He Turned His Jar Of Chocolate Into Billions!
Summary
TLDRThe script delves into Nutella's rich history, tracing its origins from post-Napoleonic chocolate scarcity to the iconic spread we know today. Born out of wartime necessity, it evolved through generations of the Ferrero family, overcoming tragedies and market challenges. From its humble beginnings as 'pasta gianduja' to a global phenomenon, Nutella's story is one of innovation, marketing genius, and resilience, facing controversies over health and sustainability while remaining a beloved brand.
Takeaways
- 🍫 The origin of Nutella dates back to the 19th century in Piedmont, Italy, where the Napoleonic Wars led to the creation of a chocolate-hazelnut mixture to ration cocoa supplies.
- 🛠️ Pietro Ferrero, opening a pastry shop in Turin, innovated on the war-time mixture, creating a thicker, creamier version that could be sliced and put on bread, which gained popularity among families.
- 🌍 World War II caused another cocoa shortage, leading to the popularity of Pietro's hazelnut wedge, a precursor to Nutella, which was affordable and met the demand for chocolate substitutes.
- 🔄 Michele Ferrero, Pietro's son, perfected the recipe and transformed it into a globally recognized product, overcoming family tragedies and building on his father's legacy.
- 🏭 Under Michele's leadership, the Ferrero company expanded into international markets, with Nutella becoming a breakfast staple and sponsoring high-profile events like the Giro de Italia bicycle race.
- 📈 Nutella's success led to rapid company growth, with annual turnovers reaching billions of dollars and the need for sustainable hazelnut production, as the company became a major player in the global hazelnut industry.
- 🌳 The Ferrero company addressed the scalability issue by planting over 6.6 million hazelnut trees and investing in sustainability to secure their supply chain.
- 🌐 Despite controversies over health and environmental impacts, particularly regarding palm oil use, Nutella has reinvented itself under Giovanni Ferrero's direction, committing to 100% sustainable palm oil and ensuring product safety.
- 🛡️ The Ferrero family has aggressively protected its brand and secrets, with litigation against entities that infringe upon their trademarks and maintaining tight control over their recipes.
- 🎉 Nutella has become deeply integrated into Italian and global culture, with a dedicated 'World Nutella Day' and even appearing on an Italian postage stamp, symbolizing its national identity.
- 📊 The company's commitment to innovation and marketing has turned Nutella into one of the most resilient and successful food products in the world, with a jar sold every two and a half seconds.
Q & A
What significant change in the chocolate industry occurred in Piedmont during the 19th century?
-The significant change was the addition of hazelnut to chocolate to make supplies last longer during the Napoleonic Wars, which eventually led to the creation of Nutella.
Who created the mixture of hazelnut paste in dark chocolate known as 'Gianduja'?
-Jean duya created the mixture of hazelnut paste in dark chocolate, resulting in smooth and creamy bars.
What was the impact of World War II on Pietro Ferrero's business?
-During World War II, cocoa supplies were short, which led to the popularity of Pietro Ferrero's chocolate hazelnut mix, a product that was affordable and met the cravings of many in Italy.
How did the Ferrero family respond to the shortage of cocoa during World War II?
-Pietro Ferrero responded by creating a new product, a hazelnut wedge, which was affordable and widely available to meet the demand for chocolate substitutes.
What product did Pietro Ferrero create that was a precursor to Nutella?
-Pietro Ferrero created 'pasta gianduja,' a thicker, creamier, and denser version of the hazelnut and chocolate mixture, which could be sliced and put on bread.
Who took over the Ferrero business after Pietro Ferrero's death?
-After Pietro Ferrero's death, his brother Giovanni Ferrero took over the business temporarily before the responsibility was passed to Pietro's son, Michele Ferrero.
What was the new name given to the product that Michele Ferrero developed from his father's 'pasta gianduja'?
-Michele Ferrero renamed the product 'Nutella,' combining the English word 'nut' with the Italian suffix 'ella' used in sweet adjectives.
What marketing strategies did Michele Ferrero employ to make Nutella a household name?
-Michele Ferrero launched a nationwide campaign with advertisements on popular television programs, sponsored athletes and events, and created an 8-sided glass jar for distinctive packaging.
How did Nutella's popularity lead to a problem for the Ferrero company?
-The immense popularity of Nutella led to a problem of scalability, as the company struggled to keep up with the demand for hazelnuts, a key ingredient in Nutella.
What steps did Ferrero take to address the issue of hazelnut scarcity?
-Ferrero began to plant its own hazelnut trees, with over 6.6 million trees planted since the 1990s, and invested heavily in hazelnut production to ensure sustainability.
How has the Ferrero company responded to controversies regarding the use of palm oil in Nutella?
-Ferrero has committed to using 100% sustainable palm oil and has made continued environmental efforts to deflect negative associations with palm oil, ensuring the safety and quality of its products.
What significant business move did Ferrero make in 2018 to strengthen its position in the confectionery market?
-In 2018, Ferrero purchased Nestle's entire U.S. confectionery business, which not only weakened its arch-rivals but also reinforced its place as the second-largest chocolate producer globally.
Outlines
🍫 The Origins and Evolution of Nutella
This paragraph delves into the origins of Nutella, tracing back to the aftermath of the Napoleonic Wars in Piedmont, Italy. The region's chocolate industry adapted by incorporating hazelnuts into chocolate due to trade blockades. The Ferrero family's venture into the chocolate business began with 'pasta gianduja,' a chocolate-hazelnut mixture, which gained popularity during World War II due to cocoa shortages. Pietro Ferrero's innovation and his son Michele's refinement of the product led to the creation of Nutella, a spreadable chocolate-hazelnut paste. The paragraph highlights the brand's resilience through generations and its transformation from a wartime ration into a globally recognized product.
🚀 Nutella's Global Expansion and Marketing Strategies
The second paragraph focuses on the global expansion of Nutella under the leadership of Michele Ferrero. After the death of his uncle Giovanni, Michele took the helm and rebranded 'super crema gianduja' to Nutella, with a new formula and an iconic eight-sided glass jar. His marketing genius involved nationwide campaigns, sports sponsorships, and creating a family-friendly breakfast image. Despite controversies over nutritional values and misleading health claims, Nutella's popularity soared, becoming a staple in Italian households and spreading across Europe and the United States, facing challenges such as the global hazelnut shortage and the company's response to scale up its production.
🌳 Sustainability and the Growth of the Ferrero Empire
This paragraph discusses the Ferrero company's efforts to address sustainability and scalability issues. As Nutella's popularity grew, so did the demand for hazelnuts, leading to the planting of millions of hazelnut trees and a significant investment in hazelnut production. The company's expansion is also highlighted, with Giovanni Ferrero at the helm, achieving a record annual turnover and becoming the second-largest chocolate producer globally. The paragraph touches on the controversies surrounding palm oil use in Nutella and the company's commitment to using sustainable palm oil, as well as its efforts to protect its brand and recipes through aggressive litigation and secrecy.
🏆 Nutella's Integration into Culture and Recipe Innovation
The final paragraph examines Nutella's integration into culinary culture and its evolution as a key ingredient in various recipes, from desserts to unconventional dishes like Nutella popcorn. It underscores the brand's ability to adapt and reinvent itself amidst environmental and health concerns, led by Giovanni Ferrero. The paragraph also mentions the opening of Nutella cafes and the establishment of World Nutella Day, showcasing the brand's cultural impact and its resilience as a company that has not only survived but thrived through different eras, including wartime.
Mindmap
Keywords
💡Nutella
💡Pietro Ferrero
💡World War II
💡Hazelnut
💡Scalability
💡Marketing
💡Sustainability
💡Palm Oil
💡Health Concerns
💡Globalization
💡Ferrero Rocher
Highlights
The origin of Nutella dates back to the 19th century, amidst the Napoleonic Wars, with the addition of hazelnut to chocolate to extend supplies.
Pietro Ferrero and his brother Giovanni launched their business in 1933, initially selling cakes, pastries, and chocolates.
Pietro Ferrero's innovation of 'pasta gianduja' during World War II was a response to cocoa shortages, leading to the creation of a popular hazelnut-chocolate spread.
Pietro's son, Michele Ferrero, refined the recipe and transformed 'pasta gianduja' into Nutella, a global phenomenon.
Nutella's name was created by Michele Ferrero, combining 'nut' with the Italian suffix 'ella', for a catchy and marketable identity.
Aggressive marketing strategies by Michele Ferrero, including television advertisements and sports sponsorships, helped popularize Nutella.
Nutella's health claims have been scrutinized due to its high sugar and fat content, with the company facing criticism for its nutritional value.
The Ferrero company faced a scalability issue due to the global demand for hazelnuts, leading to the planting of millions of hazelnut trees.
Nutella's success in the United States positioned it as a rival to peanut butter, becoming a staple in American households.
Giovanni Ferrero, Michele's son, has continued the family legacy, expanding the company's annual turnover to a record 15 billion dollars in 2022.
A 70% discount on Nutella in France in 2018 caused a riot, highlighting the product's cultural significance and popularity.
Ferrero has been criticized for its use of palm oil, with concerns about deforestation and health risks due to contaminants.
The company has committed to using 100% sustainable palm oil and has made efforts to address environmental and health concerns.
Ferrero's acquisition of Nestle's U.S. confectionery business in 2018 solidified its position as the second-largest chocolate producer globally.
The Ferrero company has fiercely protected its secrets, with tours of their Alba plant forbidden to prevent industrial espionage.
Nutella has been integrated into thousands of recipes, becoming an essential ingredient as well as a standalone product.
Giovanni Ferrero has led the company through controversies, emphasizing sustainability and maintaining the integrity of the family business.
Transcripts
the origin of this jar is much deeper
than it seems if you watched our Ferrero
Rocher video then you'll know half the
story but this is the other half born
between the chaos of Napoleon and Hitler
growing through generations of tragedy
and fighting to keep secrets worth
billions a brand at War since its
Inception this is the dark history of
Nutella
in the Northwestern Italian region of
Piedmont something Monumental kicked off
the 19th century amidst the wreckage of
the Napoleonic Wars here in Piedmont
there was a small but dramatic change in
the chocolate industry the region was
already known for producing the best
chocolate in the world with bakeries
around Europe relying on the local
industry when blockades cut off trade to
and from the region chocolatiers needed
to ration their supplies the city of
Turin just over 10 miles away began
adding hazelnut to make their chocolate
supplies last longer nobody knew it yet
but this small decision would lead to a
domino effect ending with the most
iconic spread of all time Nutella
150 years before Nutella hit the shelves
Jean duya was created a mixture of
hazelnut paste in dark chocolate
resulting in smooth soft bars with a
thick creamy taste but when the Wars
ended and Coco became available again
zhanduya lost its appeal people
preferred pure chocolate but a man named
Pietro Ferrero opening his first pastry
shop in Turin was determined to change
that Pietro and his brother Giovanni
launched the business in 1933 selling
cakes pastries and chocolates but didn't
find immediate success undeterred by
their momentary setback the brothers
decided instead to settle the business
in the small town of Alba where a
chocolate Fortune would begin from there
Pietro began a factory to create pasta
janduya his twist on the war rationed
Innovation that came out of Turin the
previous Century it was thicker creamier
and denser meaning it could be cut into
slices and put on bread quickly earning
popularity among young families Pietro
sold 660 pounds in the first year alone
we when World War II hit while Adolf
Hitler in the Third Reich were marching
through Europe and cutting off National
borders cocoa supplies went short and
once again forcing people to turn to
Chocolate hazelnut mixes to fix their
cravings and many in Italy turned to
Pietro's newest product a hazelnut wedge
which was affordably available for
around 5 cents U.S each the recipe
wasn't quite perfected yet though that
was left to Pietro's son Michelle who
would transform his father's name and
his pasta zhanduya into a global
addiction but only after suffering two
family tragedies
Michelle's father had imprinted on him a
deep appreciation for confectionary but
when Pietro Ferrero suddenly died at age
50 in 1949. Michelle wasn't yet ready to
take on the mantle as the business and
family patriarch that responsibility
temporarily was handed to Pietro's
brother Giovanni Ferrero who had been
successful in other businesses since
their young days as budding
entrepreneurs in Turin under Giovanni's
command the Ferrero Corporation expanded
to North American and Asian markets
throughout the 1950s together with
Michelle they release a range of
products from the sultanino candy and
the crema block to pralines named Sherry
each of them having varying degrees of
success but one product would come to
stand out more than all the others and
its Origins are subject to Fierce debate
that continues today both accounts
include some fortuitous weather and a
sudden realization on on a hot summer
day in Alba blocks of pasta janduya
melted from their solid form into a more
liquid consistency but instead of
complaining retailers reported back to
Michelle that they were delighted with
the change the spreadability was perfect
for eating with bread another telling
begins inside ferrero's Alba Warehouse
itself where similarly the mixture
melted the quick thinking staff put it
into jars to avoid any waste either way
the pasta zanduya of Michelle's father
was now a thing of the past a new
product was born converting it into a
thick spreadable consistency was the way
forward now ferrero's main focus was
what they called super Crema ganduya
sold in bakeries all over Italy quickly
taking hold it was a regional sensation
but it wasn't quite ready to go Global
yet for that it would need a new name a
new are and a stroke of Genius chapter 3
a marketing genius the 1960s were
Michelle's time to shine after his uncle
Giovanni prematurely died in 1955. just
six years after his brother the rightful
heir to the Ferrero Empire Michelle was
left with no choice but to step up and
fill his father's shoes rather than
crumbling Under Pressure Michelle
quickly proved that leadership and
Innovation were in his blood his first
order of business was to fine-tune the
super chroma zhanduya which he
identified as the product with the most
potential staying loyal to his father's
original recipe the new formula had just
seven ingredients and the same chocolate
hazelnut taste that his customers had
come to love but having a quality
product wasn't enough Michelle was
competing in the emerging climate of
mass marketing and he knew that he also
needed a new newer more marketable
identity to achieve wider appeal so he
released the spread under a new name
Nutella combining the English word nut
with the suffix Ella which is used in
Italian with sweet adjectives Michelle
now had a catchy name to grab the
Public's attention and it would play
well in markets all around the world
manufactured out of the Ferrero Factory
in Alba Nutella was put in an equally
distinctive eight-sided glass jar
Michelle launched a nationwide campaign
throwing money at publicity placing
advertisements on popular television
programs and making Nutella into a
household name Michelle also expands
into the World of Sports sponsoring
athletes and events most notably the
iconic Giro de Italia bicycle race where
Michelle sends the trenino dibimbi
Ferrero truck to ring with cyclists
making headlines around Europe these
these ingenious strategies pay off Big
Time Nutella is quickly transformed from
a local Piedmont favorite into an
Italian staple most popular among
children Ferrero then released smaller
30 gram plastic containers better suited
for small quantities targeted not
children Nutella has been able to Market
its product by touting supposed health
benefits without disclosing the high
sugar and fat content but one serving
which is determined as two tablespoons
contains 11 grams of fat and 21 grams of
sugar and early after its release
Nutella advertised that only 5 000
calories showed how nutritional it was
this has meant the company has been
under constant scrutiny for its
nutritional value but Michelle powers on
honing his Market to become a
family-friendly breakfast spread
offering a tasty alternative to
breakfast cereal just like his father's
pasta
it was best enjoyed on a slice of bread
chapter 4 The Perils of success by 1970
the Ferrero company is turning over the
equivalent of 1.2 billion dollars a year
that means rapid expansion to other
countries and building factories around
the world all this to keep up with the
hunger for Nutella that Michelle's
marketing has created German French and
UK markets are all a hit cementing
Nutella as Europe's favorite spread used
on toast in pastries and for a range of
other uses one of its most successful
markets becomes the United States which
it enters in the 1980s popping up as a
rival to the ultra popular Peanut Butter
but a huge problem is looming
scalability hits a wall when the company
drains the global supply of hazelnuts
there are simply not enough to keep keep
up with demand one jar of Nutella
contains an average of over 90 hazelnuts
the solution Ferrero begins to plant its
own hazelnut trees that's why since the
1990s over 6.6 million trees have been
planted including a 70 million dollar
investment into hazelnut trees in
Australia the company's other products
like Ferrero Rocher also rely on the
availability of hazelnuts forcing them
to get serious about sustainability over
the coming decades the company would
become responsible for 25 of global
hazelnut production the scale of the
operation has grown to gargantuan
proportions there is now even a world
Nutella day where fans are invited to
post pictures of themselves enjoying
Nutella products and Nutella has found
its way onto an Italian postage service
stamp cementing its association with
Italian national identity from a small
Factory in Alba employing just over 100
people during Pietro ferrero's time
Michelle oversaw an expansion to over 30
000 people worldwide when he died in
2015 Michelle was one of the richest men
in Europe with a net worth of 26 and a
half billion dollars the company then
officially moved into the hands of the
third generation in the Ferrero Dynasty
but already with Decades of experience
they have been well equipped to battle
some of the biggest controversies in the
company's history chapter 5 the present
at the helm is Giovanni Ferrero who
managed the company since 1997 together
with his brother Pietro until Pietro
tragically died in a bicycling accident
in 2011. with the passing of their
father Michelle Giovanni has inherited
the throne under his Direction ferrero's
annual turnover has jumped to a record
15 billion dollars in 2022 thanks to
Company products like Ferrero Rocher
Kinder and Tic Tacs but undeniably
Nutella is the Crown Jewel of the
collection ajar is sold every two and a
half seconds the product has never been
more popular which has brought its own
problems in 2018 a discount on Nutella
at a major French Supermarket which
slashed prices by up to 70 percent
caused a violent Riot where police had
to be called in to restore peace but the
issues go deeper than Supermarket riots
for years the company has been under
Fire for its dependence on palm oil
according to Ferrero this kind of oil is
the only way to guarantee special
spreadability
which is vital for Nutella the company
uses a whopping 170
000 metric tons a year the problem is
that many plantations which are in
tropical climates need to clear huge
sections of forest before beginning to
grow palm oil resulting in a dramatic
drop in Wildlife biodiversity and
damaging ecology public backlash
threatened to put a dent in ferrero's
prestigious reputation one French
Minister even publicly called for a
boycott of the product on National
Television because of its linked to
massive deforestation and global warming
in 2017 the European Food Safety
Authority ruled that palm oil is a
potential Health concern researchers
concluded that palm oil when heated up
through the manufacturing process
creates contaminants that could damage
DNA and be carcinogenic but a war of
public relations Is Something the
Ferrero family has been engaged in since
the 1950s when Michelle promoted Nutella
as a healthy breakfast Nutella has
pivoted to using 100 sustainable palm
oil they even managed to force the
French minister to apologize through
continued environmental efforts Ferrero
is deflecting the negative association
with palm oil the company has also
addressed health concerns guaranteeing
that all its products containing palm
oil are totally safe for consumption in
2018 Ferrero purchased Nestle's entire
U.S confection business weakening its
Arch Rivals grip on the biggest Market
in the world and reinforcing their place
as the second largest chocolate producer
on the planet
chapter 6 keeping it in the family
Giovanni Ferrero Micah's father has
remained fiercely committed to the
Integrity of the generational business
since its Inception in 1962 the recipe
of Nutella has only slightly been
altered containing sugar vegetable oils
hazelnuts cocoa skimmed powder whey
powder soy lexicon and vanillin what is
contained in this vegetable oil is a
closely guarded secret through both
Michelle and Giovanni's management
periods the company has voluntarily lost
lawsuits just to protect its Secrets
tours of their Alba plant is still
forbidden to avoid industrial Espionage
in other areas Ferrero has used
litigation to aggressively protect its
name a new york-based dessert shop named
nuteria was hit with the threat of a
lawsuit for its name which was based on
its products most of all of which
contained Nutella in the same year
Nutella opened up its very own Cafe in
Chicago any official association with
Nutella is risky but the brand has been
helped immensely by the integration of
Nutella into thousands of recipes from
cheesecake and Tiramisu to pancakes and
popcorn Nutella has become an essential
ingredient just as much as it has a
product on its own with humble
beginnings more than a century ago
Pietro Ferrero was able to turn the
ravages of War into a unique Regional
product his son Michelle waged a war of
his own with Relentless and expensive
marketing spreading Nutella beyond the
borders of Italy and creating an image
of Health Nutella has become integrated
with thousands of cooking recipes and is
celebrated as an iconic Italian brand
now against a barrage of environmental
and health accusations Nutella has once
again reinvented itself this time as a
sustainable company under the direction
of Giovanni Ferrero the company has
grown to record Heights ballooning his
personal net worth to 32 billion dollars
and safeguarding the family Dynasty
having been through many iterations
since Pietro's pasta janduya Nutella is
a story of evolution making it one of
the most resilient companies in the
world not only surviving wartime but
thriving during them
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