☕️ Sunday Coffee: What If You Could Invest in Happiness?
The Untouchable Sweet Empire of Nutella and Ferrero
MaxDividends Mission: Help & Support Everyone on the way Retire Early and Live off Dividends
My personal life & business column where I share life moments, insights on stock investing, long-term investment philosophy, and intriguing thoughts to benefit you.
Enjoy my Sunday Coffee column? Gift me a coffee for the next Sunday Coffee ❤️
Intro
You know that feeling when you crack open a jar of Nutella and suddenly life feels just a little bit better? Well, that’s the magic of Ferrero SpA, the privately owned Italian confectionery giant behind Nutella, Kinder, Ferrero Rocher, and even Tic Tac.
If Ferrero ever went public, you’d have to fight off investors sprinting faster than kids running for the candy aisle. But alas, Ferrero remains a privately held sweet secret.
So, let’s dive into the story behind this billion-dollar behemoth that churns out happiness by the ton—literally.
Nutella: From Melting Disaster to Global Icon
Ferrero’s crown jewel, Nutella, was born not out of a boardroom strategy session, but by sheer accident. Back in 1946, Pietro Ferrero—a humble pastry chef in war-torn Italy—was trying to work around the cocoa shortages. He created a hazelnut and cocoa confection called Gianduja, a cheap and delicious treat for the masses.
One hot day, disaster struck. A batch of Gianduja melted into a gooey mess. Instead of crying over spilled chocolate, Pietro rebranded it as a spread.
Customers loved it. Less cocoa, lower costs, and sky-high demand. By 1964, the product was renamed Nutella, a combination of “nut” and the Italian suffix “ella.” Today, over 365,000 tons of Nutella are sold every year—enough to circle the globe with toast.
Ferrero Beyond Nutella: More Than Just a One-Hit Wonder
Ferrero isn’t just Nutella. It’s a confectionery juggernaut with a lineup of brands that dominate the snack aisle:
Ferrero Rocher: The golden chocolate spheres of luxury. Over 3.6 billion Ferrero Rochers are sold annually, often fueling holiday feasts and Valentine’s Day romances.
Kinder: Home to Kinder Surprise, Kinder Bueno, and more. Kinder alone generates over $4 billion annually, making it a powerhouse in its own right.
Tic Tac: Those little breath-freshening mints that somehow end up in every car’s cup holder. Ferrero sells billions of Tic Tacs globally every year.
Raffaello: The coconut-covered treat that feels like a mini tropical vacation.
And if you thought Ferrero was content with just chocolate, think again. In 2018, the company acquired Nestlé’s U.S. confectionery business for $2.8 billion, adding brands like Butterfinger, Crunch, and Baby Ruth to its portfolio. Ferrero now boasts annual revenues north of $15 billion, placing it among the largest private confectionery companies in the world.
Marketing Brilliance: “Spread Happiness” and Sell Chocolate
Ferrero’s success isn’t just about delicious products—it’s also about killer marketing. Who doesn’t remember slogans like “What would life be without Nutella?” or ads telling you to “Spread happiness on your bread”? The company spends a fortune on advertising, embedding its brands into the hearts and stomachs of millions.
And let’s talk about distribution. Nutella isn’t just an Italian favorite—it’s a global phenomenon. It’s sold in 160 countries, and a jar is purchased every 2.5 seconds. That’s faster than some people finish a slice of toast.
Ferrero’s Private Status: A Sweet Tease for Investors
Here’s the catch: you can’t buy Ferrero stock. The company is tightly held by the Ferrero family, now led by Giovanni Ferrero, Pietro’s grandson. The secrecy has only fueled the allure. If Ferrero ever IPO’d, it would undoubtedly rival giants like Hershey (HSY) and Mondelez (MDLZ).
But unlike its publicly traded peers, Ferrero can take the long view, reinvesting in growth without the pressures of quarterly earnings reports. That’s part of why its brands maintain such high quality. If you’ve ever wondered why Nutella tastes better in Europe, it’s because Ferrero refuses to skimp on ingredients or dilute recipes for cost-cutting.
How Big Is the Sweet Empire?
Let’s put Ferrero’s reach into perspective. According to some estimates:
Nutella sales alone exceed $3 billion annually.
Combined with Kinder and Ferrero Rocher, the company’s confectionery brands likely make up more than 70% of its revenue.
Ferrero produces enough Tic Tacs each year to stretch to the moon and back. Twice.
Ferrero Today: Sweet Success, Big Moves, and Even Bigger Dreams
The Ferrero Group has confirmed strong financial momentum into 2024, as it records turnover of €17 billion, up by 20.7% for the period 2022/2023
Despite economic challenges like inflation and geopolitical uncertainties, Ferrero’s resilience paid off. The company expanded its manufacturing footprint to 37 plants worldwide and made big moves in the North American market by acquiring Wells Enterprises, known for ice cream brands like Blue Bunny® and Halo Top®.
Ferrero didn’t stop there. They also acquired Italy’s Fresystem Group, giving them an edge in the frozen bakery game. Oh, and for those Nutella fans, their Nutella Muffins were a hit, thanks to Fresystem.
Ferrero continues to innovate across its iconic brands. The past year saw the launch of Nutella Biscuits and Nutella B-ready in the U.S., as well as new ice cream entries for Kinder, Rocher, and Raffaello in Europe.
To keep up with rising demand, Ferrero invested €811 million in expanding production facilities across Italy, the U.S., Germany, and Spain.
And of course, sustainability remains a core focus, with efforts in environmentally friendly sourcing, responsible consumption, and empowering communities.
What started as a small pastry shop in Alba, Italy, back in 1946, is now a global empire selling beloved brands like Nutella®, Kinder®, Ferrero Rocher®, and Tic Tac® in over 170 countries. Ferrero’s family-driven culture, now in its third generation, continues to sprinkle joy (and chocolate) across the world.
The Investing What-If: Would You Buy Ferrero Stock?
Here’s the million-dollar question: would you invest in Ferrero if you could? Most dividend investors would salivate at the prospect. Ferrero’s products are recession-proof—people still buy chocolate during downturns (if not more). Its private status and family ownership also ensure long-term thinking, the hallmark of a stable business.
Ferrero might not be on the stock market, but if it were, it would likely rival other consumer staples juggernauts like Nestlé, Hershey, or Mondelez in terms of dividend reliability and brand power.
A Legacy of Sweetness
Ferrero’s story isn’t just about chocolate and mints—it’s about resilience, innovation, and staying true to family values. From Pietro’s melted Gianduja disaster to Nutella’s global dominance, the company has built a legacy that’s as rich as its products.
So next time you scoop Nutella onto your toast or pop a Tic Tac, take a moment to appreciate the empire behind the sweetness. And while we can’t invest in Ferrero directly, we can still enjoy the dividends of happiness it delivers, one jar at a time.
P/S
Twenty five years left since I first meet it.
And my recommendation still “Strong Buy” 😂😂
With respect for your well-being, Max
Did You Enjoy my Today’s Sunday Coffee post? Gift me a coffee for the next Sunday Coffee ❤️
The Most Popular of the Week
Max Dividends Portfolio: Month 9 - Week 5. Goal $12,000 Monthly for 120 Months
Warren Buffett Is Set to Collect $900 Million in Annual Dividend Income From Bank of America Stock
MaxDividends Premium Today
MaxDividends Stocks of the Week: Top 10 Undervalued, High-Yield & Dividend Growth Stocks Every Week
+ Bonus - access to full list of MaxDividends stocks updated weekly. Boost your passive income for living off dividends.
RoadMap to Live Off Dividends
Ready-to-go step by step weekly guide to achieving financial freedom.
Easy Peasy: Build Your MaxDividends Portfolio to Live Off Dividends with Pre-Selected Stock Sets
Grab ready-made MaxDividends stock sets starting at $300, $500, or $1000 each week.
MaxDividends Bussiness Overview
Posts & Podcasts with deep dives into the top dividend stocks we hold. Key points, current statement, perspectives and consensus.
Max Dividends Portfolio: Goal $12,000 Monthly for 120 Months
My personal MaxDividends portfolios and short list with all the changes and updates weekly.
MaxDividends App & Tools Access
Comprehensive tools to help you on the way retire early and live off dividends.
Community Like-Minded Access
Stay in touch with me and other MaxDividends followers. MaxDividends community chat of like-minded who wants to live off dividends and retire early. Discuss ideas, share insights, build plans and set goals. Support, motivation, like-minded - all in!
What ELSE
Top Dividend Ideas with Premium
Is This Energy Stock the Income Play You’ve Been Waiting For?
Why This Stock Deserves Your Attention Right Now
Is This Tech Stock Your Next Long-Term Dividend Play?
An Undervalued Gem with a Low P/E and Rapid Dividend Growth
Undervalued Dividend Lists with Premium
Undervalued 🦅 Dividend Eagles
Undervalued 👑 Dividend Kings
Undervalued 🎩 Dividend Aristocrats
Dividend Insights with Premium
Top 5 MaxDividends Ideas of the Month
Top 3 the Most Promising Dividend Ideas of the Week
List of Dangerous Dividend Stocks
And even MORE with Premium
The Best Dividend Tools in the World from MaxDividends Team
Dividend Screener: Find Your Own Hidden Gems
Dividend Portfolio Tracker: Take Under Control All Aspects of Your Passive Income
Dividend Checker: Check Financial and Dividend Score 19,000+ companies worldwide
Don’t have access? Check Your Paid Status & Upgrade to Premium.
FAQ
How Well Does the MaxDividends Strategy Work for Building a Growing Passive Income?
MaxDividends Roadmap to Early Retirement with Living Off Dividends
MaxDividends is subscriber’s supported newsletter with community and community member’s tools to start building long-term growing passive income to live off dividends and retire early.
Someone's sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
Great article.
That is one company I wish I could invest in.
But I also understand why they didn't go public. If I were in their shoes, I wouldn't either.