Meet the Albrechts, the highly secretive heirs to the Aldi fortune, who are worth $38.8 billion, own Trader Joe's, and have kept a famously low profile for decades

Meira Gebel

Mar 7, 2019, 01:22 IST

ALDI Einkauf GmbH & Co. oHG via Getty Images

After World War II, brothers Theo and Karl Albrecht found their mother's corner grocery store in Germany still standing - so they ran with it, transforming Aldi into an international supermarket chain.
Throughout the decades, Aldi became one of the most profitable retail chains, with over 5,000 stores across Europe and the US. In 1979, Theo bought Trader Joe's, the low-cost grocery store.
The Albrecht family is historically secretive, and there is a lot left unknown about the family's personal lives. What is known, however, is their net worth: $38.8 billion.

Theodor and Karl Albrecht took their mother's thrifty corner store, still standing in Essen, Germany after World War II, and turned it into a low-cost supermarket chain that today spans over a dozen countries across Europe and the US.

Aldi, short for Albrecht discount, has become such a stakeholder in Europe that other chains like it, including Walmart, have never been able to get a foothold. In 2017, CNBC estimated Aldi made over $13 billion in the US alone.

Little is known about the Albrechts. They don't speak to the press, or attend openings of their stores. According to a German newspaper, the family does not own vacation homes, private jets, or yachts, but instead have chosen to live in seclusion, keeping just a couple thousand euros in their bank account.

What is known, however, is their net worth: $38.8 billion, according to Bloomberg.

Here's how the Albrecht family got started and what we know about them:

In 1913, the Albrecht family opened a corner grocery store in Essen, Germany. After World War II, brothers Karl and Theo took over the business in 1946, opening dozens of stores and renamed it Aldi — short for Albrecht Discount.

By 1953, there were over 30 Aldi stores across Germany.

In 1960, Karl and Theo, after a disagreement about whether to sell cigarettes, split Aldi in half: Aldi Süd and Aldi Nord. Karl would operate stores in southwest Germany, the U.S., U.K., Australia and Eastern Europe, while Theo took the northern part of West Germany, western and southern Europe.

Eleven years later, in 1971, Theo was kidnapped and released after being held for 17 days. The Albrecht family paid over $2 million for his return.

The kidnapping rattled the family, and afterward, Theo led an increasingly private life. He did, however, apply for tax relief from the ransom payment as a business expense.

Little to nothing is known about Theo and his brother, Karl. They never granted interviews or made public statements about their wealth or businesses. Theo, however, was known to collect wild orchids and golf frequently.

The Albrechts had "fortress-like" homes along the hillsides near the Ruhr Valley in Essen.

Karl Albrecht was also a big fan of golf, too. He built Der Öschberghof, an 18-hole golf course in the southwestern region of Germany near the Black Forest in the 1970s.

Aldi only offers a select number of private-label brands, and according to The New York Times, products would often be displayed "on wooden pallets in the cardboard boxes in which they were delivered."

This type of discounted goods store flourished in West Germany as the country attempted to crawl out of economic ruin following the war.

Because of its below-average price model, Aldi markets were able to dominate in Germany.

As Aldi supermarkets spread across Europe, it became impossible for other would-be competitors like Walmart to even get a foothold in the region.

Today, there are over 10,000 Aldi stores across both branches.

In 1979, an Albrecht family trust bought specialty store Trader Joe's. However, the company remains mum on who actually owns it, refusing to comment on the Albrecht family whenever asked.

Albrecht grew Trader Joe's into a nationwide chain and low-cost grocery staple with nearly 500 stores today in the US and $13 billion in annual revenue.

In 2010, Theo Albrecht died at 88, leaving Aldi Nord to his two sons, Berthold and Theo Jr. Albrecht's net worth was $16.7 billion at the time of his death.

Karl Albrecht, once the richest man in Germany with a personal net worth of $26 billion, died on July 16, 2014 at 94.

Theo Jr. went on to break the Albrechts decade-long silence to call out his sister-in-law Babette, who went against the family rules by spending millions on vintage cars and art after the death of her husband, Berthold.

In 2016, Berthold's will came into the spotlight for excluding Babette and children from control of Aldi Nord — worth over $22 billion. She fought her late husband's decision in court, saying he was not competent enough to make a will because of an "alcohol-related illness."

Babette and her children, who have never been publicly named, get over $36 million a year from the family trust after Theo Jr. offered to end the public dispute.

Albrecht's son and daughter, Karl Jr. and Beate, inherited half of the Aldi fortune after his death and sit on the company's board. Karl Jr. has no children, while his sister has six. Both continue in their father's tradition of being notoriously reclusive.

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