“Spread” the Love: The Creator of Universally Loved Nutella Dies; Meanwhile, the World Still Hates Vegemite

On Valentine’s day, Michele Ferrero, Italy’s richest man, and the creator of Nutella, one of the world’s most loved bread spreads, died at the age of 89. In other news, another iconic spread, Vegemite, is still hated the world over.

Vegemite and Nutella
Vegemite vs. Nutella. Which would you put on your bread? Image from wanderingsheila.com

 

Nutella didn’t initially exist as we know it now. It started as Pasta Gianduja, a solidified combination of chocolate and hazelnut paste. Chocolates were very expensive and scarce back then, which was why hazelnuts were added as filler. Years later, vegetable oil was added for spreadability. It then became known as Supercrema.

Supercrema, the precursor of Nutella
The Nutella of yesteryears. Image from swide.com

 

In 1964, Michele Ferrero, revamped the recipe and placed the product in the now iconic jars. He named the new product “Nutella”.

Nutella 50 year stamp
Nutella has its own commemorative stamp. Well-deserved according to my bread. Image from winenews.it

 

Michele Ferrero is credited for steering the family owned company founded by his father, Ferrero SpA, to tremendous growth and success. Despite that growth, the company remained closely held and – some say – secretive. The company has also avoided acquisitions and has fended off multiple offers from other confectionary giants Nestle SA and Mars Inc.

Aside from Nutella, they also make Ferrero Rocher and tictac. All three are very popular products here in the Philippines.

Ferrero most loved products
There’s nothing here that I don’t like. Ferrero’s most love products. Image from ferrero.com

 

Because of Nutella, Ferrero SpA has become the world’s greatest consumer for hazelnuts. The company buys around 25% of the world supply.

In 2014, because of weather conditions, the price of hazelnuts went up significantly.

Hazelnut expensive prices 2014
Hazelnuts being expensive is not news to me, which is why I prefer it in the cheaper Nutella form. Image from bloomberg.com and foodnews

 

What drove the price of hazelnuts even more? The world demand for Nutella.

Global Nutella sales
I’m partly responsible for this. Image from bloomberg.com and euromonitor

 

Why am I relating Nutella with Vegemite? When I travelled to Malaysia last year and stayed at the Sheraton Imperial in Kuala Lumpur, this is what part of the breakfast spread looked like:

Nutella and Vegemite in Sheraton Imperial KL
Look at the lower left hand corner. There’s a bottle of Nutella (back-facing) and Vegemite. On that day, I chose the Vegemite. Big mistake! Image by spaceofjase

 

For those who haven’t tasted Nutella, imagine how it tastes if it’s made from creamy chocolate and hazelnut. Probably pretty good, right?

Use the same imagination for Vegemite. It is made from brewer’s yeast – concentrated yeast.

On the bright side, one can easily mistake it for a chocolate spread – like Nutella. If you want to prank your friend during breakfast, letting that person spread a large amount of Vegemite on his bread will yield a lot of laughs. You can then fakingly say “I though that was Nutella!”.

Vegemite with bread
If it looks like Nutella, it should taste like Nutella, right? You’re in for a big surprise. Image from sun2moon.org

 

How do I describe the taste of Vegemite? This kid sums it up:

An American kid tasting Vegemite for the first time
Kids say the darndest things. I agree with him here. Image by buzzfeed.com from React Channel on youtube

 

After tasting the bread with Vegemite on it, I asked myself “Who eats this stuff?”. Apparently, the Australians do. In fact, Vegemite is an iconic Australian spread.

Here is how the Vegemite website say about the product under the heading “The Spread We Love”

“It’s carried in the suitcases and backpacks of Australian travellers, as a small reminder, and a small taste, of home… There’s a reason over 22 million jars of VEGEMITE spread are sold every year and it’s because there’s no other concentrated spread out there so full of Vitamin B and nutrients, so pleasing to the palate and so intrinsically linked with Australia’s past and future as the VEGEMITE brand is.”

 

Do Australians really carry Vegemite in their suitcases? That’s like saying Filipinos like me bring balut in their luggage. Anyway, having tasted Vegemite, I take issue with the words “pleasing to the palate.”

Last month, Rustan’s Supermarket here in the Philippines commemorated Australia Day (January 26). They had a display of Australian groceries. What I saw? Vegemite, Vegemite! It’s being sold for around PHP 530 (US$ 12). I didn’t buy it. I could have though, but it’s too expensive for a prank prop.

Australian products Rustans Supermarket
Somewhere in that pile of groceries, there is Vegemite! Image from Rustan’s Supermarket FB page

 

Vegemite was created by Cyril Percy Callister, a chemist/food technologist, in Melbourne in 1922. He died in 1949. Was he remembered in his death the same way that Michele Ferrero is being remembered this week? He probably was. Like Ferrero, he created something iconic, enduring, and loved by millions.

Let’s face it, Nutella and Vegemite are both iconic, they just taste a lot differently.

 

 

– finance MD

thefinancemd.com

*To comment, just type away. NO need to type your name and email

 

 

 

 

 

 

 

Advertisements

Published by

Finance, M.D.

Finance, M.D. is a practicing physician who dabbles in finance and investment. He has passed all three levels of the Chartered Financial Analyst (CFA) exams, all in his first attempts. thefinancemd.com

2 thoughts on ““Spread” the Love: The Creator of Universally Loved Nutella Dies; Meanwhile, the World Still Hates Vegemite”

To comment just type away. NO need to fill-in your name and email. It may take a while for your comment to appear.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s