For five centuries, Beretta has been in the manufacturing business. And for most Americans, “Beretta” conjures mental images of shotguns or M9 military-issue pistols. But Beretta Holding is a considerably newer company with a vastly larger footprint that most consumers are aware of. Today, “Holding” is the world’s largest gun company with more than 50 brands under their umbrella and interests worldwide.
OWDN founder and publisher Jim Shepherd had a chance to talk with Pietro Gussalli Beretta, Chairman and CEO of Beretta Holding. The following interview has been lightly edited for clarity.
QA Outdoors
For the sake of time, let’s talk about today and moving forward. I can’t talk 500 years of history. As an American, I only have 250 years of history, you have far more historical capital.
Gussalli Beretta
You know, it’s only an anniversary to remember the people, the workers, the managers who built this company before us. That is more of an anniversary for them for us or me.
QA: But you have been there from the beginning of Beretta Holding, though. And you have done a mighty bit of building. I think it’s fair to say. You’ve grown from the idea to the latest numbers I’ve seen, $1.9 billion (in annual revenue). That’s pretty strong growth. And you have spent money to make money $79 million in capital expenditures. And you’ve grown by acquisitions.
That’s what I’d like to know more about. How do you decide what a company’s worth acquiring. When do they have the history and the production or the performance that you expect?
GB: In those last years, we acquired quite a few companies and always with different reasons. Most of the reason was related to products. Because when we founded Beretta Holding, our desire was to offer a broader range of product to satisfy our customers. Our customers are hunters, shooters, military and law enforcement. For that, we used to do in Gardone (Italy) in Fabbrica d’Armi Pietro Beretta the strategy was always to find something complimentary to our existing products.
For example, one of the first acquisitions was SAKO in Finland. That was easy to decide because for many years, we tried to make rifles inside our doors with not a lot of success. I was much younger then and felt we needed to go into the rifle business because it was complementary to us.
And then a friend of mine called me saying that the cell phone company Nokia, who used to be the owner, wanted to sell. With my brother and my father, we decided that it was perfect to create synergies so we acquired it and made it grow internationally.
That is one example, but the companies that Beretta Holding bought in the last years were for product reasons. Some other companies were acquired or developed for geographical reasons, to become stronger in some countries and to develop the commercial side with direct investments. So the products and the geographic areas are the two main reasons when we decide on acquisitions at Beretta Holding.
QA: OK, I understand the optics acquisitions gave you across lots of your platforms, and ammunition the same. The Ammotec acquisition kind of closed the circle for you.
GB: Exactly, it brought ammunition into our portfolio.
QA: But the one I wanted to ask about was Holland & Holland. Was that to preserve a tradition or a move into more of an experiential area?
GB: Yes, you know, that is a long story. But in any case, Holland & Holland, you understand, is a very small company in the Beretta Holding world…but we are, for a long time, hunters. For that, Holland & Holland made some fantastic shotguns and rifles and not just because of their names, but for the fact they do everything inside the company, even the smallest part. For that, it was completely different than what we do in the other companies.
The acquisition of Holland & Holland was really unique because it happened in the days when in Europe, and especially Italy, we were locked down for COVID. I was in my house, nobody could go around, it was a total lockdown.
A banker, a friend of mine, called me and asked if I was interested in Holland & Holland. I told him, ‘I have many other things to think about. People die every day, it’s not the best time to think about Holland & Holland.’ He said, yes, but for Beretta Holding, that would be amazing. And he insisted a little bit.
After a few days of negotiations Beretta Holding acquired Holland & Holland while we were still fully locked down at home because of COVID. But I had been there a few years before, so I knew the facilities, I knew the shooting range, I knew the product. It was easier to decide considering that I knew the company pretty well.
But the final answer to the question is we acquired Holland & Holland for their fantastic products. Even in the clothing line, it’s very elegant, very British. Something completely different than what we do in Italy or anywhere else.
Plus they have an experience side, the experiential side that most companies don’t have. They are concentrated for many, many years, always on the same products, always on the same ‘finishing’…don’t know if that’s the right word, but when they’re finishing a top gun, every detail must be finished, polished by hand and also the accuracy of the barrel. They make very small numbers of them.
They take a long time. To celebrate the acquisition, I wanted to buy a pair of double rifles…to remember the acquisition. And it was for myself, you understand. They took more than two years. They take a lot of time, but the quality is amazing.
QA: When the owner can’t get one for two years, I guess I shouldn’t feel bad if I have to wait.
GB: We are trying our best to improve such a good name, such a good product. And I don’t know if you’ve ever been in London to the shooting range of Holland & Holland. It’s a fantastic property. A property next to London…with a shooting range.
QA: That is a ‘bucket list’ item for me. But I have seen your facilities at Beretta and the little town that’s your company’s home may be the most welcoming place I’ve ever visited.
GB: Holland & Holland is completely different.
QA: Let’s talk your product mix. How did you come to the decision of the roughly 60-40 civilian versus military mix of product? Did that naturally evolve or was that more of a philosophical spreading of risk on your part?
GB: Well our tradition comes much more from the commercial side. That means the shotguns, the rifles and the pistols. That’s our background. But we’ve had for a long time a military tradition coming from the production, the manufacturing of the world wars of the twentieth century. Because in the First and Second World Wars, we were manufacturing military weapons. The tradition of the military products comes from that time. But the military was never more than twenty percent of the sales.
Now, it is much more because we increased in ammunition, in firearms, and in optics related to the opportunities in defense, because in the last 10 years, defense has increased a lot.
We have the technology in firearms, in optics and in ammunition. We are taking the opportunity that comes from that market. But the improvement comes from the historical time that we are living now.
QA: I know separation of the military versus the hunting used to be very simple, but it’s not as simple today as it used to be. Because, at least in the United States, our hunters are looking more like soldiers every day. They’re using your Burris rangefinding and Steiner optics and others on their guns, and they’re able to shoot further — but not necessarily better — unfortunately. How do you navigate the crossover between the two? The question’s geared more toward the United States market, but are you seeing the same thing in the global market as well?
GB: This is certainly something very American. Outside the United States, you don’t see it to the same extent, although you do see some influence, especially in markets that are closer to the American mentality. The European hunting style is different, of course. But in the United States, there are also many hunters who still have a more European style, hopefully. So, in that sense, there is some crossover.
I see that in the younger hunters, even in Europe. They prefer the American style. But that’s not in the ‘less younger’ group like myself. I have many friends in the States that like more the European style.
But understand that, for us, we have to satisfy everybody. The young generation is very important as well as the less younger generation that are our customers for a long time.
QA: I still hunt with a wooden gun. I believe a shotgun isn’t always meant to look like something you use to blow down a building, so I think we share that attitude.
So what’s next for Holding? Not the Beretta that Americans know, for the Holding group? Where do you see the opportunities for growth going forward?
GB: I believe you’ve seen that in Beretta Holding we believe — a lot — in improving our investments in the United States. We believe the US is an amazing country and the reputation of our group is pretty good. And for that, in this moment, I’m looking to improve the investments in the United States because I think that in both commercial and defense, there are opportunities in the U.S. For that, the U.S., in this moment, is a key point.
You have seen that Beretta Holding engaged with Ruger and I think that it is a partnership that is complementary for both. For that, I hope to work with Ruger management in the future for the growth of Ruger and Beretta Holding because I believe that there are opportunities outside the U.S. for Ruger.
QA: So how do you get to the $2 billion number? You’re close, $1.9 billion.
GB: I never expected that question. I’m in discussion to see the best opportunities to find the best opportunities in the U.S. Like I told you, we want to invest. In Dallas (editor’s note: Beretta has a highly exclusive, upscale Beretta Gallery in Highland Park Village) we believe it’s a great city and we want to be stable in Dallas. But you know, for both Holland & Holland and Beretta, it’s very important.
QA: Growth wise, the United States is in a bit of a lull. So is Europe where you’re seeing the majority of the growth opportunities, especially in the military side, especially with the NATO nations ramping up.
GB: You know Europe has many opportunities. But even outside Europe and some areas in the Middle East, Asia…there are opportunities. And there are opportunities for partnership, and for that, Beretta Holding is in discussion with a few projects in ammunition, in guns, next to the military side. But for Europe, there is opportunity in the military and defense business. But as I told you, the Middle East and Asia are also considered.
QA: Without getting granular on companies, have problems with supply chain caused any particular aggravation across the companies?
GB: All our companies are very integrated. That means the supply chain is very important, but the bigger companies know how we keep things inside and continue to invest a lot of money in our facilities.
The supply chain is important, but we want to be strong inside on the manufacturing. We believe a lot in manufacturing inside the companies. We’re one of the groups that invests a lot on new technologies. The opportunity of new technology is to have the best know-how inside.
QA: I’m the initiator of a small business. You are in a line of succession of a historic business. Give me some advice on succession. I know you, your brother and your father are running the company now. Your brother has a son working with him and you have a daughter. Is Beretta always going to have a Beretta in there or are you going to put someone else in charge one day?
GB: This, I think, is impossible to answer. Personally, I don’t know. Beretta is a family company. It’s a family group. An old family group, but with a modern mentality because it must be up-to-date all the time. For that, we are keeping the tradition, looking for the opportunities to be always up to date. For that, the family is there, ready to take the opportunity for the future, but I can’t predict the future.
QA: We’re nearly out of our time, so what have I missed? What do you want my readers to know that we haven’t already told them in our conversation?
GB: I would like, if you can, to give a picture of Beretta Holding, with the Italian roots, but international approach and looking to the future worldwide.
QA: One more thing…where are you hunting this year?
GB: Oh, this is a big question. Over the summer, in Austria, in Tyrol, next to Innsbruck because the hunting season in Samoa that is on the high mountains starts. And this the beginning of my hunting trips every year. I like to go up in the mountains for this kind of hunting. And after that, one of the best and one of my favorites, is the waterfowl. But not until October. For that, in the area of Venice, there are some fantastic places for waterfowl. I like very much to go in the autumn and winter for the waterfowl.
QA: Maybe you should come to South Dakota with us for some pheasant hunting?
GB: Oh yes, a pheasant hunt I’d do. Every year I have many invitations for pheasant hunting, mainly in England. In ’27, I’ll come to the U.S. for the, how you say it in English, the elk?
QA: Yes, elk. That’s a big deal.
GB: In 2027, I will come to the States for this.
QA: Thank you for the time.