Listen to the segment from 10 July 2024, featuring Brandon Reynolds from The Yoghurt Shop.
Listen to our segment with Catherine Sayer, FBA CEO here: https://familybusinessassociation.org/article/hear-from-catherine-sayer-on-3aw-australia-overnight-with-tony-mcmanus
Listen to our segment with Michael Stillwell from Stillwell Group and special guest, David Mann here: https://familybusinessassociation.org/article/hear-from-michael-stillwell-from-stillwell-group--and-special-guest-david-mann-on-3aw-australia-overnight-with-tony-mcmanus
Listen to our segment with Emily Hammon from Scenic World here: https://familybusinessassociation.org/article/hear-from-emily-hammon-from-scenic-world-on-3aw-australia-overnight-with-tony-mcmanus
Listen to our segment with Rachel Beard from A.H. Beard here: https://familybusinessassociation.org/article/hear-from-rachel-beard-from-a-h--beard-on-3aw-australia-overnight-with-tony-mcmanus
Listen to our segment with Val Montagnana-Wallace from Hyphen here: https://familybusinessassociation.org/article/hear-from-val-montagnana-wallace-from-hyphen-on-3aw-australia-overnight-with-tony-mcmanus
View the transcript here:
Tony McManus
If you don't mind, it's Family Business Australia. It’s a wonderful organisation which I've had a fair bit to do with over many, many years, and the focus on businesses that are run by family members, obviously. One of which is Brandon Reynolds, Chief Operating Officer of The Yoghurt Shop.
Brandon Reynolds, good morning.
Brandon Reynolds
Good morning indeed. How are you, Tony?
Tony McManus
It's lovely to have you on the program, and the wrap that when Catherine, who's the CEO of the wonderful organisation, Family Business Australia. It's known as these days because it includes now great family business out of New Zealand. But Family Business Association is extraordinary on the basis that so many people that run these family businesses have enormous challenges, which we'll get to in just a moment.
But briefly, your story, and I've got some calls waiting, so there's people who want to talk to you as well, which is great. How did it get underway, The Yoghurt Shop, in what was presumably and remains a pretty cluttered market?
Brandon Reynolds
The Yoghurt Shop, well, our family business started in the Adelaide Central Market. You'll be shocked to hear it was a yoghurt shop. We, when I say we, a very young me, but primarily my father, Simon Reynolds, he opened this shop in the Adelaide Central Market putting out some really great yoghurt that didn't really exist at the time. I heard you, Simon yourself, talking about Ski Yoghurt earlier. 21 years ago when we started this business, that was really all it was. It was Yoplait, there was Ski. The flavours were Peach Plain and Strawberry, and we came out with a product which was Greek yoghurt. I'll touch on what Greek yoghurt in a second, but I know that came up. We put these amazing quality products out, we topped it with berries, we topped it with fresh mango, we topped it with crumble and Anzac biscuits, and it really went boom from there. Within about 4 years, we've opened around 10 stores across Adelaide, and continued to grow stores for the next 10 years and it just went on.
Tony McManus
Simon Reynolds, if that was father, is he the one that was involved in advertising?
Brandon Reynolds
No, he never told me that.
Tony McManus
Okay, different Simon Reynolds. Thank you for that.
Couple of quick calls, Branco, good morning to you.
Caller - Branco
Yes, guys, good morning. It's an interesting subject about the yoghurt. I eat it on daily basis. Half a kilo of plain, Greek yoghurt is the best. Little bit in afternoon as a snack, and the evening. The best thing for your stomach. That’s all I can say.
Tony McManus
And Branco, how do you have your yoghurt? Just straight from the dish? Or do you put it in a plate? Do you have fruit?
Caller - Branco
Big spoon. I eat little bit, close it up, back in the fridge. Tomorrow I'll continue. When it's finished, I'll go get another one.
Brandon Reynolds
We need more people like you.
Tony McManus
We do, Branco. Well done you. Thanks.
So Brandon, tell us about the distinction then from these, I mean, we just grew up, as Simon, the other side of the glass mentioned, things like Ski yoghurt and it was heavily promoted and advertised. And this probably goes back, I'm assuming the early 70s?
Brandon Reynolds
Yeah, I think yoghurt in the Western world sort of came as this product that was years and years ago. It was milk, it was cultured, technically, and lots of additives went in to make the product that that was Ski and Yoplait, and the other sort of major brands. And then 20 years ago, the actual Greek yoghurt came around into sort of the UK, and the US, and Australia, through, I suppose, Greek family recipes, which is how ours came to be.
What makes a Greek yoghurt is that it's strained. So, you know, the Yoplait and the Ski of the world, they are stirred yoghurt. So, you get 1000 litres of milk, you add in your thickeners, you add in your various pieces that sort of fill it out. In a Greek yoghurt, you actually get your 1000 litres of milk, and you strain out the whey. So, depending on how much straining you do, you're left with more milk to create less yoghurt. And that's where you get the thickness from. Not what you put in, but what you take out, and that's the distinction of ours.
Tony McManus
Brandon, to start a business at that time, presumably Father, and now, you and your brother, I think it is, isn't it? That are sort of pretty much in charge? There must have been, that time, some challenges around, here we go, a thing called a yoghurt shop. It was already going at the beautiful Adelaide Markets and then you thought or Dad thought, what's the opportunity around that?
Brandon Reynolds
Well, it was really interesting. The Yoghurt Shop name actually came about, for your listeners in South Australia, and those who know the Adelaide Central Market, we had the mushroom shop next to us. We had the cheese shop, we had the camera shop, and so, when we actually first opened the store, Dad wasn't too concerned about marketing at the time. He just knew he had a great yoghurt, so threw these yoghurt in the chiller cabinets, he handed out samples left, front and centre, and the products sold itself, but he hadn't given the shop a name yet. And after about 2 or 3 months of trading, he'd realised everyone that was walking down this market was going oh, I love that yoghurt at that shop. The yoghurt shop, you know that yoghurt shop. The name came from there. Fortunately, because the product was selling, we had the opportunity to expand out, and so we did. So, one yoghurt shop turned into many.
Tony McManus
And only at this stage in South Australia?
Brandon Reynolds
Yes, in South Australia, in the retail format, since over the 20 years, we've expanded into the independent grocery market in South Australia, and over the last 3 to 4 years, we've gone into national retailers and around the world.
Tony McManus
So available in Victoria? Available in Western Australia?
Brandon Reynolds
Yes, available in Coles right across the country, Aldi right across the country, and right throughout the IGA network. Plus, if you're in Victoria and the East Coast, all your friendly, independent grocers. So, fruit and veg, you'll find it there.
Tony McManus
What about price point in terms of when you're putting these things to market, Brandon? Because you and I know what some of those majors do. Prices go up, prices go down, and there's been an enormous focus on that, on cost of living at the moment and what people are paying for when they go to the supermarket. Presumably that's something of which you're very aware?
Brandon Reynolds
Though we're conscious of price, more than that though, we're conscious of creating value for customers that enjoy our product. We are definitely the most expensive yoghurt every place we operate in right around the world. In saying that, we're the most expensive because the reason our yoghurt tastes so good is because the amount we strain it. So for about every 1000 litres of milk, we’re only left with about half of that in the yoghurt. And consumers that buy our products, and for your listeners that enjoy our products, now they'll know it's the thickest yoghurt in Australia and it's that taste that brings consumers back and has really led to the demand that's been able to help us grow the business.
Tony McManus
What about sugar content? Is that something which you've looked at and what are the customers’ feedback around that?
Brandon Reynolds
Yeah, it's interesting. Sugar. So, obviously, 20 years ago, sugar wasn't as hot an issue as it is at the moment. We're in a really interesting spot where we've grown so much with our customer favourites. Our biggest selling flavour is our base yoghurt topped with a caramel made out of regional NSW and an Anzac biscuit which is produced here by another family business in South Australia, Kytons Bakery, so that one there is going to be a bit of an indulgent yoghurt. But then on the other side of that, we've got an unsweetened Greek yoghurt, which is topped with fresh berries. So, it really depends on, I suppose, the time of day and the snack you're after. But sugar content high or low, you get all the benefits of having a really, natural product, which is high in calcium and so many other nutrients.
Tony McManus
It feels like a massive leap, Brandon, on the basis of when Simon, Father Simon, was setting it up and running that business those years ago in the Markets and probably serving somebody like the great Bob Francis, who would sit there and hold court on a regular basis back in the day from 5AA I've no doubt. I can just imagine Bob sitting there and having yoghurt at 11:30 in the morning.
Brandon Reynolds
There were a lot of people that remember the free samples.
Tony McManus
Yeah, I'll bet. There was free samples of beautiful yoghurt in the Adelaide Markets. Point of that is though, to move that to then this incredible production must have been a huge leap.
Brandon Reynolds
Yeah, I think while we're on the family business topic, Simon started the business. Simon, my father, and he grew it from a small store in the Markets to then what became the really big retail network at the time. You know Roger Drake, the Drakes family, one of the biggest independent retailers in Australia now. Another great family business, the Romeo's family. Another great network in South Australia. They were coming to the store trying to find my dad because the consumers didn't want to just buy it in yoghurt shops anymore. They wanted to buy it on their grocery shop in a supermarket, and so we had this really great leg up from some family business, the independent grocery space in SA.
We managed to actually pack some yoghurt out of our least busy store at the time, which was out of the avenues in the suburbs of of Adelaide, and we drove it in the back of my dad's station waggon, put it on the shelves, no labels, no barcodes, no tamper proof. Consumers loved it. And really from there, we've just kept working with other great businesses in Adelaide, and then across the Eastern Seaboard, and now as far as Saudi Arabia and China.
Tony McManus
You want to see the text that I'm getting. So, it's familiar with a lot of people right across Australia. Farmers Union as a brand, the Greek style, very popular. The other one here, “Best yoghurt for me. I've recently turned 72” says a text. A Greek yoghurt. Things like Apple Crumble and Caramel.
Brandon Reynolds
Yes, so we do the Apple Crumble in Aldi and the Caramel Crumble in Aldi at the moment. It's very popular. Again, indulgent, but if you're a yoghurt lover, one thing we found is that consumers that love yoghurt want the best yoghurt, and so, we're really in a privileged position to have a great product that, I suppose, consumers not only like yoghurt but they love ours.
Tony McManus
Another text here says, “Ask Simon about flavours. Do they come and go in different styles over the years and presumably, continue to evolve in terms of preference?”
Brandon Reynolds
They have, and that comes back to your sugar point. We actually used to make a flavour which so many people love, not enough to keep it on the shelves. We used to do a rhubarb yoghurt, which was very, I suppose, specialty rhubarb whole, you know, a fond place in lots of people's hearts, and that was very unique. When we actually started selling to the supermarkets, we had over 40 flavours. It was very hard to scale up. At the moment, we hold around 12 flavours which we sell in a whole range of sizes but they are still very unique. To find Anzac biscuits and caramel on top of the yoghurt, it is still rare in other parts of the world and yeah, along with our Apple Crumble, Lemon Twists, Strawberry Shortcake. They're definitely unique.
Tony McManus
Oh, sounds gorgeous. I only wish we could do a taste test as we speak. Simon's drooling there. The other side of the glass.
Simon
That would be magnificent. That Anzac biscuit and caramel. I'm a caramel fan and that Anzac biscuit and caramel. I need to travel to South Australia just to get it.
Tony McManus
But we can buy it here though, can't we?
Brandon Reynolds
100%. There are 7-11 near you? You could pop in there.
Simon
Oh, okay, yeah, there's one just down the road.
Brandon Reynolds
We’re on the UberEats there.
Tony McManus
Of course you are. Is there any platform you're not covered at the moment, Brandon Reynolds?
Brandon Reynolds
If the Woolworths buyers are listening, they could give me a call, but otherwise, we've been really lucky the last couple of years to expand into so many new retailers, whether it be convenience or grocery. And just recently, I don't know if I can announce this now but.
Tony McManus
You can, sure you can. Breaking news, everyone. Listen to this. Breaking yoghurt news.
Brandon Reynolds
We've just been put on as the new exclusive yoghurt of Qantas as of October, so there's so many avenues you're going to be able to try our products and not only try them in the future, but we're really excited how consumers are loving the response now in all places that buy them.
Tony McManus
Tell me about packaging - how important?
Brandon Reynolds
Packaging has become, you know, on so many of the sustainability pieces, very important. I mean, making sure that it's recyclable, that it's not pointless. One of the big things at the moment is making sure that you're using as little packaging as you can, so the impact of the product is small on the environment as it needs to be. One of the big challenges we have at the moment is consumers wanting a spoon and the world not wanting more plastic spoons in the world. So, we do lots of unique and fun ways to try and educate consumers around how they can have a little impact and making sure that the packaging represents that.
Tony McManus
No spoon for you.
Brandon Reynolds
Well, if you want a spoon, as I tell everyone, ask for one at the counter and make sure it's, hopefully, not wooden enough that makes the yoghurt taste bad. Go for a bamboo.
Tony McManus
A bamboo spoon. James, a little note here saying, “Hazelnut smoothie from The Yoghurt Shop at the Adelaide Central Market.”
Brandon Reynolds
Yes, that used to be my favourite too. So, we make some house made gelato that we do in the store and turn them into some very indulgent smoothies. The hazelnut one, we actually did that with a little bit of chocolate and whipped cream on top. That was my childhood favourite. I don't know how many of those I could go through now, but yeah, very high quality stuff and I'm good to hear that your listeners enjoy it too.
Tony McManus
Brandon, you stay there. We'll take some more calls in just a moment. Come and join us. What is your favourite yoghurt? Are you familiar with The Yoghurt Shop? If not, maybe you should be. Blatant plug there. It's not the intention, but a blatant plug. Happy to do that. The Yoghurt Shop, calls the other side.
Brandon Reynolds from The Yoghurt Shop is the Chief Operating Officer for The Yoghurt Shop. Good question via text, Brandon, and challenges, I guess, for any business, and presumably books will be written about this for a long time, challenges for any business during pandemic. What was that like for you and The Yoghurt Shop?
Brandon Reynolds
Yeah, it was interesting to be in food during the pandemic. It was a strange place, not hospitality, I should say. But will the grocery stores be opened? It was actually quite a good time for sales in one sense, which was different to so much of the rest of the community. But it was a challenge getting everything moved around, stock in, staff on time. We had our facility off and at times 50% workforce because of COVID illness but fundamentally, just working through that entire period was challenging. Challenging numbers, without say more.
Tony McManus
Yeah. Nervous and challenging?
Brandon Reynolds
Yeah, I mean one of the big things for us was we were selling into markets like the airline markets. We were selling into countries that heavily relied on air freight. One example was Brunei. We were selling lots of yoghurt into Brunei. Now, when the pandemic hit, Brunei decided to stop all flights, like many countries did. The one thing they forgot is that a lot of their imported perishable food came in on planes. And after about 4 weeks, they realised if they weren't going to fly passenger planes, they would have to fly food in with no passengers on there at all. And in one specific picture I was sent by our partner that sent this doctor to Brunei, they actually had boxes of our yoghurt strapped to aeroplane seats on a flight into Brunei.
So, some of the international business was heavily impacted in that aspect and certainly, all of the airline business, and in hospitality, and food services decimated. But we managed to pivot where we could, and in many ways, with the stores closed, we found ways to get take home packs into the homes where so many people were enjoying food at home where they could, and so, where we were able to, we did pivot, and we came out of it stronger.
Tony McManus
And what about staffing levels during that and since?
Brandon Reynolds
Well, with borders closed, absolutely, it was a challenge. Not only was it hard to get people in and get people to want to stay and work under the conditions, but also, you struggle with actually getting people in that are new. Training people in making yoghurt is a bit of a specialty skill. So, if you've only got the team you've got and access to no one else, it makes it a struggle. We were also growing through the period, which was, I suppose, a unique for us, but fundamentally, it grew the team. Consumers still love the products at home. There was still yoghurt going on top of kids’ breakfast and going on into smoothies so, while it was challenging, it made everything we did stronger.
Tony McManus
Renee asked the questions, “Does The Yoghurt Shop make and sell yoghurt in day bowls as they do in Greece? Thanks from Renee.”
Brandon Reynolds
Yeah, we do. In some of our stores, we do. We call them smoothie bowls, our sort’s a little different because they are a bit more contemporary for the trendies, I suppose, that comes through our stores. But certainly, the way that we make all of our yoghurt, especially our unsweetened yoghurt, I don't want to say it's Greek as you can get. As my father might say, “The only thing that will make it Greeker is we actually had, plucked off one of his business partners here and put it in the vat.” But fundamentally, it's a Greek yoghurt for all intents and services.
Tony McManus
The challenge is, I guess, about expansion, something no doubt you look at very closely because they can go very quickly, very wrong, very quickly.
Brandon Reynolds
Yeah, I mean, coming back to family business, it's one of the great things about a family business. If you can manage the succession piece, it is actually, I had the opportunity when I was a lot younger to be exposed to so much of the business like many generations and family businesses are, and so, coming into the position where I am now and my brother, we've grown up with the business unlike, you know, non-family business might not have that connection. So, the growth and challenges we're going through, we're coming through the lens of all the history of how we've got to where we are, and it's not only that. There's purpose beyond just making a profit for your shareholders, you're actually growing wealth for your family and creating a great product along the way. So, it feeds all of the, I suppose, extended piece of a family outside of business, and the business is a great vehicle to do that, especially when you make a product you're passionate about like we are.
Tony McManus
Little 3rd gens on the way?
Brandon Reynolds
I'm not going to commit to that live on air, but I think there will be in the future.
Tony McManus
Well, hang on, your time, it's just gone midnight, so anything's possible.
Brandon Reynolds
If it's possible tonight, I'll be shocked.
Tony McManus
But it's that generation, and we often talk about the gens in family business, as you well know, where they become more important and there's all sorts of amazing issues that come out of that that also need to be managed.
Brandon Reynolds
Yeah, and I mean some great examples, I mean some of the businesses we work with, 5th and 6th generation businesses, the Bulla family. We've produced products for Bulla in the past, and that family that exists now, they've got a business which is all 6 generations deep and thousands of family members. Some participating, some not. They've gone through all the challenges, and you could put that up there with the Coopers family and so many other great names. But then, talking about our specific experience, we’re 21 years in, soon, we'll be looking toward the 3rd generation. What we're really trying to do is, you know, a good family business has the same fundamentals as any good business. So, actually trying to set up a business that is sound, sustainable, producing great products, and, I suppose, the unique challenges around a family business is making sure that you've got a next generation that is interested, understands, have the experience they need to sort of take it on. I'm hoping the 3rd generation won't come cut me out just yet. It's been pretty easy because they're not here.
Tony McManus
No, yeah, that's right. Not yet. But who knows? So, you speak about Coopers Brewery out of South Australia? I mean, what a fantastic family business that is. Here's the question. Let's say you put down a beautiful Coopers’ ale in front of Glenn Cooper or a big bowl of Yoghurt Shop yoghurt. Which one do you think he would reach for first?
Brandon Reynolds
I reckon he would be very kind and we'd have both.
Tony McManus
There you go. Excellent work. Well, we wish you well. So, in terms of the shops, the retail outlets out of South Australia into places like Victoria around Melbourne, for example, would make sense. Is that on the cards down the track at some point?
Brandon Reynolds
Look, for us, because we've grown so much in the supermarket space, what we actually plan to do, and you're getting a few exclusives here tonight actually, but we're actually changing our model a little bit to, instead of having retail stores stand alone as a profit centre, actually creating flagship experience stores in some of the larger cities we work in. So, somewhere that we'd like to operate it around, you know, the Prahran Markets or the South Melbourne Markets, having a store that not only just have the flavours that everyone's used to, but can provide experiences beyond just that and have somewhere that people that really love our products, and there are many of them out there in Australia, can come try new things, get specials, see different ways that they can be used in foods so that the foodies and food lovers can, I suppose, get an extra special taste of what we do.
Tony McManus
Debs just sent a text and says, “Can't find the branded Coles online shopping.”
Brandon Reynolds
Ok, well, it should be there. If you have a look, we've got our Caramel Crumble, I believe, and all of our pod range there in 280 stores in Victoria at the moment. So, if you tell her to send me a message online, I will make sure she...
Tony McManus
Good on you, Deb. Have a look at the website The Yoghurt Shop. And another wag says, “I want a salt and vinegar yoghurt.” Really?
Brandon Reynolds
Ok, that one's going to be harder to get through, but...
Tony McManus
No, I don't. I don't think so. Final question for me. You talk about those suppliers and those relationships that any family business might have, and they'll be businesspeople listening as you well know, the challenges around those relationships, how important?
Brandon Reynolds
Very important. I mean, just to give you an example, we recently did a video where we spoke about the supply chain and how important it is to have really sound, I suppose, business partners. We make a cup of yoghurt, the Caramel one, I keep going back to that. Very popular. The plastic container that it's made in, is from a South Australian family business, the box that that cup goes in is from a South Australian family business, the farm that we buy our milk from, South Australian family business. 4 generations in. The caramel, the Anzac biscuits, family businesses. We know the people that make the products, we know how much passion they have for them, and when you've got that, all the other challenges can be worked out. And not only are we growing our pie, we're growing theirs. It's good to do, it gives us purpose, and everything tastes great at the end. So, when the consumers are happy and everyone's getting an opportunity to add to that, that’s a plus and everyone wins.
Tony McManus
There's a great chocolate manufacturer out of South Australia as well.
Brandon Reynolds
I think I know who you're leaning to.
Tony McManus
Yeah, I do.
Brandon Reynolds
Look, we'd love to put some Haigh’s frogs on top of the yoghurt. Maybe there's something for the future.
Tony McManus
I know. The great Haigh’s Chocolate brand out of South Australia.
Brandon Reynolds
I'll ring Alice there and see if she'll let me do it.
Tony McManus
Yes, thank you, and pass on our address. Not so much for me, but certainly for Simon Owens, the other side of the glass. He’s a chocoholic. Great to talk to you, Brandon. I hope we do it in continued success.
Brandon Reynolds
Thank you. Thanks Tony, thanks Simon, thanks for having me.
Tony McManus
Good on you mate, by Simon Reynolds, Chief Operating Officer, The Yoghurt Shop. One of the great businesses, Family Business Association.
