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Growing a business is not always about scaling up or diversifying

Growing a business is not always about scaling up or diversifying. An increase in the value placed on provenance means aspiration can be found closer to home, says cider maker Barny Butterfield.

Farming is a seedbed of entrepreneurship, where business people make generational choices, day-to-day. Making major, strategic decisions, such as which grain to plant or which animal to raise this year, is part of the job. But there’s always the risk of upsetting your applecart, says Barny Butterfield, founder of Sandford Orchards. The answer, he says, is being in control of the details.

Barny began his agricultural career on a chicken farm and still raises organic birds on his own land today. But his life took a different direction because of his love of and talent for making cider.

“There was a time when I couldn’t afford to go to the pub, so my employer used to supplement my pay by letting me make my own brew on his farm. In a sense, I was paid in cider, as workers have been for hundreds of years,” Barny muses. “But it also taught me that I was never going to get paid more for doing a simple job. The only way to make more money was to go into business for myself.”

Luckily, he had already discovered that, while he was well suited to chicken farming, he was extraordinarily talented at making the sweet beverage. “That first year, the Crediton rugby team and I had finished my first batch by halfway through the summer,” he says. “So the next year I made more and I have continued to make more every year since.”

While Barny didn’t initially set out to make a business out of cider, it has become his main source of income. “Farming may seem like a steady, conservative industry, but all farmers are natural entrepreneurs because we have to make big decisions, where we bet on ourselves. Should we plant wheat or return to grass or move into pigs? We are used to putting our necks on the line.”

But while Barny can spot an opportunity, he is also acutely aware of the dangers of failing to deliver on promises. The secret, he explains, is to know what your strengths are. “We don’t want to become a massive producer. We want to produce a high-quality cider for people who are looking for provenance.”

While the number of public houses continues to diminish, those that remain have to compete with other food outlets and increasingly sophisticated supermarket offerings. As a result, many pubs are now offering an experience, packaging up locally produced food, beer and cider with a rustic setting. And consumers are willing to pay more for the privilege.

“Historically, Devon has boasted the most diverse styles of cider and varieties of apple, but both were in danger of being bulldozed by the might of mass production,” he says.

“We are expanding Sandford Orchards, but by making sure any new orchards are located within a couple of miles of our cider mill,” he says. “That means we can manage quality, from the moment the apple trees go into blossom until the cider pours into the bottle. As a result, we know that we’re harvesting specific varieties at the right time to maximise flavour.

“As soon as you outsource production in a business like this, someone else is making these decisions for you. Instead of focusing on scaling up, therefore, we’re focused on reinvesting.”

It is this mindset that is appealing to higher-end retailers such as M&S, whose buyers are placing more value on provenance and have intensive checking processes to verify producers’ claims.

This is essential for weeding out those profit-hungry mass producers who are only interested in cashing in on the hipster pound.

“As this market grows, more big brands will start to repackage their offerings so they can exploit it,” Barny explains. “But with some due diligence, it is easy to spot the cider-makers with a level of integrity, control and product knowledge, and the larger players who have simply redesigned their packaging so it looks like an artisan product.”

This is important, as, unlike larger producers, Sandford feeds profits back into the local economy, whether it is sourcing fruit-pickers or engineers.

As Sandford has grown alongside thisexpanding market, Barny has been careful to take only measured risks. “We have grown quickly, but we’re entirely funded by borrowing – bank lending – and there’s no investor group or funding pot. And we’ve always had a great relationship with our bank because we live up to our promises,” he notes.

“What I predict tends to be what happens and we’ve never over-stretched ourselves as a result. Instead, we’ve grown at a rate we’re comfortable with. This means we’ve been able to keep pace with the processes that make the business tick, particularly in production.”

According to Barny, Haines Watts has played a valuable role in supporting the business as it has grown over the past three years.

He has worked closely with Haines Watts Partner David Park on a day-today basis, predominantly to restructure the business so it is in robust shape as it transitions to a medium-sized venture.
And, he adds, when more specialist expertise is needed, David always has a colleague within the group who can step in. “I’ve also found that David has an ability to work collaboratively with other professionals, whether it is lawyers or bankers,” he adds.

“But what I value even more is the fact that he’s willing to say when he doesn’t have an answer. Instead, he has an extensive network of professional expertise within the Haines Watts group,
so when we do get their opinion, it is well considered. There’s nothing worse than half-baked advice.

“If I was to give one piece of advice about running a business, I would warn that trying to save money by doing something yourself that you should be leaving to an expert always ends up
taking ten times as long!”

Haines Watts View

“I have worked with Barny for the past three years and it’s clear it’s his passion for the Devon cider industry that has really driven the business forward.

We have an honest and open working relationship where he relies on me to work with all the professionals he brings in to advise him. In fact, that’s his forte – knowing where his true strengths lie and when he needs to turn to an expert, whether it’s business planning or marketing.

He is also committed to producing a genuine artisan product – not just normal cider in a pretty bottle, but the result of his extensive knowledge of cidermaking. This commitment has recently been recognised by highend retailers and industry alike.

Sandford’s ‘The General’, which is aged in casks that are 100 years old, beat tens of thousands of other products to make it into the Guild of Fine Foods’ Great Taste Awards top 50 food and drinks in the UK, for instance.

It shows that Haines Watts’ groupwide business expertise and Barny’s knowledge of local cider-making traditions is a winning blend.”

David Park Haines Watts

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