Barilla (company) explained

Barilla
Type:Società per azioni
Founder:Pietro Barilla Sr.
Location City:Parma
Location Country:Italy
Area Served:Worldwide
Key People:Guido Barilla (chairman)
Industry:Food processing
Revenue: 4.869 billion (2023)[1]
Operating Income: €301 million (2023)
Net Income: €284 million (2023)
Assets: €4.392 billion (2023)
Equity: €2.223 billion (2023)
Num Employees:9,040 (2023)
Divisions:20 brands

Barilla is an Italian multinational food company founded in 1877. It is the world's largest pasta producer.[2]

History

The company was founded in 1877 as a bakery shop in Parma, Italy, by Pietro Barilla Sr. The company expanded in 1908, and in 1910 Barilla inaugurated a new pasta factory equipped with a "continuous baking" oven.[3]

After the death of Pietro Barilla Sr., his sons Riccardo and Gualtiero took the reins of the family company, increasing the production and distribution of products, thanks to technological innovations which allowed the company to rapidly transform itself, over the course of the 1920s and 1930s, into the most important bread and pasta company in Emilia-Romagna.

In 1919 Gualtiero Barilla died, leaving his brother Riccardo at the helm of the company together with his wife Virginia.

In 1947 Riccardo also died and the management passed to his sons Pietro and Gianni, exponents of the third generation.

With the advent of the two Barilla brothers, the company experienced a phase of great development, and in 1952 the production of bread was suspended to concentrate solely on pasta. In those years, Barilla quickly transformed itself from a regional company to a company with a strong presence in northern Italy, thanks to the quality of the products, the balanced prices and to its innovative capacity, such as the use of cardboard to pack pasta.

In 1960 Barilla became a joint-stock company, and in the following years it opened new factories, in Rubbiano, which marked Barilla's entry into the cracker and breadsticks sector, and in Pedrignano, just outside Parma.[4]

The company remained in the hands of the Barilla family until 1971 when the American chemical company W. R. Grace acquired a controlling interest. However, Grace left day-to-day control in the hands of Pietro Barilla, grandson and namesake of the company founder. Pietro reacquired control in 1979, and the company has remained privately held ever since.[5]

In 1993 Pietro Barilla died at the age of 80 and the management of the company passed to his children Guido, Luca, and Paolo. This led to the fourth Barilla generation, and throughout the nineties the company continued the internationalization process, which began at the beginning of the decade under the management of Pietro, opening in 1999 the first production plant in Iowa, in the United States.

This expansion continued with the acquisition of various foreign companies in the food sector, such as the MISKO pasta company in Greece (1991), the Turkish pasta company Filiz Makarna (1994), the Swedish crispbread producer Wasabröd (1999), the joint venture with the Mexican Herdez in 2002 (pasta brands Yemina and Vesta).[4] In 2002 Barilla took over the German company Kamps AG, which was then sold to the Czech Agrofert in 2013, except for the French soft bread company Harrys, which still belongs to the Barilla Group.[6] In 2007 Barilla opened a second production plant in the United States, in Avon, New York.

At the beginning of 2021 Barilla finalized the acquisitions in Canada of the Catelli company (including Lancia) and, in the United Kingdom, of the majority stake in Pasta Evangelists, a London-based start-up for the production of fresh pasta for home delivery; operations that mark the international growth of the Barilla Group and its desire to identify and anticipate consumer needs and values around the world.

In December 2022 the Group also acquired Back To Nature, a US brand specialising in plant-based, non-GMO products.

Overview

The Barilla family has been at the helm of the company since its foundation in 1877. Barilla Group controls Barilla (multinational pasta maker), Mulino Bianco, GranCereale, Pan di Stelle, Pavesi, Voiello, First and Academia Barilla (Italy), Harrys (France), Wasabröd (Sweden), Catelli (Canada), MISKO (Greece), Pasta Evangelists (United Kingdom), Filiz Makarna (Turkey), Back To Nature (United States), Yemina (Mexico) trademarks.

The group produces many types of pasta, and is the world's leading pasta maker with 24.5% of the Italian market.[7] It produces pasta in over 160 shapes and sizes. Barilla brand pasta is sold in numerous restaurants worldwide, such as those belonging to the Pastamania chain.[8] It is also the leading seller of bakery products in Italy. Through its acquisition of the Swedish company Wasa, it is the world's leading producer of flatbread (a Scandinavian staple), selling 60,000 tons annually.[9]

Barilla Group has 30 production sites, 15 in Italy and 15 in the rest of the world: production plants are located in Italy and in Greece, France, Germany, Norway, Russia, Sweden, Turkey, the United States (in Ames, Iowa and Avon, New York), Mexico and Canada. The company also operates mills in Italy, Greece, Sweden, Turkey, the US and Canada. While its central office is in Parma, it has corporate offices in several other countries as well, such as Austria, Belgium, France, Germany, Greece, the Netherlands, Poland, Russia, Slovenia, Sweden, Switzerland, Turkey, the US, Mexico, Brazil, Australia and Japan. Barilla is distributed in the UK by Euro Food Brands Ltd. Barilla's Italian production facilities are located in Parma, Foggia, Marcianise, Castiglione delle Stiviere, Cremona, Melfi, Rubbiano, Novara, Muggia[10] and Ascoli Piceno.[11] Its plant in Greece (near Thiva) is the third largest in Europe.[12] The plant where the pasta was made is noted on the packaging by a code letter,[13] whereas products made in Italy are explicitly labeled as such.[14] The wheat used to make the final product is purchased from around the world.[14]

In 2023, the company had a turnover of €4.869 billion, with a net profit of 284 million euros.

In 2024, Barilla was ranked as the first food company in the 2024 Global RepTrak® 100 rankings for its reputation, securing the 29th position worldwide.[15]

Other activities

In 1987, on the initiative of Pietro Barilla, the Barilla Historical Archive was created to collect, preserve and enhance the company's historical documentation, starting from 1877. The archive is located in the Barilla plant in Pedrignano, near Parma, and it contains over 60,000 documents divided by sector, also including the documentation produced by the brands subsequently incorporated into the company: Voiello, Mulino Bianco, Pavesi, Filiz, Wasa, Harrys.[16]

On 30 November 1999, the Italian Ministry of Culture declared the Barilla Historical Archive "of remarkable historical interest" because it "bears witness to the development of the food industry in Parma and the evolution of society in Italy".[17]

Since 2018 the new internet site is active and available, in which it is possible to visit the different sections of the archive, among which are the photo library and TV advertising with more than 2700 commercials.

The Barilla Historical Archive, in 2001, has been among the founding partners of Museimpresa, an Italian association that collects more than 100 members as Museums, Archives and Cultural Institutions and that represents a very useful place for meetings, changes of experiences and knowledge.[18]

In 2014, the Barilla Historical Archive has contributed to install, at Corte di Giarola near Collecchio (Parma), an ancient 11th century Benedictine Grancia, the Museum of Pasta, with equipment and documents of extraordinary interest, including an entire pasta plant dating back to 1850 and the oldest sample of industrial spaghetti dating back to 1837. The Museum of Pasta is inserted in the circuit of Museums of Food of the province of Parma, as well as the Museum of Tomato, installed in the same Corte di Giarola.

In 2009, the BCFN - Barilla Center for Food & Nutrition (now "Fondazione Barilla") was established: it is a multidisciplinary, independent think tank working for food sustainability and healthy lifestyles.[19]

Sponsorship and promotion

As of 2020 the 'global testimonial' of the company is Roger Federer. The company has sponsored the Italian national basketball team on several occasions,[20] as well as the Italian race car driver Alex Zanardi.[21] Furthermore, Barilla is currently the main sponsor of the US alpine skier Mikaela Shiffrin[22] and tennis player Coco Gauff.[23]

In 2021, Barilla created a Spotify playlist with songs timed just long enough for the perfect pasta.[24]

Controversies

In 2013, after the chairman Guido Barilla made comments regarding his opposition to adoption by gay families and unwillingness to showcase gay families in his advertisements,[25] some called for a boycott against Barilla products.[26] [27] [28] Guido later apologized,[27] and the company began advocating for LGBTQ causes.[29] [30] [31] The company has partnered with the Reuters Foundation on the Openly initiative, a global LGBTQ news platform.[32]

In 2022, two Americans filed a class action suit in a California court against Barilla. They accused the company of emphasizing its Italian identity while the majority of its products are manufactured in the United States. Barilla attempted to have the case dismissed, but a judge ruled that the plaintiffs had suffered "economic injury" due to the deceptive advertising.[33] [34]

Notes and References

  1. https://www.barillagroup.com/media/filer_public/7a/45/7a459a82-523d-4ff4-aff5-ecab776b9394/barilla_group_bilancio_economico_2023_eng.pdf Annual Report 2023
  2. Web site: Guido Barilla. Forbes. en. 23 August 2019.
  3. Álvarez . 1988 . LA MÚSICA EN EL CONGRESO DE CULTURA DE CANARIAS (Noviembre de 1986 - Febrero de 1987) . Revista de Musicología . 11 . 1 . 324 . 10.2307/20795224 . 20795224 . 0210-1459.
  4. Web site: BARILLA HISTORY. 18 June 2021. Archivio Storico Barilla. en-GB.
  5. Web site: Barilla: Italian or American. live. https://web.archive.org/web/20201001184721/https://www.barillagroup.com/en/barilla-italian-or-american-all-there-know . 1 October 2020 .
  6. Web site: Barilla Signs Deal To Sell Lieken To Agrofert. 18 June 2021. Barilla Group. en.
  7. https://www.businessintelligencegroup.it/quanto-vale-il-mercato-della-pasta-in-italia-e-nel-mondo/ Quanto vale il mercato della pasta in Italia e nel mondo
  8. Web site: Unleashing the 'Mania' - 7 million plates of pasta sold... and counting! . Asia Franchise & Business Opportunities (April - June 2008) . 9 February 2013 . https://web.archive.org/web/20130227014405/http://www.pastamania.com/press/AsiaF_070408_6-10_FINAL.pdf . 27 February 2013 . dead .
  9. Web site: 29 September 2020. HomePage. 18 June 2021. www.wasa.com.
  10. https://news.italianfood.net/2020/10/08/barilla-acquires-pasta-zaras-factory-in-trieste/ Barilla acquires Pasta Zara's factory in Trieste
  11. Web site: Barilla - Good for You. Good for the Planet. Barilla Group. en. 17 July 2019.
  12. Web site: Barilla July 2008 Report. live. https://web.archive.org/web/20201001201555/https://www.barillagroup.com/sites/default/files/200807_BarillaReport_Long_ENG_0.pdf . 1 October 2020 .
  13. Information from Barilla Spaghetti n.5 packaging
  14. Web site: Pasta, Pasta Sauce, and Recipes Barilla. Pasta, Pasta Sauce, and Recipes Barilla. en-US. 17 July 2019.
  15. Web site: Barilla ranks as the first food company in the world for reputation in the 2024 Global RepTrak® 100 . Barilla Group.
  16. Web site: The Barilla Historical Archive. 18 June 2021. Archivio Storico Barilla. en-GB.
  17. Web site: BARILLA HISTORICAL ARCHIVE IS ONLINE OVER 35,000 DIGITALISED PHOTOS, VIDEOS AND ADS 141 YEARS OF MEMORIES OF A COMPANY THAT REFLECTS ITALY'S HISTORY. 14 November 2018. 13 July 2021.
  18. Web site: Museimpresa. 13 July 2021.
  19. Web site: Mission Vision - About Us - Barilla Foundation. 18 June 2021. www.barillacfn.com. en.
  20. https://www.fiba.basketball/oqt/italy/2016/photos#iset=a4ae6351-859d-4a6d-94b3-9057ae5f641c&iid=ae32302c-b9e5-4fb1-985e-61fb1044e84f Photos - FIBA Olympic Qualifying Tournament (Italy) 2016
  21. Rachel Cohen, Amputee race car driver Alex Zanardi to compete in NYC Marathon in handcycle category, USA Today, 11 January 2007
  22. https://www.barillagroup.com/en/press-releases/barilla-extends-partnership-us-alpine-skiing-star-and-2014-olympic-gold-medalist BARILLA EXTENDS PARTNERSHIP WITH U.S. ALPINE SKIING STAR AND 2014 OLYMPIC GOLD MEDALIST MIKAELA SHIFFRIN
  23. Web site: A NEW ACE JOINS THE BARILLA TEAM. 18 June 2021. Barilla Group. en.
  24. https://www.foodnetwork.com/fn-dish/news/barilla-spotify-how-long-to-cook-pasta-playlists Barilla Past Playlists
  25. News: Barilla Pasta Won't Feature Gay Families In Ads, Says Critics Can 'Eat Another Brand Of Pasta'. Cavan Sieczkowski. 26 September 2013. 26 September 2013. Huffington Post.
  26. News: Italian pasta brand Barilla in gay advert row. 26 September 2013. 26 September 2013. BBC News.
  27. News: Guido Barilla, Pasta Chairman, Faces Backlash Over Anti-Gay Comments. Sara C Nelson. 26 September 2013. 26 September 2013. Huffington Post (UK).
  28. News: Pasta-maker in hot water as rival posts pro-gay imagery on social media. VcVeigh. Trevor. 29 September 2013. The Observer.
  29. News: Human Rights Campaign says Barilla has turned around its policies on LGBT. Somashekhar. Sandhya. 19 November 2014. The Washington Post. 12 January 2017.
  30. Web site: Barilla goes from worst to first on gay rights. Wallace. Gregory. 19 November 2014. CNNMoney. 12 January 2017.
  31. Web site: How Barilla transformed into a trailblazer for corporate equality. Weiss. Geoff. 20 November 2014. Entrepreneur. 12 January 2017.
  32. Web site: OPENLY . OPENLY . 10 November 2023.
  33. News: Romo . Vanessa . 2022-10-27 . 2 Californians bought Barilla pasta thinking it was made in Italy. Now they're suing . en . NPR . 2022-10-28.
  34. Web site: Valinsky . Jordan . 2022-10-20 . Is Barilla really 'Italy's No. 1 brand of pasta?' A lawsuit says no CNN Business . 2022-10-28 . CNN . en.