Ferrarelle, a family pact to let the children enter (and invest in cans to land in the USA)

As it slows down the consumption of wine, it increases that of mineral waters. In 2024 the market in Italy went up to around 3.5 billion euros, against 2.8 in 2019: +25% in five years (Mineraqua data). The market grows because, of course, prices have increased, to partial compensation of the greater costs of raw materials. But also because « there is greater knowledge of the quality of the water: really, The water is the gold of the future « , says Carlo Pontecorvo, president, CEO and Member of Ferrarelle with the family. The company is in the sparkling phase which, with a retail market share declared above 8% after Nestlé Water (San Pellegrino), sources of Vinadio (Sant’Anna) and San Benedetto, has among the Vitasnella brands, essential source, Electa and Boario, 428 employees, plants in Darfo Boario Terme and Riardo (Caserta).

« Ready for leap abroad »

The group approved a 2024 budget with revenues from 3% to 241 million, equal to over a billion liters of water sold (1,046 million), and a gross operating margin of 24.1 million (25.9 million in 2023); diversify with new products (also in a can); It is said « ready for leap abroad », the United States in the leadafter the 60 million invested in the last four years on Italian plants. The 2025-2027 industrial plan plans to climb exports from the current 2% to over 5% of revenues, which are estimated to touch the 275 million in two years. Meanwhile, the transition to the second generation is prepared.

Capital and generational passage

Carlo Pontecorvo and his wife Linda Ricciardi (family of entrepreneurs, were the shareholders of the AVIR, the historic company of glass containers) have in anticipation of transfer their quotas of LGR Holding, which controls Ferrarelle 100%benefit companies, to the three children Michele, Adriana and Carlottathrough a family pact. « We have a strong entrepreneurial descent, it is physiological that the management goes to succession and must happen in an orderly way – says Pontecorvo -. We believe a lot in the creation of value around the company. All three of our children have an interest in that the family expresses itself through the business. A well -guided company, which produces results, makes a contribution to the country’s economy. We have the responsibility of doing well for this too ». Today the holding is headed by 52% in Pontecorvo and Ricciardi and for the rest to the three children with 16% each. « Each of them will have 33% – says Pontecorvo -. There is a family pact in progress. Michele, with Adriana and Carlotta, is in the Board of LGR and in the Ferrarelle Foundation ».

Investments: 60 million in four years

The passage takes place at a favorable moment not only for revenues, but also for the availability of cash and investments. The net financial position, from Budget 2024, is positive for about 20 million and the capital investments were 17.6 million last year. Added to 30 million in 2022-2023 and those on the budget for this year they do precisely 60 million in four years, on establishments but also on buildings such as the building of Offices in Boarioe the Amedei Polo in Pontedera (Pisa). « We plan to invest 20 million this year – says the entrepreneur -. The innovation of plants and product increases efficiency, allows you to contain costs and offer the innovative products that the consumer asks ». Investments with their own resources are accompanied, for Riardo, to Invitalia funding: « The positive financial position also derives from an effective use of subsidized financial instruments ».

The result prize

Among the growth engines there are also on the one hand the introduction of external managers in the first line, on the other the bonuses to employees. « Everyone receives a result prize of about three thousand euros per year, Convertible in welfare – says Pontecorvo -. Companies must generate more efficiency, more productivity and transfer part of the results to wages. It is the fastest way to increase purchasing power. Family companies begin to move, waiting for other interventions ». Behind the expansion there is of course the research, both to protect the Acquifera Reserve (« Our Riardo basin is a resource of Made in Italy ») and for the development of workshops such as the one inaugurated in Riardo last November. Born with the Startup Sanidrink of which Ferrarelle has 60% (the rest of the Matteries chaired by Luigi Nicolais, former president of the CNR), will produce antimicrobial materials for food packaging (a sort of film that lengthens the duration of the packaged food), medical devices, products for children.

Former surgeon and owner, Pontecorvo noted Ferrarelle from Danone in 2005. Today it has been 20 years that is Mr. Ferrarelle. « The last few years have not been easy, with the surge in the costs of raw materials starting from energy – he says -. We have increased prices, but if we managed to grow it is because we have incurred the increase in costs with our resources. We have always paid and invested a lot in industrial plants: at least one hundred million since I am. We had a glass line, now there are two, with a factory completely renewed in Boario. AND We are expanding the line to Riardo for the cans of cans, has a capacity of 18 thousand cans per year and will go to production with the new set -up by December». Ferrarelle will produce mineral water and drinks as lemonade and orange water. The more the new Electa water, from a natural source with organoleptic qualities. The turning point of aluminum takes place after the sale of the French Pet recycling plant Aloxe, at the end of 2022from which, however, Ferrarelle continues to supply with the « preforms », the test tubes that they blow become bottles: « We will keep at least 30% the share of recycled material ». But it is accelerating with the cans that the group plans to serve the United States, where the package likes because it practices.

United States and duties

The main markets are France and Germany, then Israel, the Emirates, Australia, the UK and others, now the expansion in the USA will also take place for acquisitions and despite the unknown of the duties. « On America we have a significant investment plan – says the entrepreneur -. The duties are a threat, but the United States are a must, a necessity: you have to go there and that’s it. We generate cash flows, we can face expected costs ». The international distribution contract with Danone has resolved: « We start again with our network ». This is also why there is the acquisition of a local company. « We are looking for an opportunity in the USA. We had already tried to detect a plant in Mountain Valley, in Arkansas. Let’s try again, « says the CEO of the group that has external participations in the Hat Fund, in the L’Uditrice house La Nave di Teseo and in the White Bridge fund. The plan can be extended to other foods, after the acquisition of Amedei (chocolate) in 2017.