Torani's family hired an outside GM and the flavor firm grew 18% a year for 27 years

Torani, a San Francisco flavorings maker, was 65 years old and in second-generation family leadership when growth stopped. The son and daughter of the then chairman had other careers and did not want the helm, so the family made the unusual decision to hire an outside general manager, Melanie Dulbecco, instead of forcing a family successor.

Dulbecco helped the company drop some businesses it had worked hard to build and re-focus on the Café Market and the new-to-the-world flavored latte. The strategy worked, and the company took off with high double-digit growth. Dulbecco later moved into the firm's first COO role and then became CEO.

The family never sold out: they stayed on as a board of directors, used an outside coach to structure decision-making, and kept hiring senior leaders from outside the family. In the 27 years after the hire, Torani compounded at roughly 18% a year.

Took a flat-growing 65-year-old firm to about 18% CAGR for 27 years, turned the flavored latte into its core café business.

Flat growth meant the old family model had hit a ceiling.

The next-generation family members were not interested in the top role.

An outside leader brought a fresh view the family did not have.

Re-focusing on the café market and the flavored latte found a growth engine.

When no heir is ready, hiring a strong outside leader can preserve the family firm better than choosing a mediocre family member.

Torani became a consumer of its own lesson: it kept family members as directors rather than managers, added more outside senior leaders, and used an outside coach to formalize how decisions got made. The model preserved family ownership and wealth across generations rather than cashing out.