He Turned His Jar Of Chocolate Into Billions!

Summary

The 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

00:00

🍫 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.

05:01

🚀 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.

10:01

🌳 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.

15:02

🏆 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.

Keywords

💡Nutella

Nutella is a brand of chocolate-hazelnut spread originating from Italy. It is the central theme of the video, representing the evolution of a product from its wartime origins to a global phenomenon. The script describes how Nutella was created as a response to chocolate shortages and how it has become an iconic brand, with its unique spreadability and distinctive packaging.

💡Pietro Ferrero

Pietro Ferrero is the founder of the Ferrero company and the creator of the precursor to Nutella, known as 'pasta gianduja.' His innovative approach to using hazelnuts as a way to extend chocolate supplies during times of scarcity is highlighted in the video. His legacy is the foundation upon which the Nutella brand was built and expanded by subsequent generations.

💡World War II

World War II is a historical context mentioned in the script that significantly impacted the development of Nutella. The war led to cocoa shortages, which in turn influenced Pietro Ferrero to create a chocolate substitute using hazelnuts. This period is crucial for understanding the origins of Nutella and its initial popularity.

💡Hazelnut

Hazelnuts are a key ingredient in Nutella, contributing to its unique flavor and texture. The script discusses how the use of hazelnuts in chocolate was initially a response to supply shortages but became a defining characteristic of the brand. The Ferrero company's reliance on hazelnuts is so significant that they have become involved in their own cultivation to ensure a stable supply.

💡Scalability

Scalability refers to the ability of a company to increase its output to meet growing demand. The script mentions that Nutella faced challenges with scalability due to the high demand for hazelnuts. This concept is important for understanding the operational challenges and strategic decisions the company had to make to meet consumer demand globally.

💡Marketing

Marketing is the process of promoting and selling products. The video emphasizes the role of marketing in the success of Nutella, particularly under the leadership of Michele Ferrero. The script describes innovative marketing strategies, such as television advertisements and sports sponsorships, which helped to establish Nutella as a household name.

💡Sustainability

Sustainability in the context of the video refers to the company's efforts to maintain a balance between economic growth and environmental responsibility. The script discusses how Ferrero has addressed sustainability concerns, especially regarding the sourcing of palm oil and hazelnut cultivation, to ensure the long-term viability of their products and operations.

💡Palm Oil

Palm oil is a type of vegetable oil used in Nutella for its spreadability. The script highlights the controversy surrounding palm oil due to its environmental impact, such as deforestation and loss of biodiversity. The company's response to these concerns, including the use of sustainable palm oil, is a significant aspect of their corporate responsibility and public image.

💡Health Concerns

Health concerns mentioned in the script relate to the high sugar and fat content in Nutella, as well as the potential health risks associated with palm oil when heated during manufacturing. These concerns are important for understanding the challenges the brand faces in maintaining its image as a family-friendly breakfast option while addressing nutritional content and safety.

💡Globalization

Globalization is the process of expanding a brand or business worldwide. The script outlines how Nutella transitioned from a regional product to a global phenomenon. The company's expansion into international markets, such as the United States, and the creation of World Nutella Day exemplify the brand's successful globalization strategy.

💡Ferrero Rocher

Ferrero Rocher is another product of the Ferrero company, mentioned in the script as part of the company's diverse product line. It serves as an example of the company's broader success beyond Nutella and illustrates the brand's ability to create and market a variety of confectionery products.

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