Ask Barry Beracha to name his favorite Earthgrains product, and the company’s chairman and chief executive officer says Earth Grains Sesame Bagels. And International Hearth bread loaves. IronKids Bread for sandwiches. Grant’s Farm Potato Bread. And Harvest Top bread, too.
It’s understandable that Beracha can’t choose just one. After all, Earthgrains manufactures, distributes and markets more than two dozen brands and hundreds of varieties of fresh baked and refrigerated dough products in the U.S. and Europe. But ask Beracha what he considers his single most significant achievement at Earthgrains and the answer is the company’s consistent, positive growth since it was spun off from Anheuser-Busch in March 1996.
“Back then we had great hopes but little history to show we could deliver what we have accomplished,” Beracha says. “There was quite a bit of skepticism about how we would do and very little backing from the investment community.” After three years of acquisitions, product diversification and improved operations, “we’re no longer a turnaround company,” he says. “We’re a solid performer within our industry.” The numbers back him up: with 19,400 employees worldwide, 60 plants in the U.S. and Europe and annual sales of more than $1.9 billion in fiscal year 1999, Earthgrains ranks among the leaders in the baked goods industry and is a Fortune 1000 company.
From the start, Beracha has focused on two areas of emphasis at Earthgrains: total quality commitment (TQC) and technology. He became acquainted with TQC during his 17 years running A-B’s Metal Container Corp. “It involves focusing the organization on meeting customer needs better than the competition can,” Beracha says. TQC takes a lot of dedication and communication, but once it’s established, “your business becomes stronger because you multiply your capabilities through every employee, every day.”
The other mainstay of Beracha’s leadership is technology. “The baking business is thousands of years old. So what can possibly be new in baking breads or snack cakes?” he asks. “Actually, quite a bit, and it revolves around information technology”— specifically, getting the right products in the right quantities to customers when they need it. “Most of Earthgrains fresh-baked products have a shelf life of four days or less, so we’re using information technology to redesign our distribution systems so we can deliver a fresher product, less expensively,” Beracha says. “It’s a significant change for the fresh baked goods industry here in the U.S. to operate that way. We see a lot of potential there.”
As a relatively new member of both Civic Progress and the RCGA’s board of directors, Beracha also sees much potential in the St. Louis region. In fact, Earthgrains has passed up chances to relocate its headquarters out of town. “The advantage here is a very good work force and work ethic,” Beracha says. As proof of its commitment to the region, the company recently established a Financial Shared Services Center with 140 employees in Earth City, which handles much of the centralized accounting and financial transactions for Earthgrains’ 45 U.S. plants.
Beracha serves as co-chair of Civic Progress’ Infrastructure Committee and is a member of the Education Committee. The former, he says, is “lining up priorities and plans for the next 10 years,” such as driving airport expansion, highway improvements, MetroLink and new Mississippi River bridge projects. Regarding the Education committee, Beracha says, “It’s exciting to see that the involvement of the business community can have a positive impact on the school system. We have lots of plans that should pay off in the next few years.”
Beracha’s dedication to education is evident in Earthgrains’ involvement in the St. Louis Public Schools’ Academic Achievement Through Nutrition project. The program helps parents and guardians understand the connection between healthy eating and academic success. Presentations are planned for each of the district’s 68 public schools this school year.
In addition, Beracha serves on the board of Saint Louis University and the Washington University Olin School of Business National Advisory Council.
His own education was at Pratt Institute in his native New York, and at the Wharton School at the University of Pennsylvania, where he earned an MBA in operations research and industrial management. He joined A-B in 1967, and married his wife, Barbara, the same year. “After our wedding day we drove out to St. Louis and have been here ever since,” he says. Their three children all were born here, and recently all moved back here to pursue careers.
Beracha has more time now to enjoy his favorite pastimes— golf and skiing, and music from classical to REM—while guiding Earthgrains to even better performance. “We’re anxious to show in the next three years that we can be a consistent high performer, one of the premier food companies,” Beracha says. “But it’s a tough day-to-day business, baking bread, getting it fresh to our customers and servicing them well.” However, that challenge is part of the appeal, he admits. “I think we’re having fun here. I know I am.”
