The self made man behind PFD Food Services

PFD Food Services has been a valuable partner of MVRC for many years.

By Spencer Rogers, Communications Editor, MVRC

To listen to Rick Smith AM, you wouldn't think from his soft Scottish accent that he has lived in Australia for the past 60 years. And not one for seeking the limelight, youcould be forgiven for not knowing much about his incredible achievements since leaving Dundee in 1959.However, as the man behind Australia's biggest and most successful food distribution companies PFD Food Services, Rick is one of Australia's most successful businessmen. He is also a great family man, a hugely generous philanthropist, and a multiple Group 1 horse owner. He still dreams of winning a Melbourne Cup and Cox Plate – and such is Rick's recipe and commitment for success, both of thesecould easily become a reality.

I caught up with Rick recently to find out about his journey to creating PFD Food Services, his philanthropic work, and his life as a horse owner.

Sliding Doors

"Everyone has sliding door moments in their life. I have had quite a few – and nearly all involving my wife.

When Rick first met Joan in Dundee in 1958, he was about to start a journey of sliding door moments. Within two years,he would create a new life as a driver-salesmanon the other side of the world in Morwell, Victoria, atPFD Food Services (known then as Processed Fish Distributors).

Having recently become engaged in early 1959, Rick followed Joan and her parents (Jim and Annie Markie) who decided initially to relocate to Queensland – thoughthe hot weather made Traralgon in Victoriaa more attractive proposition, and they moved south renting a property from the local barber by the name of Jim McDonald. 

"Jim had a son who was training to be a priest at the seminary in Werribee,"Rick recalls. "Well, the son had a part-time job at PFD as a driver, but he gave notice to pursue other ambitions and recommended a young ex-truck driver from Scotland who might like the job."

And so – in another classic sliding doors moment – Rick was introduced to the barber, Jim McDonald, and he seized the opportunity to become PFD's new driver-salesman. Rick had form as a driver-salesman, having worked in the role previously for a soft drinks company back in Scotland after leaving school at the age of 15.  Despite being awarded a five-year scholarship, application to studies didn't suit Rick's personality at the time,and "I made a right mess of it which is something I've always regretted," remarked Rick.

PFD Food Services

The company started as a fresh fish merchant about 100 years before Rick's arrival in 1864, trading as J Hill & Son. By the time Rick joined the Morwell branch as a driver, the Processed Fish Distributors business was under the control of the processed fish products group Irwin &Johnson, a large global seafood supplier based in South Africa.

Over the next eight years, the PFD Food Servicesbusiness quickly grewthanks to severalacquisitions that saw Rick become manager of the branch beforehe was offered the role as general managerbased in Kensington in Melbourne – in the early 1970s. 

When I&J decided to sell out in the mid-1970s, Rick was first in line. The only problem was money.

"I knew I had some long service and superannuation that I could use for some of it," remembers Rick.The other half of the equation was to form a buyout consortium with one of their big customers – Melbourne's wealthy Liberman family. 

When the Libermans decided to realise their investment after a decade or so of solid growth, Rick seized the opportunity to take full ownership of PFD and became the sole owner of the company in 1988.

Further expansion continued from 1988 under Rick's stewardship as the business completedalmost 30 acquisitions to make it the country's largest food distribution company. Rick's daughter, Kerry Smith,is the company's chief executive and has overseen the company's growth to become a business turning over about $2.2 billion.

The organisation employs more than 2,500 people across a network of almost 70 distribution branches and has nearly a thousand trucks delivering fresh and processed foods and dry goods.

The next generation of the Smith family now controls the day-to-day operations of PFD,with Rick still involved but in a more advisory capacity and as a Board member.Along with Kerry, Rick's son, Lindsay looks after variouswholly owned joint ventures under the family's control, and his daughter Sharon oversees their philanthropic activities.

Rick admits that he has turned down numerous approaches over the years from private equity firms and competitors looking to buy into the business.  However, in June this year, he finally completed a deal three years in the making that sawWoolworths acquire a 65% buyout of PFD Food Services.

Despite the takeover, PFD will continue to operate independently under chief executive Kerry Smith, and Rick will still provide valuable guidance.

Lindsay Smith, Kerry Smith, Rick and Sharon Landy

Philanthropy

It is no surprise that Rick Smith is heavily involved in philanthropy – a self-made man who wants to give back and help others. His daughter Sharon looks after their philanthropic endeavours, and among the many charities they support, Rick references the work they do to support the Cabrini and the Alfred Hospitals. This would be a valuable endeavour at any time – but is needed now more than ever.

Rick also tells me about the Reach Foundation –founded in 1994 by Jim Stynes and Paul Currie to help develop the social and emotional wellbeing of young people. In my research, it came as no surprise to uncover several videos from staff at the Reach Foundation thanking Rick for his generous contributions to their projects.

While PFD Food Services is a highly valued commercial partner of the MVRC, it has also supported various other sporting clubs. Back in 2000, Collingwood Football Club was working its way out of the doldrums, and Rick put this hand up to help. 

National Jockeys Trust

Rick transcends his philanthropic work and love of horse racing through his support of the National Jockeys Trust (NJT). He was already providing support for jockeys and their families before the Trust was established in 2004 and remembers when he first became aware of the NJT's need for support.

"The morning after my horse Descarado won the Caulfield Cup in 2010, I was reading the newspaper when I came across an article saying that the NJT was looking for funding," he recalls.

Both personally and via PFD Food Services,Rickmakes major contributions to the National Jockeys Trust through annual donations, sponsorships, donations for events, and generous prizes for raffles and auctions.

Rick was made a Patron of the National Jockeys Trust in 2017.

Horse ownership

Rick recalls first getting into horse racingwhen he used to go with Joan's dad to the TAB in Traralgon in the mid-1970s – and soon after,he started taking the well-trodden path to Melbourne to watch the races up close at the various metropolitan tracks. He got his first taste of horse ownership around this time, too, with a horse trained by Jack Besanko – a name synonymous to this day with thoroughbred training. 

"I think my first horse with Jack was Bay Amie which I had for about three years. It would win about one race a year."

Fast forward to the earlynineties, Rick's path to successful horse ownership took off when renowned Randwick trainer (and winner of the 1961 Melbourne Cup) Frank Lewis – "He's still alive at 101," Rick adds fondly – bought him a $16,000yearling called Gold Brose in 1992. 

The colt won its first three starts, including the Toohey's Silver Slipper at the odds of 140-1.  The $100,000 purse for winning the Slipper took the colt's winnings to $160,000 and marked the beginning of many Group 1 victories with the country's leading trainers and often with his friend and business partner Bruce Mathieson. After his successful racing career, Gold Brose went to stud in New Zealand.

A Group 1 honour roll to be proud of

Onto Group 1 and black type racing this year, and Rick has certainly done all he can to ensure he is a strong chance of achieving Spring Carnival glory: he has Chris Waller's Blondeau, who is targeted towards the Golden Eagle held in Sydney on Derby Day; the Mick Price and Michael Kent Jnr-trained Deepstrike looking towards the Ballarat Cup on 20 November; the Hawkes-trained stayer Zeyrek who ran a slashing fourth in the Metropolitan and looks set to be a strong contender in this year's Melbourne Cup; and last, but by no means least, there's the Anthony and Sam Freedman-trained French import Delphi who is on a Caulfield Cup – Melbourne Cup path.

When prompted if he thought he could win a W.S. Cox Plate, Rick smiled and, in his soft Scottish accent, lent forward and said:

"I've got a better chance of winning the Melbourne Cup, but I would dearly love to win a Cox Plate."

Rick and Kerry Smith with renowned UK trainer William Haggas at Ascot.