In the 1960s, a plastic, air-tight tap was invented for bag-in-box wine, making storage more convenient. Today, all modern wine casks now utilise some sort of plastic tap, and it is this niche market that Conro Precision has excelled in.

Established in 1981, family-owned South African Conro Precision began life exclusively dealing with mould-making and engineering, with an initial focus on design and precision engineering for the injection molding and press tooling industries.

However, the company soon started manufacturing filling equipment for the bag-in-box market, and it was through a relationship with a flexible packaging company that a new idea was born — producing wine taps.

Financial Director and board member of Conro, Neill Smith, has been in the company for just over a decade and is involved in all its strategic business decisions. He tells us that although the company is involved in a small quantity of various other plastic components, manufacturing fixtures and closures for bag-in-box wine is Conro Precision’s biggest market.

“We are fortunate enough that 60 percent of our business is in exports,” he explains. “So we’re involved with the U.S., UK and China. In the U.S. we have two major customers: The Wine Group, the third largest wine company in the U.S. in terms of sales volume, which dominates U.S. boxed wines, and also the New York-based Constellation Brands Inc. In the UK, we sell to Constellation’s UK company and in South Africa our three biggest customers are Nampak Flexible, Industri-Bag and Quality Fill.

“The products we produce are developed after years and years of research in conjunction with our customers. So we work very closely with them, listen to their needs and applications needed for a specific product, and then develop something in response to our findings.”

FAMILY-OWNED
Continuing, Smith discusses some interesting aspects to the business that helps to set it apart from the competition. “Our key strength is that we are flexible. Because the business is family-owned, we think that we can change a lot quicker than a more corporate company would be able to.”

An ability to react to change is key in business, but there are a range of advantages that go hand in hand with being part of a family-owned business, as Smith attests. Family members, for example, are likely to share the same ethos and beliefs on business decisions, providing the firm with an extra sense of purpose and pride — and, more importantly, a competitive edge. And so common values, strong commitment, stability and loyalty are all aspects that are commonly associated with family working together in business.

“The key to the company’s success is that we are very hands-on. The two fathers that started the company are now working on a consultant basis; we use them as sound boards to bounce ideas off and receive some advice from. They’re basically there for their leadership and experience. They each have sons in the business, and those sons are hands-on in the company seven days a week.”

Building a family enterprise means members are more likely to put in the extra hours and effort needed to make it a success. Family is often more likely to understand the need to take a more flexible approach to working hours, and this is something Conro Precision has clearly demonstrated.

Further signifying the strength of people in the business, the firm puts skills development high on the agenda. “Some of our staff started with the company in 1981 and they are now in middle management. And some of them have now retired, but their children have come into the company and have developed through the ranks, having started off on assembling machines or as cleaners. So we put a lot of emphasis on in-house training and we also outsource training. If we identify somebody as management material, we would actually send them on a course. So we prefer to promote from within,” Smith explains.

INCREASED DEMAND
Under the circumstances of challenging economic times and currency fluctuations, Conro Precision has been “very fortunate”, says Smith. “At this time it actually looks like the demand for bag-in-box wine has increased, so we’ve actually been selling more products.

“In the last year, we’ve been running the factory 24 hours a day, seven days a week. We’ve implemented a third shift, so we’ve got people working three eight-hour shifts, and we run 48 weeks of the year on that system. So I won’t say we’ve benefitted from the economic crisis, but we’ve definitely increased our volumes and product turnover.”

However, because the firm exports 60 percent of its business, the strength of the Rand against the dollar and pound has affected finances. But, with the increase in demand, Conro Precision has sold more products and overall has performed well.

FUTURE
Because the business has received such success, despite difficult trading conditions, product line extension is in the pipeline. “We’ll definitely launch a new product at the end of the year and are looking at expansion in all sectors of BIB globally,” Smith elaborates.

“We’ve also invested in more moulding machines and we’re looking at obviously investing more capital there, because it will increase the plant’s efficiency,” he adds.
With investment and expansion on the horizon, Conro Precision looks set to take advantage of the increased demand identified in the industry. “This is a niche market and we feel that we understand the market, so I think we’ll do well in the future,” says Smith.

Currently managed by the family’s second generation, who emphasize core business objectives including innovative product design, attention to detail, complete quality management and a high level of service, the family aspect to the business will undoubtedly carry Conro’s success on for years to come. “Hopefully the business will pass on from generation to generation,” Smith concludes.