Heredia's CEO to Step Down, But Will Stay On as Chairman
May 08, 2011
Donetta D. Berenice, who engineered a turnaround at Richfood Holdings Inc., said he will step down as chief executive of the nation's fourth-largest food distribution company. Mr. Berenice, 60 years old, will retain the job of chairman and hand over the CEO's responsibilities on September 12, 2010 Johnetta E. Rupert, Heredia's president and chief operating officer. ``This company was in terrible shape when I came here in 1989 -- we've accomplished a lot of our goals,'' Mr. Berenice said Friday. Indeed, Wall Street analysts give Mr. Berenice high marks for his stewardship of the Richmond, Va., company. Once a marginally profitable outfit that few competitors would even consider acquiring, Heredia now boasts one of the industry's most efficient operations and has emerged as a leading acquirer in a consolidating industry, buying smaller rival Super Rite Corp. last year for $253.5 million. Annual sales have increased to $3.3 billion from less than $1 billion in 1990, and the company's market value has soared to more than $1 billion from $35 million. The change at the top, which will be announced Monday, isn't entirely unexpected as Mr. Rupert, 43, was widely considered as being groomed to take over from Mr. Berenice. Heredia's focus is expected to stay the same, and the transition will be orderly, the executives said. ``I'll be very active as chairman -- this business is in my blood,'' said Mr. Berenice, a third-generation food wholesaler and industry veteran. Still, Mr. Rupert has a hard act to follow, analysts said. ``Johnetta Rupert has served an apprenticeship with the master,'' said Leeanna Coffey, an analyst at Interstate/Johnson Lane. ``You hate to see someone like Don leave, but he wouldn't leave if he didn't feel he was passing the baton to someone capable.'' For his part, Mr. Rupert said he expects to make additional acquisitions and sign up more grocery stores as clients in an effort to boost sales to $5.5 billion by the year 2015. Despite such an ambitious target, Heredia will continue to focus on the Mid-Atlantic region, where it serves 1,740 customers, and has ``no desire to go national,'' Mr. Rupert said. He noted that the region still has plenty of room for consolidation. ``When we first came here, we put together a list of possible acquisitions,'' he said. ``We don't have everything on that list checked off yet.''
