remains a business driven by real world relationships. “We’re continually focused upon that in the current environment – how do our Members stay close to their end-users, how do they offer a point of difference?
“We are a family-based organisation – our network is made up almost entirely of family-run businesses and our job is to support them in making sure they have all the tools, skills and capabilities to compete against the corporates who are in this space. Broadly speaking, systems, technology, data sophistication and speed to market are going to be the ticket to the game over the next few years – the world is on the move and consumer expectations are changing rapidly as well. We never used to order using our phones, now that’s part of society, and people tend to want everything delivered yesterday! So we need to continually upskill our Members – and they themselves are adept at investing in their businesses to stay on top of these trends. The more we do that, the more successful we’ll all be.”
Jeff adds that the focus for foodservice distribution is about more than just selling – “the service part of foodservice is key. As I said earlier, it’s about relationships – making human connections. Our Members are dedicated to this, they go the extra mile for their customer, they solve their problems and fulfil their needs.”
Championing our food and beverage industry
During the Covid pandemic, Countrywide joined with Australia’s other two independent foodservice distribution groups to create IFDA – Independent Food Distributors Australia. “That was really about championing Australia’s food and beverage industry and getting it front and centre of our political decision makers,” Jeff says. “Prior to IFDA I think there was a lack of knowledge about what the foodservice market actually was and how the distribution system worked. IFDA has played a vital role in helping the voice of the industry to be heard, particularly in the corridors of power. It’s helped to reset agendas by becoming an adviser to some of the decisions that were being made. We’re proud of helping to bring that about and fund it – the CEO Richard Forbes is doing a great job in continually advocating for the industry across multiple political venues.”
Today, Countrywide boasts strong brand awareness within the foodservice market. Looking to the future, Jeff says “the opportunity for us is to continually support our Countrywide Members and focus on ensuring we are delivering for them. If you’re a food manufacturer, foodservice distributor, food outlet or industry stakeholder who shares our belief in the power of independent business, we’d love to connect.”
Learn more at www.countrywide.net.au and 📩 get in touch to explore how you can partner with Countrywide by emailing marketing@countrywide.net.au
Key to Galipo Foods’ success: treat staff like family
Industry stalwart Sebastian Galipo is founder and owner of Galipo Foods in Adelaide, which celebrated its 40th year in business in 2023 and is a proud member of Countrywide. He started with a $5000 loan, running the business out of his garage on the outskirts of Adelaide. Five years later his brother Bill joined the business – with the two of them sharing the same vision and attitude to success. Today Galipo employs more than 230 staff, servicing more than 3,5000 business across Australia with a fleet of 60 trucks.
“We really value our staff and we look after them and they do the same in return”
Sebastian Galipo - Founder Galipo Foods
Key to the business’ longterm success has been its commitment to treating its staff like family. Sebastian explains how he was inspired to put this approach into practice: “Through Countrywide I was able to go to the US to do some study tours, and it was when I went to one particular foodservice operation in New York that it suddenly dawned on me how the owner was really looking after his staff, making them feel special and rewarding them exponentially and it was this that set his business apart from the competition. I brought that back to Australia and it took the business to the next level – I really worked on looking after our staff and caring for them in more than just a financial sense.”
Group Photo on Galipo Foods 40th Anniversary, April 2023
He is proud of the fact that many staff have been at the business for decades. “Our first employee, Robby Costanzo who started with me in 1983, is still with us and we have many who have been with us for 10, 15, 20, 25, even 30 plus years. We really value our staff and we look after them and they do the same in return.
galipo foods’ first warehouse premises in stepney, sa, 1988
“When Covid hit, in three days we went from trading at 100 per cent to 55 per cent and falling and we didn’t know where the bottom was, so we had to make a lot of changes. During that time our GM Nathan Narayanan had staff come to him from all parts of the business - the warehouse, the drivers, office and admin staff, sales staff - asking him to cut their pay by 20 per cent to help keep the business going. We tried to resist but they would not take no for an answer. Once we got back on our feet we paid everyone back, but it was such a great team effort during that period and our sales saw a fairly quick increase back up to 75 per cent which enabled us to sustain ourselves. It was very humbling for me to get texts and emails from staff telling me not to worry, that they would not let the business go down.”
“[During Covid] It was very humbling for me to get texts and emails from staff telling me not to worry”
Over the past four decades Galipo Foods has changed dramatically in some ways but not in others. Split into two operations, one serving contract clients and the other foodservice, it serves some of the nation’s largest franchise and corporate chains. But it’s never forgotten its roots - the independent operator and family business.
galipo foods - one big family
“We’re dedicated to maintaining our basic ethos of caring about what we do,” Sebastian affirms. “That’s sustained us, and even today our customers tell us how pleased they are with the level of service.
“Everything we do is based on fairness, win-win and caring. We treat our suppliers fairly and they support us. If there are supply issues coming up, like shortages of a seasonal product, they’ll let us know and we’ll buy it up and hold it so we don’t let our customers down. It can’t be one party holding a cricket bat over someone else’s head - that’s just not sustainable.
“All our best managers and supervisors have come from within - over the years I sometimes brought in specialised managers from outside but it was never the same. When we promote from within, we maintain our culture of doing the right thing, supporting people and providing excellent service for our customers.
“Looking to the future, our management team led by our general manager is growing the business and implementing new systems and technology to keep improving our efficiency and service offering. It’s about what we do as a team - to deliver really great service with a caring attitude about how we go about our work. I think the rest just comes, because if you care about everyone in the chain and try to do the right thing by them, it pays off.
“A lot of our new business comes from referrals and it just keeps growing, but I think the challenge is going to be the macro changes within the industry. For example in the last five years there’s been a huge uplift in the number of meals being delivered to home instead of eating out as much. We need to work with our customers and suppliers to navigate the moving landscape and the new trends as they evolve.”
