There is no doubt that Abilio Diniz He was one of those most responsible for the construction of Brazilian retail. Upon taking command of the Sugar Loaffounded by his father, Valentim dos Santos Diniz (1913 – 2008), transformed the company into the largest supermarket chain in the country – a position currently occupied by the Carrefour Group. Diniz passed away on the 18th, as a result of pneumonitis, and left a legacy for the market and consumers in Brazil.
Not only did he command Pão de Açúcar, he was also responsible for the major transformations that shaped the company and the Brazilian retail market. He led the organization’s IPO, formed partnerships that brought foreign investment to the business, acquired and invested in companies. Passionate about sports and his favorite team, São Paulo Futebol Clube, he did not leave human beings aside in the most challenging moments of his career.
“I hate sacrifices. I always say this”, stated Diniz in the prologue of the reissue of his book “New Paths, New Choices” (Objetiva, 2016). “Life must be lived with joy. With will, determination and a minimum of discipline, you can get much more out of your body than you imagine — and for much longer. And the head, how far can it go? I don’t know. I know there are limits, but I like to always be close to them and push them further.”
Abilio Diniz’s trajectory
Born on December 28, 1936, he was the firstborn of six children of the entrepreneur Valentim. His career at Pão de Açúcar began in 1959, when he worked with his father in the chain’s first supermarket, in 1959, opened in the capital of São Paulo more than ten years after the opening of Doceria Pão de Açúcar, also owned by the family. Abilio Diniz graduated in Administration from Fundação Getúlio Vargas (FGV) and did internships in the United States and France, working in supermarkets.
Six years later, the supermarket was already the leader as the largest retail chain in Brazil. When Abilio returned to Brazil, the number of stores had already multiplied and, in addition, the company had acquired units from the first self-service chain in the country, the Browse. During this period of growth, the company launched a series of innovations in the Brazilian market. In 1969, he launched the first 24-hour supermarket in Brazil and, in 1971, created the Jumbo network – which would later become the Extra network –, the first hypermarket in the country. Years later, in 1995, he created the first supermarket delivery servicewith delivery time of up to 24 hours.
In 1993, Pão de Açúcar created the so-called ombudsman in Brazilian retailwhich later evolved into the Customer House – area dedicated to serving and resolving the demands of the network’s customers, functioning as a representation of the consumer’s voice in the company’s different actions – in 2022.
In 1989, Abilio Diniz was the victim of a kidnapping that was notable among the Brazilian business community. After 153 hours in captivity, he was rescued and released on election day – the same elections that would elect Fernando Collor as President of the Republic.
During the crisis generated by Collor Plan In the 1990s, which confiscated Brazilians’ savings, Pão de Açúcar also suffered a serious impact. In addition to laying off more than 20,000 employees, the company had to sell properties and close points of sale.
It was also in the 1990s that the brothers and mother entered into a family conflict over control of Pão de Açúcar. The father, Valentim, distributed shares in the business among his children in different proportions according to their contributions to the company. Abilio, who ran the company, continued with the largest stake, which was contested by the family. It was only in 1994 that the friction was resolved: three of the brothers sold their fractions to Abilio, Lucília, and the youngest, Lucília, remained in the company.
Solid leadership
It was with this full leadership that Abilio was able to put his business decisions into practice. In 1995, he commanded the IPO of Pão de Açúcar. Subsequently, he sought a company abroad to further boost the company – an action that took effect in 1999, when the French chain Casino acquired a 25% stake in Pão de Açúcar. In 2005, Abilio went further and sold controlling interest to Casino with the aim of raising more capital to pay off the group’s debts, but remained in charge.
In 2009, acquire a Casas Bahia and the Cold spotforming the group Via Varejo, the largest distribution group in Latin America. In 2011, he saw an opportunity in a business with Carrefour, one of the main competitors of Pão de Açúcar and the parent company Casino. Thus, he tried to break the agreement with the French woman. But he ended up signing an agreement in 2013 in which he gave up his seat on the Board of Directors of Pão de Açúcar, handing over control of both the group and Via Varejo to Casino.
In 2013, he held the position of President of the Council of BRF, in addition to buying shares in the animal protein company. However, after a series of losses and Operation Carne Fraca, by the Federal Police – which investigated the illegal sale of meat by Brazilian meatpackers –, he left the company in 2018.
In another twist, the Klein family – owner of Casas Bahia – argued that the company’s valuation at the time of acquisition by Abilio was not adequate. In 2019, Grupo Pão de Açúcar’s shares in Via Varejo were sold in an auction held by B3 and repurchased by the Klein family.
Family business
Even far from the companies of which he contributed to the construction and growth, he served as president of the Board of Directors of Península Participações, a family investment company created in 2006 by Abilio himself. It was through the manager that the businessman and entrepreneur started to buy shares in Carrefour – a company in which he saw great opportunities even in the days of GPA. The vision was such that Abilio became one of the main global shareholders of the French retailer, occupying seats on the Board of Directors of the Brazilian operation and also of the headquarters.
Abilio Diniz was the father of six children: Ana Maria, Pedro Paulo, João Paulo and Adriana – from his first marriage, with Maria Auriluce Falleiros – and Rafaela and Miguel – from his second marriage with economist Geyze Marchesi. His son, João Paulo Diniz, passed away in 2022 after a sudden illness, at the age of 58, a tragedy in the family that left his father with deep regret. In addition to his children and wife, he left grandchildren and great-grandchildren.
For his admirers, there is no shortage of inspiration, reflection and learning from the life and challenges of one of Brazil’s greatest businessmen. Abilio Diniz was not only a manager – who got things right, made mistakes and managed to raise the bar in Brazilian retail – but also an entrepreneur, a passionate sportsman and a man who helped pave the country’s market.