Founder Elizabeth Stein Sells Purely Elizabeth to Ferrero for $800 Million
Elizabeth Stein, founder of Purely Elizabeth, will continue as CEO after the sale of her company to Ferrero for $800 million. The sale highlights the brand’s success in the natural foods industry and marks a significant milestone for its founder.
Purely Elizabeth
Seventeen years ago, Elizabeth Stein began creating muffin mixes in her Upper West Side apartment to sell to nutrition clients. Today, Purely Elizabeth’s granola and oatmeal line has become a household name, and Stein’s estimated $400 million net worth stems from the sale of the brand to Ferrero.
A triathlete, marathoner, and nutrition coach, Stein started her journey 17 years ago by baking healthy muffin mixes in her New York City kitchen. This side hustle grew into an online business selling baking mixes from her apartment and eventually evolved into Purely Elizabeth, now offering 40 varieties of granolas, oatmeals, and cereals available in supermarkets nationwide.
Elizabeth Stein’s unlikely path to success began after her races, where she promoted baking mixes to attendees. What began as a side hustle quickly expanded into an online business, eventually transforming into Purely Elizabeth, a brand known for its organic, nutrient-dense products. The company’s rapid growth, including its $250 million estimated annual revenue, made it a target for acquisition by Ferrero, the Italian chocolatier behind Nutella, Kelloggs, and Tic Tacs. While the financial terms were not disclosed, Forbes estimates the deal at $800 million, or a multiple of just over 3 times sales, including Stein’s two-thirds stake. The acquisition underscores Purely Elizabeth’s status as a leading player in the natural foods sector.
Stein, 45, who will receive $400 million after taxes, will retain her role as CEO. The deal reflects her ability to scale her brand while maintaining its values. The company, which sells a bag of granola every 0.7 seconds, has become a staple in the market. Stein emphasized that staying as CEO was crucial, stating, “It shows women can be visionary founders and scaled CEOs. I hope this inspires others to pursue both.” She also highlighted the importance of retaining leadership, noting, “It’s rare for a woman to build a scaled company and keep leadership through an exit.”
“I’m proud to show what women can achieve,” Stein said. “I know how to protect the brand, identify growth areas, and keep it close to consumers.” Her journey began in 2008 when she brought her blueberry muffins to a triathlon in Westchester, New York. The positive response led to trials, and by 2009, her muffins were a hit at the same event. Within months, she invested $5,000 in ingredients and launched a website, which sold $10,000 worth of mix within hours of its debut. Her breakthrough came when a link in a popular newsletter drove traffic, leading to a surge in orders. By 2011, she pivoted to granola, inspired by her mother’s feedback on a recipe she had experimented with. Cold-calling 40 shops and securing Whole Foods’ support helped her reach $200,000 in revenue by year’s end. Whole Foods expanded its distribution nationwide by 2013, boosting revenue to $1 million. Stein’s granola recipe, unchanged since the first batch, remains her top seller.
In 2014, Purely Elizabeth moved to Boulder, Colorado, and launched its first oatmeal, Purely Elizabeth, at Target. Walmart joined as a distributor in 2017, and the brand became the top-selling granola at natural grocers. Stein waited years before raising capital, primarily bootstrapping until she secured a $3 million Series A round from investors like General Mills’ venture arm. Five years later, a $50 million Series B round from partners such as Fresh Del Monte Produce funded production and marketing expansion. By 2024, the brand was in over 30,000 stores and projected to exceed $300 million in revenue. It also introduced its top-selling cookie granola that year.
Ferrero’s acquisition aligns with its strategy to expand into breakfast markets. The company, known for its sweet products, now aims to diversify with Purely Elizabeth’s natural offerings. Giovanni Ferrero, the family-owned firm’s CEO, expressed enthusiasm about the brand’s long-term potential. As CEO, Stein plans to preserve the brand’s quality standards while exploring new product lines and global markets. “This is a forever home,” she said. “Ferrero’s focus on generational growth aligns with my vision.”
Forbes highlights Stein’s journey as a testament to perseverance and innovation. Despite initial skepticism, her brand’s growth and impact on the breakfast category are undeniable. The sale not only secures the company’s future but also sets a precedent for female-led food businesses. Stein’s mantra, “feel the fear and do it anyway,” remains a guiding principle as she navigates this new chapter.