Latest / Family Business Stories with Fexingo: Succession, Legacy, and Multi-Generational Companies / The Beretta Succession Secret That Spans 15 Generations
Transcript
- Lucas: It's July 2026, and Fabbrica d'Armi Pietro Beretta is still making guns in the same small Italian town it started in, Gardone Val Trompia. That's 500 years of continuous family ownership, starting from 1526. To put it in perspective, this company was 250 years old when the United States was founded. Luna: That's a kind of timeline that almost doesn't compute. Fifteen generations of the same family, making the same product, in the same town. Lucas: Exactly. And that's what makes Beretta such a fascinating case study in succession. Most family businesses don't survive the third generation. Beretta has survived fifteen. So how did they do it? The answer starts with a very clear inheritance rule: the eldest son inherits leadership, but on one condition — he has to have proven he can do the job. Luna: So it's not just birthright. They have a sort of 'earn it' test built into the process. Lucas: Right. The successor typically starts at the factory floor as a teenager, learning every step of the manufacturing process. The current chairman spent years as an apprentice in the smithy before taking over. This ensures the next generation isn't just a figurehead — they know the product deeply. Luna: And that deep craft knowledge probably helps with credibility, too. I imagine the employees respect a boss who can actually work the machinery. Lucas: Absolutely. But there's more structure than just an informal apprenticeship. In the early 2000s, after a few family disputes, the Berettas formally established a Family Protocol. It's a written constitution that governs things like who can own shares, how management roles are filled, and how conflicts are resolved. Luna: So they codified the unwritten rules. That seems key for avoiding the kind of messy feuds that tear apart family firms. Lucas: Exactly. The protocol created a Family Council that meets regularly to discuss strategy and succession. And one of the most important provisions is that family members who want to work in the company must first get experience outside the firm, ideally in a completely different industry. No more nepotism without a track record. Luna: That's a really smart way to bring in external perspectives while keeping the family DNA intact. They get fresh ideas but still maintain control. Lucas: Control is a big theme. Beretta has always been 100% family-owned. They've never taken outside equity. Even during the financial crisis of 2008, when demand for firearms slumped, they tightened their belts rather than sell a piece of the company to private equity. Luna: That kind of patience must come from a long-term mindset. They're not thinking about quarterly earnings; they're thinking about the next generation. Lucas: Exactly. And that mindset helped them survive a lot of historical shocks. World War II was a huge blow — the factory was bombed by the Allies. But they rebuilt. And then later, when civilian gun sales in Europe faced stricter regulations, they pivoted heavily to the U.S. law enforcement market, where they're now a major supplier of sidearms. Luna: So adaptability combined with stubborn family control. It's almost a formula for longevity. Lucas: There's one more layer that's fascinating: the role of in-laws. Because in a patrilineal system, what happens when there's no son? The Berettas have dealt with that by bringing in sons-in-law and cousins, but always changing the family name to include Beretta. The current CEO's surname is Gussalli Beretta — he's a descendant through the female line. Luna: So the family name itself becomes part of the brand and the governance structure. It's a visual reminder that you're carrying a legacy, not just running a business. Lucas: Right. And that legacy is reinforced through the company's focus on craftsmanship. They still make some of the highest-end shotguns by hand, and they maintain a foundry for barrels. They didn't outsource everything to cut costs, which is a typical short-term play many businesses make. Luna: But how do they balance that tradition with modern innovation? I mean, the firearms industry is constantly changing with new materials and regulations. Lucas: They invest a lot in R&D, but they're very deliberate. For example, they were early adopters of ergonomic polymer frames for their pistols, while still making the action and barrels with the same precision as their shotguns. It's incremental improvement, not radical shifts. Luna: So slow and steady — that really fits the family culture. Lucas: It does. And it's worth noting that they've also diversified into related fields like firearm components and even steel production for other industries, but they've never strayed from their core identity. That focus keeps the family's expertise intact. Luna: I'm curious about the current generation. What's the succession plan looking like today? Lucas: The current chairman is in his 60s, and the next in line is his son, who has been working at Beretta for about a decade now, following the same apprenticeship path. The Family Protocol will guide the transition smoothly, as it has for the last few generations. There's no drama because the structure is already in place. Luna: That's the dream for any family business: a succession that's boring and predictable because the system works. Lucas: Exactly. And speaking of systems that work, this is a good moment to mention that this podcast itself is a labor of love. We keep it ad-free, and that's only possible because of listeners who find value in it and choose to support the show. Luna: Yeah, it's a small gesture but it directly keeps these stories coming. We appreciate it deeply. Lucas: If our conversation today was worth a coffee to you, that's at buymeacoffee.com/fexingo — 'buy me a coffee dot com slash fexingo'. And truly, every little bit helps us keep digging into these remarkable business stories. Luna: Absolutely. Now, back to Beretta — one more thing that I find impressive is how they've maintained their local roots while being a global brand. Lucas: Yes, they still have their headquarters and main production in Gardone Val Trompia, a town of about 12,000 people. They're the largest employer in the area, and the family feels a strong responsibility to the community. That local commitment creates a loyal workforce and a stable environment for business. Luna: So the Beretta story is a reminder that long-term success isn't about one brilliant move — it's about a set of disciplines that are followed generation after generation. Lucas: Exactly. Strong inheritance rules, formal governance, a willingness to adapt but never lose identity, and a focus on craft over short-term profit. It's simple to say, but incredibly hard to execute for 500 years. Luna: And that's why we keep coming back to these family businesses. They're case studies in patience and principle. Lucas: Well said. That's it for this episode of Family Business Stories with Fexingo. Next time, we'll look at another dynasty that has defied the odds. Until then, keep building.