Federico Balestra Of Sabatino On 5 Things You Need To Run A Highly Successful Family Business
An Interview With Jason Hartman
Lead by example and empathize with your employees. As a CEO, it’s crucial to understand their perspective and demonstrate your willingness to get involved in all aspects of the business, from driving a forklift to collaborating on tasks. Show them that you’re willing to work alongside them and support their efforts to thrive.
As a part of our series about 5 Things You Need To Run A Highly Successful Family Business, I had the pleasure of interviewing Federico Balestra.
Federico Balestra is the CEO of Sabatino, a global truffle company based in Umbria, Italy and West Haven, Connecticut. Since taking the helm as CEO in 2005, Federico, grandson of original founder Sabatino Balestra, has propelled Sabatino from its deep family roots in Umbria to an ever changing and contemporary worldwide presence.
Beyond innovation, Federico spearheaded the recent launch of The Truffle Family, a new brand identity that honors Sabatino’s rich family history while embracing its global consumer base. His dedication to sustainability has also driven Sabatino’s expanding environmental, social, and governance efforts.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?
Truffles have always been a part of my family’s legacy, making it a natural progression for me to step into the family business. With my own deep-rooted passion for food, it almost feels like I was destined for this path — my earliest memories involve the aroma of truffles.
Following my studies at La Sapienza in Rome, Italy, where I pursued a degree in Business Administration, I started with Sabatino in 1996 as the sales manager. Over the years, my dedication and commitment to the industry led to my appointment as CEO in 2005. This position allows me to further contribute to my family’s rich heritage while steering the company towards growth and continued success.
Can you tell us a bit about your family business and your role in it?
Sabatino is the original truffle family. Established in 1911 in Umbria, Italy, we are truffle experts. Our world-class truffle products and solutions are sold around the world to chefs, manufacturers, and consumers. Headquartered in West Haven, CT, we are proud to be the largest purveyor of truffles in the world.
The story of Sabatino — my family business — began in 1911 when my family opened a cozy story in the heart of Umbria, Italy. It’s here that the adventure of Sabatino and Giuseppina Balestra began. Our family embarked on a quest, unearthing truffles and crafting high-quality truffle products for everyone to savor. Today, Sabatino has manufacturing plants in Umbria, Italy and West Haven, CT, along with various offices located throughout the world in Europe, Asia, and the United States.
With more than 20 years of experience in the truffle industry, I help drive the company’s growth and success. Since I became the CEO in 2005, we have expanded the company’s product portfolio to include a wide range of new products like Truffle Salt, Truffle Zest, Truffle crisps, just to name a few, catering to the growing demand for truffles globally. As The Truffle Family, I have been exploring every possible way to source, harness, and savor these incredible gifts from the earth.
Can you share the most interesting story that happened to you since you began this career?
I have had the privilege of experiencing so many memorable moments throughout my career. However, one fun story remains ingrained in my memory. I received an unexpected call from Greece, claiming they had stumbled upon a treasure trove of truffles. Intrigued, they flew me over to verify their discovery. Picture my surprise when, upon opening the warehouse doors, instead of the anticipated aroma of truffles, we were greeted by the sight of flower bulbs! The mix-up was both amusing and unexpected, and I couldn’t help but share a hearty laugh about it afterward. It’s moments like these that remind me of the unpredictable nature of our industry and the joy that comes from embracing the unexpected.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
A common mistake is buying truffles from truffle hunters — it’s like thinking you’ve found a rare diamond, but then realizing it’s just a rock. With more experience, you figure out how to pick the good stuff. Usually, it’s when you’re short on cash that you learn the most!
What do you think makes your company stand out? Can you share a story?
Sabatino stands out because we are the global authority on truffles and have more than 110 years of truffle expertise. We source the highest-quality truffles from Umbria and around the world. Furthermore, we know the conditions in which truffles thrive, and we are always looking for new and innovative places to source them. We also control the entire supply chain having manufacturing plants in Italy and the USA, so we know where exactly every truffle comes from and every truffle product.
Are you working on any exciting new projects now? How do you think that will help people?
We are launching a new store concept opening later this year with more details coming soon. You should definitely follow us on Instagram for more updates. Our aim is to make truffles accessible to all, but our vision extends beyond truffles alone. I recently spearheaded the evolution our brand Sabatino Tartufi to simply Sabatino (dropping Tartufi). Our goal is to provide not just truffles, but a culinary lifestyle experience. This move represents an exciting new chapter for us.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
I am thankful for many, from family to employees who have been working at Sabatino for decades. But my sister, my partner through thick and thin, deserves special mention. She oversees our operations in Italy and has stood by me in both happy and challenging times.
How have you used your success to bring goodness to the world?
One of our main goals at Sabatino is to make truffles available to everyone and not just a delicacy. With Sabatino’s product innovations like truffle zest and truffle salt, we have made truffle experiences accessible to all and a household pantry staple.
I am also spearheading our sustainability strategy, which is multi-faceted and includes a tree planting program, the use of sustainable packaging and a zero-waste strategy from our operations. Our drive toward a more sustainable future is critical for future generations of truffle lovers. Each year we see how global climate change’s effects are transforming our industry. Our truffle plantations located in Umbria, Italy mimic natural truffle habitats and offer a controlled environment for truffles and our “light harvesting” minimize the negative impacts that can be associated with broadcast harvesting.
Ok thank you for that. Let’s now pivot to the main parts of our interview. How do you define a family business? How is a family business different from a regular business?
A family business is one that’s owned and operated by a family, prioritizing product quality and the well-being of its employees over solely financial gains. In contrast, non-family businesses do not have a solid foundation of family values to guide them while navigating profit and loss.
In your opinion or experience, what are the unique advantages that family-owned businesses have?
The unique advantages of a family-owned business are many and great. For example, we have more than 110 years of truffle experience and everything remains in one family with history being passed down to each generation. We still maintain our original production site in Montecastrilli, Umbria, Italy and employ our timeless, proven methods to source the truffles. Moreover, we know the conditions that truffles need to thrive. We also control the entire supply chain, so we know exactly where every truffle comes from.
What are the unique drawbacks or blind spots that family-owned businesses have?
Family-owned businesses often proceed with caution when it comes to expanding and investing in capital expenditure. They tend to be more cautious compared to financially driven businesses that may be more inclined to take risks.
What are some of the common mistakes you have seen family businesses make? What would you recommend to avoid those errors?
One common mistake is restricting family members to only working within the family business. I recommend sending the next generation, the children of the family business, to gain experience in larger corporations to understand broader organizational dynamics before returning to work on the family business.
What advice would you give to other CEOs or founders of family businesses to help their employees to thrive?
Lead by example and empathize with your employees. As a CEO, it’s crucial to understand their perspective and demonstrate your willingness to get involved in all aspects of the business, from driving a forklift to collaborating on tasks. Show them that you’re willing to work alongside them and support their efforts to thrive.
How do you define “Leadership”? Can you explain what you mean with a story or example?
Leadership, to me, involves inspiring and motivating people to believe in a common vision rather than simply giving orders.
Here is our main question. What are the “5 Things You Need to Run a Highly Successful Family Business”? Please share a story or example for each.
Determination:
Example: Despite facing challenges and setbacks, I remain determined to uphold our family legacy and expand our business. This determination led to the introduction of new products and the establishment of a new store concept opening later this year.
Realize you can be wrong — listen and learn even if you are the CEO:
Example: Even though I possess considerable expertise in the truffle industry, I remain receptive to unexpected experiences, demonstrating humility and a readiness to listen and evolve.
Define one leader — one person needs to be in charge:
Example: As the CEO of our family business, I believe in the importance of having one leader in charge. Despite being a family-owned business, I take the helm and lead our company’s growth and success, ensuring clear direction and decision-making.
Transparency:
Example: At our company, we control the entire supply chain and know exactly where every truffle comes from. This transparency instills trust among our customers and stakeholders, as they are reassured of the authenticity and quality of our products.
Trust:
Example: Trust is paramount in our organization. I believe in trusting our employees and empowering them to thrive. By demonstrating empathy, leading by example, and involving myself in various aspects of the business, I foster a culture of trust within our organization, which is essential for success in a family business.
We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why? He or she might just see this if we tag them 😊
Warren Buffett is my guru. I also admire Sergio Marchionne for his work at Chrysler, even though he’s passed away. If I could, I’d love to meet him in another life.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
Encourage everyone to spend a year living outside their native country. This experience fosters compassion, deepens cultural understanding, and cultivates a greater appreciation for home, family, and community.
How can our readers further follow your work online?
Even after 110 years, our truffle journey is merely beginning, and we wholeheartedly invite you to join us. Follow our truffle journey online at SABATINOTRUFFLES.COM or through our social media for more behind-the-scenes of what is going in our truffle world at INSTAGRAM — FACEBOOK — LINKEDIN
Thank you so much for joining us. This was very inspirational.
About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.
Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.
While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.
