Central Taps Ranelli as President, CEO

Less than a week after rival Spectrum Brands unveiled its succession plan for retiring United Pet Group head John Heil, Central Garden & Pet Co. of Walnut Creek, Calif., reported that John Ranelli will become Central’s president and CEO, beginning at the company’s annual shareholder meeting on Feb. 11, 2013.

John Ranelli
(publicity photo from Woolrich, 3/12)

Ranelli, a Central board member since 2010 and a member of its audit committee, will remain on the board. Bill Brown, Central’s current chairman and CEO, will continue as chairman. Central further reported that it expected Gus Halas, currently the president and CEO of Central Operating Companies, would continue in that role during the next six months while transitioning Ranelli into the CEO position, then focus on various other initiatives, such as business development and “transformational change” as Central, much like Spectrum, works to cut costs by integrating its existing brands and businesses.

"While we have considerable work yet to do, Central is a different company today than it was a year ago,” Brown said. “We are transforming Central from what was essentially a collection of over 20 operating companies into an integrated organization. We are focused on building our brands and introducing innovative new products to the marketplace. We are eliminating redundant costs and pursuing a plan to achieve significant savings over the next few years. As we begin the next phase of our transformation, John Ranelli is the right person to build on this progress and to drive the company forward so that it can meet the expectations of our customers and shareholders."

Ranelli’s appointment also comes about one month after Central reported an underwhelming fourth quarter and forecast a weaker first quarter than the year ago period. For its fiscal 2012, net profits were down 25 percent to about $21 million, despite a 4 percent increase in overall sales to $1.7 billion for its year ended Sept. 29, 2012. That modest increase came during a 53-week fiscal year, compared with a 52-week fiscal year in 2011.

“We have a great opportunity to build our brands by continuing to invest in marketing and new product innovation,” Ranelli said. “I am confident that as we strengthen our customer relationships, develop stronger ties with the consumer and continue to improve our execution, we will deliver the sustainable, profitable growth that we expect of our company and create meaningful value for our shareholders.”

Halas had been named president and CEO of Central Operating Companies in April 2011.

"Our fourth quarter bottom line was impacted by several factors, including declines in our décor business, higher marketing and innovation expenditures, and investments related to our transformation,” Halas said in December when announcing the financial results. “With the first year of the transformation behind us and much work still to do, we remain committed to delivering a more integrated company which delivers greater innovation and value to our customers and improved profitability to our shareholders."

Ranelli previously served as CEO of Mikasa Inc., FGX International (FosterGrant) and outdoor clothing company Woolrich Inc. He’s also held executive positions with The Timberland Company, Stride Rite Corporation, Deckers Outdoor Corp., and TLC Beatrice and served on the boards of GNC, Deckers, Party City, and Woolrich. He remains on the Woolrich board as non-executive chairman. 

Ranelli will receive an annual salary of $673,000 and be eligible for a performance bonus of up to 75 percent of his base pay. He also receives stock options worth $1 million, vesting over five years. (This last paragraph added on January 10, 2013, at 6:22 p.m. PST.)