Dive Brief:
- JBS, the world's largest meatpacker, said it has named Wesley Batista Filho its next CEO, capping a return to power for the embattled founding family nearly a decade after a corruption scandal.
- Batista Filho will become global CEO in January 2027. Current chief executive Gilberto Tomazoni will step down after eight years in the role, transitioning to vice chairman of the board and senior adviser.
- The new appointment comes after JBS reported a surprise net loss in the second quarter as it struggles with higher prices and a shortage of cattle within its U.S. beef business.
Dive Insight:
Control of JBS is returning to the founding Batista family for the first time since brothers Wesley and Joesley were imprisoned in Brazil for their role in a 2017 political scandal, which involved paying off almost 2,000 politicians for government contracts and cheap financing.
The brothers were reinstated to the board in 2024, with Wesley taking over as head of North America the year prior. Tomazoni, who was the first CEO outside the Batista family, said Wesley's work in the U.S. will help guide the company through its next chapter.
"Wesley has a track record of success at JBS and knows our business deeply," Tomazoni said in a statement. "He understands our business, our culture and our people, and I believe he will continue building on our strong foundation while leading the Company to new opportunities for growth and value creation."
JBS reported a $102 million net loss for the second quarter despite record revenue due to nonrecurring expenses including an antitrust settlement. The meat giant's U.S. business has also struggled as higher costs from an ongoing cattle shortage eat into JBS' bottom line.
The company in June reshuffled its U.S. manufacturing network to slow losses from beef and invest in more profitable areas like chicken, which more consumers are turning to as a cheaper protein option. JBS closed two beef plants while investing $75 million in Pilgrims Pride.
"As we look forward, my focus remains the same: operational excellence, disciplined capital allocation, customer service and creating long-term value across our diversified global platform," Wesley said in an earnings call following the CEO appointment.
