Dusseldorf It was less than two years ago that Phil Rumbol started at Bahlsen in Hanover. The Briton was the first non-family boss of the biscuit manufacturer with a history of 133 years. Werner Michael Bahlsen, 72, had already retired to the head of the Board of Directors in 2018. Rumbol should make the stagnating business fit for the future – especially abroad. Because the home market for biscuits and cakes is largely considered to be saturated.
Now the Bahlsen and Rumbol surprisingly go their separate ways. The family company announced this on Thursday afternoon. “Phil Rumbol has set important milestones for the realignment, initiated the implementation of the transformation and thus laid an important foundation for the future,” said Werner Bahlsen and thanked him for his commitment.
A successor for the CEO is currently being sought. Daughter Verena Bahlsen, who was previously said to have ambitions for the top position, is not available for this. The Briton Rumbol developed the future and brand strategy for Bahlsen together with the unconventional and thoroughly self-confident 28-year-old.
This strategy should be retained. However, it should be implemented by someone other than Rumbol. A number of top managers had left the biscuit manufacturer in the past few years, which is in the middle of renovation. Michael Hähnel is now the boss at the sausage manufacturer Rügenwalder Mühle. Lars Engel runs biscuit competitor Griesson-De Beukelaer (Prinzenrolle).
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Werner Bahlsen had made it clear in earlier discussions with Handelsblatt that none of his four children should run the company. “A company is not a playground for the children of entrepreneurs,” he said.
The first non-family CEO leaves Bahlsen.
(Photo: Bahlsen)
Up to five percent, the senior has already transferred the company to the fourth generation in equal parts. Johannes and Andreas Bahlsen are on the Board of Directors. Verena Bahlsen, who studied communication and management in London and New York for a few semesters, has been an “active partner” in the company since 2020.
Three women are responsible for the operative business at Bahlsen
Your function has since been renamed “Chief Mission Officer”. Verena Bahlsen will continue to work closely with the new CEO and is responsible for the long-term strategic direction. She is a member of the four-person management board. This consists of the former Ikea manager Cornelia Kaufmann, who is responsible for culture and IT, Jonathan Duffin, who is responsible for the markets, and Claire Sutton, who runs the brands.
This means that three women at Bahlsen are responsible for day-to-day operations. 100 years ago, founder Hermann Bahlsen brought two women into the management – that was very unusual for the time.
The lively Verena Bahlsen is no stranger to the public. In 2019 she came under fire for statements about capitalism and the company’s Nazi past. After a shitstorm on social media, she apologized for her “thoughtless” remarks that Bahlsen had “treated well” his slave laborers during World War II: “As the next generation, we have responsibility for our history.” Bahlsen now abandons the company’s controversial role under National Socialism by historian Manfred Grieger.
The family business is going through turbulent times. In 1999 Bahlsen split up into the third generation after years of dispute. Werner M. Bahlsen received the sweet biscuits, brother Lorenz the salty biscuits and his brother-in-law got real estate. “Of course it was painful, but the split was absolutely right,” said Werner Bahlsen in retrospect to the Handelsblatt.
Business stagnates, competitors are catching up
Sales of biscuits and cakes have grown since the split. The lofty plans to double sales from 2017 to 2025, however, have long since been buried. Now it is more about stabilizing the business. Because competitors such as oreo baker Mondelez or Nutella manufacturer Ferrero are catching up with sweet pastries.
Even before the pandemic, the German market leader for cakes and biscuits stagnated around 540 million euros. In 2018, Bahlsen even slipped into the red for a short time. Parts of the unprofitable private label business were sold.
During the Corona period, Bahlsen experienced ups and downs. “Especially in the first lockdown, consumers hoarded toilet paper and Leibniz butter biscuits,” said Werner Bahlsen in the summer. However, the Bahlsen outlets were closed for months. Customers such as Lufthansa and Deutsche Bahn were completely absent at times. Bahlsen announced in 2021 that it would cut 100 of its 2,600 jobs.
“Our industry is going through a challenging phase,” explains Verena Bahlsen. Because raw materials, packaging and transport have not only become significantly more expensive for Bahlsen. In addition to current challenges such as the enormous increases in raw material prices, Bahlsen will continue to drive the ongoing transformation, she emphasizes.
Verena Bahlsen drives innovation
The packaging of the Bahlsen brand recently appeared in a new design. This shows the biscuit in front of the dark blue Bahlsen lettering. A radical and daring step. The new design of the traditional brand should increasingly appeal to younger customers in this country, but not alienate regular customers. The core brands Leibniz and Pick-up follow. Gluten-free and vegan products are also part of the range.
Verena Bahlsen is the driver of such innovations at Bahlsen. Sustainable and healthy nutrition of the future is their topic. In Berlin she co-founded the experimental restaurant “Hermann’s” – named after her great-grandfather. As an innovation pool, this should now advance the company as a whole. In Berlin, Bahlsen also founded Kitchentown, a joint venture with an incubator from California. Here start-ups work with established companies on sustainable food innovations. Bahlsen wants to sense future trends as early as possible.
After all, founder Hermann Bahlsen was an innovator in his day. Inspired by British cakes, the merchant from Hanover made the biscuit palatable to Germans. His “Leibniz Cakes” with 52 teeth was a resounding success. The term “biscuit” found its way into the dictionary.
The visionary also invented the first carton pack that kept baked goods fresh over the long term. And in addition to the first punched card, he introduced the assembly line in Europe – eight years before Henry Ford used it in car assembly.
More: Werner Bahlsen: “If you don’t get vaccinated, you endanger your environment”