You’ve probably eaten products by Giovanni Ferrero such as Nutella, Tic Tac, Mon Chéri and Kinder, but who is this man and how did Nutella come to be?
Nutella isn’t just a chocolate-hazelnut spread; it’s a worldwide sensation loved by millions. People spread it on toast, crepes, waffles, pancakes, and even eat it straight from the jar. How did this sweet delight become one of the most successful confectionery products ever? And who’s the genius behind it?
Meet Giovanni Ferrero, a 55-year-old billionaire who inherited and expanded the Ferrero Group, the world’s second-largest chocolatier. Ferrero is behind beloved brands like Nutella, Ferrero Rocher, Tic Tac, Kinder, and Butterfinger. As of July 2023, he’s Italy’s richest man, with a whopping $39 billion net worth
The Story Behind Nutella
Nutella has a fascinating history that began in 1946, when a visionary chocolatier named Pietro Ferrero opened a small shop in Alba, a picturesque town in the Piedmont region of Italy. In the aftermath of World War II, chocolate was a rare and costly luxury that few people could afford. Pietro had a brilliant idea: he used the local hazelnuts, which were plentiful and inexpensive, to create a creamy and delicious paste that he called Giandujot. He shaped it into loaves and wrapped them in shiny foil, making them look like precious gifts.
Pietro’s son, Michele, inherited his father’s passion and talent for chocolate making. He joined the family business in 1949 and refined the Giandujot formula by adding vegetable oil, which made it easier to spread on bread or toast. He gave it a new name: Supercrema, and promoted it as a nutritious and energizing breakfast for children.
In 1964, Michele introduced a revolutionary product that would change the world of confectionery: Nutella. The name was a clever combination of “nut” and “ella”, an Italian suffix that means “sweet”. Nutella was a smooth and velvety chocolate-hazelnut spread that captivated the taste buds of Italians and soon became a national sensation. It didn’t take long for Nutella to conquer other European markets as well. By 1973, Nutella was available in more than 20 countries around the world, spreading joy and sweetness to millions of people.
Giovanni Ferrero Early Life
Giovanni Ferrero, born in 1964, grew up surrounded by luxury. He joined the family business after studying marketing and tried his hand at Tic Tac in Belgium and Kinder in Germany. Alongside his corporate journey, Giovanni developed a passion for writing novels and published his first book in 1999.
The Entry of the Ferrero Brothers in the Family Business
When Michele Ferrero, the founder of the Ferrero Group, handed over the reins of his chocolate empire to his sons in 1997, he entrusted them with a formidable mission: to uphold his legacy of excellence, creativity, and social impact. Pietro and Giovanni Ferrero, the joint chief executives, rose to the challenge with passion and vision. They leveraged their complementary personalities and skills: Pietro was a charismatic leader and a marketing genius, while Giovanni was a strategic thinker and a product innovator.
Together, they embarked on an ambitious expansion plan that took their company to new heights. They introduced new products that delighted consumers around the world, such as Kinder Bueno, Kinder Surprise, and Raffaello. They also penetrated new markets with huge potential, such as China, India, and Russia.
The Ferrero brothers did not shy away from the obstacles they encountered in their journey. They faced fierce competition from low-cost rivals, volatile prices of raw materials, and shifting consumer demands for healthier options. They also tackled environmental and ethical concerns such as palm oil sustainability and child labor prevention. Through their resilience and ingenuity, they increased their sales from $4 billion in 1997 to $11 billion in 2011. They also preserved their profitability and independence by avoiding debt and acquisitions.
Giovanni Ferrero Taking the Wheel
In April 2011, tragedy struck when Pietro died of a heart attack while cycling in South Africa. He was only 47 years old. Giovanni was devastated by the loss of his brother and best friend. He had to take over the sole responsibility of running the company that his brother had helped him build.
Giovanni faced another blow when his father Michele died in February 2015 at age 89. Michele had been the chairman and the patriarch of the Ferrero family. He had also been the mentor and the inspiration for Giovanni. His death left Giovanni as the sole heir and the guardian of his legacy.
Giovanni decided to honor his father’s memory by continuing his work and pursuing his vision. He also decided to make some changes in his strategy and structure. He appointed Lapo Civiletti, a longtime Ferrero executive, as CEO in 2017, while he became executive chairman. He also started to pursue acquisitions to boost his revenues and market share.
In 2015, he bought the British chocolatier Thorntons for $170 million. It was Ferrero’s first branded acquisition ever. In 2017, he bought the U.S. confectionery company Fannie May for $115 million. And in 2018, he made his biggest purchase yet: Nestlé’s U.S. candy business for $2.8 billion. The deal gave him iconic brands such as Butterfinger, BabyRuth, Crunch, and Nerds.
Giovanni’s acquisitions have increased his sales from $12.5 billion in 2018 to $13.9 billion in 2019. They have also increased his net worth from $23 billion in 2018 to $32 billion in 2020 and $39 Billion in 2023. He is now the undisputed leader of the Ferrero Group and the Nutella empire.
Giovanni Ferrero yacht
One of the ways he enjoys his fortune is by owning a luxurious superyacht called Moneikos. Moneikos is a 62-meter (203-foot) vessel that was built by Codecasa in 2006 for $40 million. It has a steel hull and an aluminum superstructure, with large rectangular windows and dark strips that give it a distinctive look.
The interior of Moneikos is designed by Anna Dellarole of Della Role Design, who created a minimalistic and zen-like atmosphere with dark African wenge wood for the floors and light maple wood for the walls. The yacht has five decks, with a spacious owner’s suite and a main dining room on the upper deck, and a gym with sliding doors that open to a sunbathing area and a swimming pool with a continuous-flow generator on the sundeck.
Frequently Asked Questions
Here are some of the most frequently asked questions about Giovanni Ferrero and Nutella:
- How many jars of Nutella are sold every year?
According to Ferrero, more than 365 million kilograms of Nutella are sold every year in over 160 countries. That’s equivalent to more than one billion jars.
- How does Giovanni Ferrero spend his fortune?
Giovanni Ferrero lives a relatively modest and private life compared to other billionaires. He owns a villa in Brussels, where he moved with his wife Paola and their two sons Pietro and Giovanni Jr. in 2009. He also owns a penthouse in Monte Carlo and a yacht named Ambrosia. He is a philanthropist who supports various causes such as education, health, and culture. He is also a novelist who has published six books so far.
- What are the main ingredients of Nutella?
According to Nutella’s website, the main ingredients of Nutella are sugar, palm oil, hazelnuts, skim milk powder, cocoa, lecithin, and vanillin. The exact recipe is a closely guarded secret that only a few people know.
- Is Nutella healthy or unhealthy?
Nutella is a high-calorie and high-fat product that contains about 21 grams of sugar and 12 grams of fat per serving (two tablespoons). It also contains palm oil, which has been linked to deforestation and health risks. Therefore, Nutella should be consumed in moderation as part of a balanced diet.
Conclusion
Giovanni Ferrero is the man who turned Nutella into a $39 billion empire. He inherited a family business that was founded by his grandfather and expanded by his father and brother. He faced personal and professional challenges that tested his resilience and leadership. He also made strategic decisions that changed his direction and growth. He is now one of the richest and most influential people in the world of confectionery.
