As William Aitken & Co (WAC) celebrates 80 years of service in New Zealand's FMCG sector, we sat down with Graham Aitken, grandson of the original founder and Chairman, to reflect on the company's journey.
From its inception during the Second World War to becoming a trusted name in the industry, Graham shares valuable insights and memorable experiences. This interview provides a unique perspective on the evolution of WAC, the significant changes in the FMCG market, and the key leadership lessons learned along the way.
Graham, 80 years, tell us how it all began.
It started in the 2nd world war, my grandfather founded the business. He had an importing business before the war and was very high up in running government provisioning for the US troops stationed in NZ. MY grandfather had a lot of contacts and founded William Aitken & Co just before the war ended.
At that stage, New Zealand needs were a lot simpler than they are now. Importing food that wasn’t produced in New Zealand. A lot staple items such as rice, dried fruit, jam, canned fish, nuts. And olive oil. We started very early on Lupi Oil. I was born in 1950s, and my memories are of these sorts of products.
How has William Aitken & Co evolved over the last 80 years?
It has been affected by how the grocery industry has evolved. Back then, it was a whole lot of very small corner dairy stores and grocers. Some in small groups together but we didn’t have anything like the supermarkets we have now.
When Foodstuffs started opening New World supermarkets (very small by today’s standards) we really evolved, supplying the supermarkets as that industry was emerged.
Also, back in the 40s and 50s, we imported salt as it wasn’t produced in New Zealand at that stage. Dominion Salt wanted to develop the site at Lake Grassmere (South Island) and a refinery in Tauranga, they wanted import. But to do that, the major salt importers became their sales agents. Through to the ‘90s, we were selling salt to industrial users.
What have been some of the most significant changes in the FMCG industry since WAC’s inception, and how has the company adapted to these changes?
Really the more sophisticated food requirements of New Zealanders, that’s what has changed a lot. Back in the 50s, things were very basic – meat and two veg.
I’m told we started importing Lupi Olive Oil because grandmother liked it! At that stage the company was based in Wellington, a pretty small business, not a lot of people were using Olive Oil. There was a strong Italian fishing community in Island Bay, Wellington, which proved to be a major customer area.
The increasing sophistication of food requirements has dictated to a degree what has been successful for us.
How have the products and brands that WAC imports and markets evolved over time?
For my time, I joined in 1980s, Olive Oil was becoming a mainstream product. We were the oldest importer of olive oil at that stage. It gave me something to sink my teeth into. It was by far our major product for a long time. We were a market leader in Olive Oil in the 80s and 90s, growth was just astronomical.
Supplying supermarkets has become our business because that is where you buy and sell food in New Zealand. In other countries, there are a lot of delicatessen type shops. We certainly have them in here, like Farros, but if you want to sell a reasonable number of products it’s through the supermarket.
Servicing supermarkets has become more of a specialist skill. Rachel’s skills have been perfect for the time. She has been brought up through the supermarket industry, and has great insight and knowledge of how it works.
What role has technology played in transforming WAC's business operations over the past few decades?
There is a lot less paper around the office! When I started, everything was done by fax. Orders flying in all directions. And now, completely online. You could say, it has simplified it, but you need to make sure your systems are capable. And of course, email makes things a lot easier.
Even if we’re dealing with suppliers on the other side of the word, at times we can get messages going back and forth several times a day. Before fax, it was a cable. The ease in which we communicate internationally has become a lot easier.
With global supply chains facing more challenges today than ever before, how has WAC adapted to ensure the consistent supply of products?
We have developed relationship in the global supply chain, particularly with freight forwarders. Information flow is much better than what it used to be. Knowing when a container has been picked up, arrived at port – all of that info is in the hand now. Whereas before, it used to be a lot more hit and miss. Freight forwarders have better information available to them now and that is paired with the deep relationships we have formed.
What have been some of the key leadership lessons you've learned while at the helm of company?
I have always liked to keep things simple. We use third party businesses to do parts of our business that we just don’t want to do - for example, warehousing and logistics.
Learning to play to our strengths is something that I’ve learnt over the years. Don’t try to get involved in areas where you can spend a lot of time but are not very productive. Put it out to third party companies and do what we do well.
What challenges and advantages have you experienced leading a family-owned business through multiple generations?
Inter-generational achieves respect overseas. As soon as we start talking to a supplier, they see we’ve been in existence for 80-years and have been dealing with other overseas companies for decades. This tends to get trust and respect. Which we’ve earnt.
And now with Rachel Murrell at the helm, how has she influenced the direction and strategy of WAC?
Fair to say, Rachel has modernised the business - as much as I like to think I’m a modern thinker! Rachel has a really solid understanding of how the supermarket industry works. She came up through Cerebos Gregg's and learnt the industry really well through that corporate upbringing. Her insight has helped align WAC with how the industry works now. That is quite different to what that was 30yrs ago.
Graham, do you have any parting words of wisdom to share with us?
Having had the opportunity to work in a third generation in the business has been fantastic. You have to earn respect, but when people see that you are trustworthy and your business is trustworthy, the respect that you get form them is really a tremendous thing to have.
I’ve had the chance to deal in Mediterranean food which I love. My life’s work has been really rewarding. We developed the olive oil market in New Zealand. From something that people poured in their ear, and the occasion bottle in the deli, to being a mainstream product. That has been hugely satisfying.
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