Paris. By this stage, the company had also branched into packaging, with
Buitoni Poligrafico.
In 1941, just before hostilities were declared between Italy and the
United States, Buitoni Food Corporation was founded in the USA. It com-
prised a pasta plant in New Jersey, a factory making sauces in Brooklyn
and a restaurant in Times Square, New York as well as a luxury Perugina
chocolate shop in Fifth Avenue. Happily, the breaking of contact caused by
the war was only an interruption.
The post-war period saw a phase of rapid growth for Buitoni. The plant
at Sansepolcro was remodelled in 1946. New factories were opened in
Aprilia and Foggia in 1961 and at Camaret, in France, in 1966.
In the meantime, Buitoni’s European operations had been consolidated
into one organization, Internazionale Buitoni Organizzazione (IBO) in
order to compete more effectively. The US operation was consolidated into
IBO in 1966 and in 1969 Buitoni and Perugina regrouped under the name
Industrie Buitoni Perugina SpA (IBP). IBP went public in 1972 and was
quoted on the Rome and Milan Stock Exchanges.
In the early 1970s, Buitoni extended operations into the UK with the
acquisition of Bibby’s, as well as into Holland and Sweden. The company
was also present in Brazil. The crisis in Italy during the early 1970s caused
financial disruption to the company and it was forced to float a part of
Perugina to raise cash.
The company did not sparkle after this time. In 1985, IBP was taken over
by Carlo de Benedetti’s holding company, CIR SpA. Buitoni became
Buitoni SpA. The senior management was replaced and the marketing
functions in particular were reorganized. Buitoni’s sales doubled between
1985 and 1987, and results improved.
During this period, Buitoni launched a premium pasta brand,
Rasagnole, and two new lines, Preziose and Bella Napoli. There were also
a series of acquisitions of companies in Italy producing rice, olive oil, char-
cuterie and condiments.
Food products were not central to de Benedetti’s ambitions and in 1988
the company was sold to Nestlé for $1.4 billion, the third largest takeover
deal in Europe for that year. The acquired company made losses in 1988 of
$33.1 million and 1989 of $53.8 million while its activities were rationalized.
Nestlé and Buitoni
When Nestlé took over Buitoni, Buitoni products sold in more than 50 dif-
ferent countries. There were hundreds of manufacturers that produced over
400 different types of pasta. Barilla was the European market leader with 20
per cent, followed by BSN with 11 per cent, Birkel with 4.5 per cent, Lustucru
with 4.5 per cent and Buitoni with 3.5 per cent. Private labels accounted for
The customer market domain: Managing relationships with buyers 65