Pietro Ferrero - baker and chocolatier

Humble beginnings of €20 billion company

Pietro Ferrero

Pietro Ferrero, the founder of the Ferrero chocolate and confectionery company, was born in Farigliano, a small town in Piedmont, on this day in 1898.

A baker by profession, he moved to nearby Alba in 1926 with his wife and young son, Michele, before deciding to try his luck in Turin, where in 1940 he opened a large pastry shop in Via Sant’Anselmo.

Trading conditions were tough, however, and the business was not a success.  The family returned to Alba in 1942, setting up a smaller bakery in Via Rattazzi, at the back of which Pietro created a kind of confectionery laboratory.

He had hit upon the idea of trying to find alternative materials from which to make products, largely because the high taxes on cocoa beans meant conventional chocolate-based pastries were expensive to make.

Hazelnuts, on the other hand, were plentiful, Piedmont being one of Italy’s major producers. One of his experiments involved combining Gianduja, a traditional Piedmontese hazelnut paste, with about 20 per cent chocolate. 

Pietro's original Giandujot
hazelnut 'chocolate' bars

Convinced his customers would like the taste, he began manufacturing bars of his chocolate-substitute on site at the bakery, selling it wrapped in foil under the name Pasta Gianduja and then Giandujot. It was popular as a sweet snack, often served in thin slices on bread.

Demand for the product increased rapidly, so much so that producing it by hand became impracticable. Together with his wife, Piera, Pietro founded the company Ferrero on May 14, 1946, built a factory in Alba on Via Vivaro and began to hire new workers.

Sadly, Pietro died in 1949 at the age of just 50, not realising his company would grow in quite the way it did.

Sales soared after a creamy, spreadable version of Gianduja was produced in 1951 under the name Supercrema. This was the forerunner of Nutella, the chocolate-hazelnut spread invented by Pietro’s son, Michele, who inherited the business and turned it into one of the world’s biggest brands.

Under Michele’s astute management, the company expanded to produce a whole range of confectionary products, including Ferrero Rocher praline chocolates, the Kinder range of eggs and bars, Mon Cheri cherry liqueur chocolates and the espresso-filled Pocket Coffee chocolates.

Ferrero SpA produces 365,000
 tons of Nutella each year

Today Ferrero sells more than 365,000 tons of Nutella every year, has 11 factories around the world, employs more than 33,000 people and the company is valued at around €20 billion ($23.72 billion).  Incredibly, the company uses 25 per cent of the entire global hazelnut crop n producing Nutella.

When he died in 2015, Michele Ferrero was the richest man in Italy according to the Bloomberg Billionaires index and the 20^th richest person in the world, with a personal fortune of almost €15 billion.

Although it has offices in Luxembourg, Ferrero SpA remains a private company based in Alba and still, essentially, a family business.  Pietro’s grandson, Giovanni – son of Michele – is the current executive chairman.

The appointment earlier this year as chief executive of Lapo Civiletti, the company’s former head of operations in central and eastern Europe, was the first time a non-family member had filled such a high-ranking position in the company.

Alba's San Lorenzo cathedral

Travel tip:

Apart from Ferrero, the town of Alba – about 32km (20 miles) northeast of Farigliano and 60km (37 miles) southeast of Turin – is important for its production of truffles, peaches and wine.  The wines produced locally include Barolo, Barbaresco, Barbera, Nebbiolo and Moscato. The town has a population of almost 32,000 and its historic centre, built on the site of the Roman city of Alba Pompeia, includes the Romanesque cathedral of San Lorenzo and the Gothic church of San Domenico.

Via Roma is one of Turin's main shopping streets

Travel tip:

Via Sant’Anselmo, where Pietro Ferrero ran a pastry shop before moving to Alba, is one of the streets parallel with Turin railway station, south of Corso Vittorio Emanuele II. The city’s main shopping area is on the north side of Corso Vittorio Emanuele, around Via Roma, Via Giuseppe Luigi Lagrange and Via Carlo Alberto. Turin also has 19km (11 miles) of covered arcades and hosts more than 60 markets, including the largest open market in Europe at Porta Palazzo in Piazza della Repubblica.

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Michele Ferrero - the man who invented Nutella

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Michele Ferrero - the man who invented Nutella

Hazelnut spread that became a worldwide favourite

Nutella served with crusty bread is a popular snack
in Italy and around the world

The man who invented the global commercial phenomenon that is Nutella spread was born on this day in 1925.

Michele Ferrero, who died in 2015 aged 89, owned the Italian chocolate manufacturer Ferrero SpA, the second largest confectionery producer in Europe after Nestlé.

He was the richest individual in Italy, listed by the Bloomberg Billionaires index in 2014 as the 20th richest person in the world.  The wealth of Michele and his family was put at $20.4 billion, around 14.9 billion euros.

Ferrero is famous for such brands as Ferrero Rocher, Mon Cheri, Kinder and Tic Tacs.  But, it could be argued, none of those names would probably exist had it not been for Nutella.

The chocolate and hazelnut spread came into being after Michele, who was born in the small town of Dogliani in Piedmont, inherited the Ferrero company from his father, Pietro, who died in 1949 only three years after setting up in business from his bakery in nearby Alba.

Michele Ferrero became the richest man in Italy

With high taxes on cocoa beans making conventional chocolate expensive to make, Pietro had managed to build the business by producing a solid confectionery bar that combined Gianduja, a traditional Piedmontese hazelnut paste, with about 20 per cent chocolate.

A creamy, spreadable version was produced in 1951 under the name 'Supercrema' but it was after Michele decided to add palm oil to the recipe that the product really took off.  Renamed Nutella, and sold in a jar, it rolled off the production line at the factory in Alba for the first time on 20 April 1964.

Nutella was instantly popular and remains so more than 50 years later. Ferrero now produces 365,000 tons of Nutella every year in 11 factories around the world, with its biggest markets in Germany, France and Italy.

The 50th anniversary of Nutella's invention was commemorated with a stamp issued by Poste Italiane in 2014.  One fan of the product instigated World Nutella Day, which is celebrated by devotees on 5 February each year.

Building on Nutella's success, Ferrero created the Ferrero Rocher pralines, Kinder bars and Kinder Eggs and a host of other brands. What had begun as a small provincial chocolate factory turned into Italy's most valuable privately-owned company with sales of around 8 billion euros ($9 billion), selling its products in 53 countries.

Michele had a reputation for maintaining good working conditions for Ferrero's 22,000 employees. A fervent Catholic, he had a Madonna placed in every factory and office belonging to the company.

He eventually made his home in Monte Carlo but commuted to Alba by helicopter every day, playing an active role in creating new products until only a few years before his death.

Giovanni Ferrero, the youngest of Michele's two sons, is now the company's Chief Executive.  His brother, Pietro, was unfortunately killed in a cycling accident in South Africa in 2011.

Alba's Romaneque Duomo

Travel tip:

Alba, situated about 65 kilometres south-east of Turin, is a beautiful town famed for the production of white truffle, peaches and elegant wines, including Barbera and Barolo.  The town dates back to Roman times and has been fought over through history by Hungary, France, Spain and Austria among others.  Its partisans won a Gold Medal for Military Valour during the Second World War after liberating the town from Mussolini's Fascists.  Notable buildings include the Romanesque Duomo, built in the 12th century, restructured in the 15th century and further restored in the 19th century.

Travel tip:

Michele Ferrero's home town, about a half-hour drive from Alba to the south-west, Dogliani nestles among vineyards and woods of hazel trees.  Wine production plays an important role in the town's economy, in particular the Dolcetto di Dogliani red, which is made only from Dolcetto grapes grown within a small, clearly defined area, of which the yield is strictly controlled to maintain the wine's high value.  The late 19th century church of San Quirico e Paolo is impressive.  Visitors to the area before Christmas can witness the town's Presepio Vivente, in which local people enact the nativity scene on the nights of 23 and 24 December.

(Photo of Nutella by A Kniesel CC BY-SA 3.0)
(Photo of Duomo in Alba by Pippo-B CC BY-SA 3.0)

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