Changing of the guard at Tönnies in exciting times

The transfer of power from father Clemens (68) to son Maximilian (34) is gradual, but it is becoming increasingly clear that the new generation is taking over the reins. This became clear this week when not Clemens but Maximilian gave an interview in the prestigious Süddeutsche Zeitung. A signal that the son is taking over his father's figurehead role. In the interview he was quite critical of the German agricultural policy, which according to him has forced many pig farmers to stop. A few years ago, 1 million pigs were still being slaughtered every week, now this is 'only' 700.000. At Tönnies they think that the bottom has now been reached, although the wish is probably the father of the thought.

Distinctive leader
Clemens Tönnies' footsteps are big to fill. He is a remarkable person. The German media likes to portray him as the meat baron or cutlet emperor who became rich on the backs of farmers. In the past, he maintained close ties with Vladimir Putin, and he once even called the Russian leader a personal friend. The day after the Russian invasion, the German media were quick to ask him for a reaction to the war. Initially, he did not want to comment. Later, he did respond and spoke of a war of destruction that he condemned in the strongest possible terms. At one time, Tönnies wanted to build the largest pig slaughterhouse in Russia, but those plans never got off the ground. Even before the war, the meat company withdrew from Russian soil. Whether Tönnies and Putin still on speaking terms are, is not known. 

Family feud
Although Clemens Tönnies is always seen as the great leader of Europe's largest meat company, he shares the shares with his cousin Robert, who is much less visible in the media. Robert is a descendant of Clemens' older brother Bernd, who died in 1994. In the past, there was a visible power struggle between the two. "Where one wants to go left, the other goes straight ahead," German media typically wrote. In 2017, the hatchet was buried, but barely two years later the bomb had burst again. Robert believed he was entitled to a majority stake of 55%. He insisted on the sale of the German meat company, which was said to be worth €4 billion, but Clemens was completely against it. In 2021, the hatchet was buried for good. In addition to the decision not to sell the company, it was also vowed that everyone was on the same page again. 

In recent years, there has been no public disagreement. The company's shares are currently owned 50% by Robert Tönnies and 45% by Clemens, while Maximilian owns 5%. Incidentally, the Tönnies families did not have to sell the meat company for the money. Clemens and Robert Tönnies are both listed in the Forbes list of the richest people on earth. Together, the gentlemen are good for a net worth of around €3 billion. 

Posing in overalls
Still, the proud Clemens Tönnies is not too bad to pose in overalls in a random German pigsty. He probably realizes better than anyone that he cannot do without pig farmers. After all, empty slaughter hooks mean no turnover. And he does not see much in plant-based 'meat'. He did experiment with it in 2015, but stopped again just like that. He found meat substitutes fake and also not tasty, was his ironic comment. In the meantime, Tönnies has changed his mind about this strategy. Later, the plant-based sausage production was restarted at subsidiaries. 

cultured meat
Maximilian says in the interview that Tönnies recently also invested in a start-up for cultured meat. Although the meat company still relies heavily on pork, its activities are indeed being expanded. From a business perspective, these are understandable choices, with the rapidly shrinking meat consumption and pork supply in Germany, which makes the financially strong company vulnerable. It is up to the new generation to deal with these challenges.