A new pizza concept and a new pizza acquisition demanded a bold new strategy at Bernatello's Foods. But jettison the very brand name — Bernatello — that made the company's frozen pizzas a hit in the Twin Cities?
"It was a huge deal, a decision not made lightly," said Dave Ramsay, an owner and vice president at Maple Lake-based Bernatello's. "I worked for about three-quarters of my career pushing the Bernatello's brand. But you can't make the decision with your heart."
So within the past year, the company has been phasing out the Bernatello's pizza brand in favor of a new premium offering — cheese-and-meat-packed Brew Pub — and a brand picked up with the acquisition last year of Wisconsin-based Five Star Foods.
The strategy has worked, with the new brands more than compensating for market share lost by the Bernatello brand, Ramsay said. And Bernatello's continues bucking the pizza industry trend of flat or declining sales in recent years.
"We have had very sustainable and manageable growth for the last 10 years," Ramsay said, with sales rising 10 percent annually on average. The company now has more than $80 million in yearly revenue.
Bernatello's has its roots in Bud's Pizza, a business created in the 1970s at an Annandale tavern. In 1982, Bill Ramsay, erstwhile CEO of the big ice cream maker Marigold Foods, bought a 50 percent share in Bud's and changed its name to Bernatello's. (Bernie Garthe had been Bud's founder — add Italian flavoring to his first name and a brand was born).
Bill Ramsay is still CEO, and his children Dave and J.J. Halverson are both owners and top executives. The company's corporate name remains Bernatello's Foods.
In 1985, Bernatello's established its main plant in Maple Lake, a Wright County town close to Annandale, and later added production facilities in Wisconsin. Today, it employs about 400, including 150 in Maple Lake. Bernatello's primary market is the Upper Midwest.