The Riverland family business behind Nippy's beverages is making a bold $11.5 million investment in automation, betting on technology to double its output despite mounting cost pressures in the manufacturing sector.
A family legacy born from a kitchen table
Many children start their entrepreneurial journey with a humble juice or lemonade stand, but the Knispel brothers went much further. In the 1930s, Alic Knispel grew citrus on a small Riverland farm. By the 1960s, his four teenage sons began juicing oranges at the kitchen table and selling the fresh juice locally. That humble beginning gave rise to the iconic Nippy's beverage brand.
Today, beverages account for approximately two-thirds of the business, alongside the family's farm and fruit packing operations. The company is now led by Alic's son Jeff and grandson Ben, who serve as joint managing directors.
Vertical integration and cost challenges
Nippy's has long benefited from vertical integration across farming, packing, transport, and beverages, giving it greater control over its supply chain. However, like many Australian manufacturers, the business faces significant cost pressures driven by rising fuel, freight, plastics, and packaging expenses.
To boost productivity and remain competitive, Nippy's has committed $11.5 million to replace an ageing citrus packing line with modern automated technology. The new system is expected to double the company's output.
"Investing in automation is critical to improving productivity and driving down costs," said Ben Knispel, joint managing director.
Banking on long-term partnerships
The funds for this next stage of growth came via BankSA, part of the Westpac Group. Nippy's has maintained a banking relationship with them for generations. "It's very important to have banks standing behind businesses at this time. You're only as good as the network you're in," Knispel added.
David Firth, Westpac state general manager for SA and national emerging corporates, expressed pride in supporting such an iconic South Australian business. "The South Australian economy is underpinned by so many fantastic family businesses that play the long game, who reinvest through the cycle and build brands that are successful locally, then nationally and some even internationally," he said.
Firth emphasised the importance of productivity for Australian manufacturers. "Productivity is one of the biggest levers Australian manufacturers have right now and automation is often central to that. When businesses like Nippy's invest in modern, automated equipment to lift throughput and reduce unit costs, it's a practical way to protect margins and build resilience for the next generations."
The investment marks a significant milestone for Nippy's, ensuring the family business remains competitive and well-positioned for future growth.
