His people were everything to Ferrero and they rewarded him accordingly. He sacrificed profit margin in order to pay them well, arranged transport to and from his workers' villages, kept them employed during cyclical downturns and provided free medical care and other welfare services including regular company outings. Under Ferrero's leadership, there has never been a strike or any union strife, somewhat unusual for an Italian business.
Many of his staff would work around the clock alongside Michele, experimenting and tasting new formulas and products until they were perfect (somebody had to do it!).
Many business owners talk about doing things that are "different"; Ferrero walked the talk. The basic paste that is Nutella - ground hazelnuts mixed with cocoa - was a well-known product that had been produced in northern Italy since Napoleonic times. It was traditionally made into a candy called gianduja which was like a large loaf of hard butter.
After World War II, with chocolate shortages and a lack of money for luxury items, Ferrero set about creating a new product by adding enough vegetable oil to the gianduia to make a spread. This spread, Nutella, was unlike anything on the market and has never been replicated due to its recipe remaining as secret as the formulas for Coca Cola and KFC's fried chicken. It was sold in jars, so a little could be spread on a piece of bread and feed a family of six for weeks.
Another innovation came later with Mon Cheri, a range of cherry liqueur chocolates. In marketing these delicacies in post-war Germany, he realised that selling them in their usual boxes made them too expensive. So he looked for a way to give chocolate to the most people in the most economical way possible. The solution? Each Mon Cheri was sold singly - as a delectable cherry and chocolate mouthful.
As for taking his time, he certainly maintained his own pace, doing things only when the time was right. He waited decades before launching Nutella into the US, knowing he would be competing directly with the national favourite, peanut butter. He reportedly spent five years perfecting the crunch and the curve of the wafer inside Ferrero Rocher chocolates and he was prepared to wait years for the concept of Kinder Surprise - little chocolate eggs with a plastic toy inside - to catch on in a market that expected chocolate eggs to be large and available only at Easter.
Taking your time, finding your competitive advantage and caring for the people who work with you - a simple recipe for a sweet success.
• This column is presented in association with Fisher Funds
