“You can take my legroom, but you can never take my Biscoffs”
– Angry United passenger after Biscoff’s was canceled in 2020
arvy’s teaser: A caramelized cookie became a cult brand, a family kept control, and a business quietly compounded into an empire. Lotus Bakeries proves that legacy, taste, and discipline can bake outsized returns.
Lotus Biscoff.
You know exactly what I’m talking about.
And if you don’t — just glance at this week’s cover, then sprint to the nearest supermarket and try one. Calling them “delicious” barely does them justice. Let one melt in your mouth and you’ll get it. Wondering when you’re supposed to eat one? Just look at the name: “Biscoff” = biscuit + coffee. A clever hint that this treat was made to be your coffee’s best friend. In a world obsessed with the next big thing, flashy tech unicorns and the latest disruptors, there’s a humble cookie company quietly baking its way into your heart (chart 1).
Enter a Belgian, family-owned business.
Lotus Bakeries.
Chart 1: Lotus Bakeries’ Brand Portfolio
Source: Quartr, Lotus Bakeries
Family Business in the Third Generation
50%.
That’s how much of Lotus Bakeries is still owned by the Boone family.
Founded in 1932 in Belgium, Lotus has grown into a globally loved brand — and today, it’s run by founder Jan Boone’s grandson, Jan Boone Jr., now the third generation at the helm.
Lotus Bakeries is the textbook case of a family-run business — and a prime example of why these companies often outperform over the long term (chart 2).
Ownership structure. Aligned incentives. Long-term thinking.
The exact traits we look for in a “Good Story.”
For Lotus, that long view started with quality. Since day one, when Jan Boone Sr. and his brothers Emiel and Henri created the first caramelized biscuit using all-natural ingredients, quality has been the north star.
That was their anchor of consistency.
But it didn’t stop there.
A brilliant strategic play came in the form of partnerships — particularly with major airlines like United Airlines and Delta Airlines. By making Biscoff part of the in-flight coffee break, Lotus baked itself into the routines of millions of travelers. On a global scale.
That was their moment of vision.
And it paid off.
Big time!
When United Airlines briefly pulled Biscoffs from its flights in 2020, passengers revolted. One summed it up perfectly: “You can take my legroom, but you can never take my Biscoffs.”
Another story with Lotus circulating on the net? The Biscoff cheesecake went viral on social media – and I tried it myself. The verdict? Simply heavenly.
Now that’s product-market fit.
The result of all this?
Chart 2: Family-owned companies outperform over the long term
Source: Credit Suisse Research, Refinitiv
A Widening Portfolio
Lotus Bakeries has delivered an impressive 10% annual revenue growth for 35 years — powered by product quality and smart acquisitions (chart 3).
Today, its portfolio is structured into three distinct segments, each with its own identity and growth path: Lotus Biscoff, Lotus Natural Foods, and Lotus Local Heroes.
Together, they reflect a multi-pronged strategy to capture diverse market opportunities and shifting consumer preferences.
The standout?
No surprise — it’s Lotus Biscoff.
With a 16% compound annual sales growth over the past decade, it’s now the company’s crown jewel, accounting for 54% of branded revenue. And Lotus has bold ambitions: turning Biscoff into a top 3 global cookie brand. This puts Lotus in the same league as the true market leader Oreo and Chips Ahoy! – both of which belong to Mondelēz International.
The remaining revenue comes from:
- Lotus Natural Foods (24%) – with health-forward brands like Nākd, TREK, BEAR, and Kiddylicious, and
- Lotus Local Heroes (22%) – rooted brands like Dinosaurus, Annas, Peijnenburg, and Snelle Jelle.
Through acquisitions — including the cluster of natural food brands (Nākd, TREK, BEAR) acquired in 2015 — the company has shown clear intent: Lean into the fast-growing, health-conscious snacking space. That could provide further tailwinds, as consumer trends shift toward “better-for-you” products.
And with a stunning 26.2% annualized stock return over the past 20 years, turning a €10,000 investment into €1,050,000 — it’s clear the founding family isn’t just holding the line. They’re compounding and want to benefit from the global cookie market, which is growing by 6% a year.
But the market sees this “Good Story” too.
With a P/E above 40, Lotus trades at a steep premium — nearly double that of peers like Nestlé (20) or Mondelēz (22).
Which means: there’s little room for error.
Chart 3: The financial rise of Lotus Bakeries
Source: Quartr
Margin of Safety is Razor-Thin
Occasionally, markets swing from excessive pessimism to excessive optimism.
In the case of Lotus Bakeries, it wasn’t pessimism that caused waves — this company has delivered consistent performance for decades, baking delicious cookies day in and day out.
But optimism, perhaps even FOMO (Fear Of Missing Out), certainly took over in 2024. The stock surged more than 50%, pushing its valuation to an eye-watering P/E of 60 — double its own 10-year average of 30.
That left a razor-thin margin of safety.
So, when a few cracks appeared — a slight revenue miss in H1 2024 and uncertainty around its new Thailand facility — sentiment flipped, and the “Good Chart” turned sour. The stock fell nearly 40% under heavy selling pressure.
Today, valuation is much more grounded, closer to its historical norms.
Or, in Lotus Biscoff terms: the coffee’s no longer scalding hot — and soon, not just the biscuits…
…, but also the stock might be ready to enjoy again.
Chart 4: Lotus Bakeries over the last ten years
Source: TradingView
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