Ferrero changes Nutella, Ferrero Rocher on the American market

Ferrero North America adds peanuts to its Nutella, transforming its Ferrero Rocher spheres into squares and adding a pepper flavor from Dr to TIC TACs, all in the hope of winning more American consumers.

The confectioner announced his list of new products before the annual sweets and snacks, which starts on Monday in Indianapolis. The company plans to display its largest range of new products, such as Butterfinger Marshmallow and Crunch White, during the commercial event.

Ferrero, which has been founded in Italy but which is now based in Luxembourg, has entered North America almost half a century ago, but the company has really started to invest in the market in the last decade. He recently brought some of his world brands to the United States, such as Kinder, Kinder Buenos and Joy Eggs manufacturer.

Ferrero has also expanded its American activities thanks to a series of acquisitions: Fannie May, the owner of Brach Ferrera, the American candy companies in Nestlé and the owner of Halo Top Wells Enterprises. The Nestlé in particular agreement brought the nerds, butterflies and raisins to the Ferrero wallet.

Ferrero has become the third largest American candy company, dragging only Hershey and Mars, according to Evercore ISI. But to fill the gap, he still has a lot of ground to cover. Ferrero RocheR owned 2% of the market share of American chocolate in the 12 weeks finished on April 6,, According to the bank, citing Circa data. It is below the two figures held by the homonymous candy of Hershey and that of Reese, as well as the M&M of Mars.

“”[Executive chair] Mr. Ferrero was very clear: the United States is the largest market in the world, it is the most important market in the world. We will win in the United States, “Michael Lindsay, president and business director of Ferrero North America, told CNBC.

While candy companies listed on the stock market like Hershey And Mondelez According to the company. His private mother company saw an increase of 8.9% in turnover – or income – during the year ended on August 31, revealed Ferrero.

Now, the company focuses on organic growth thanks to innovation intended to use American consumers.

“You have to Americanize it at some point to reach this next level of love with the American consumer,” said Lindsay. “In a very simple way, our strategy consists in taking these global power brands, or the recently acquired American power brands, then presenting you an American touch that the consumer here has not seen before and, hopefully, will eventually love.”

Ferrero plans to bring American twists and turns to many of its largest products.

Its emblematic candies of Ferrero Rocher will turn into squares with a chocolate shell, hazelnuts and a creamy garnish. The product will be available in at least five varieties – milk, dark, white, caramel and matching – and will release shelves in September.

Ferrero Rocher is not the only brand to obtain a dramatic addition.

For the first time in six decades, Nutella will present a new flavor: Nutella Peanut. Propagation mixes the taste of cocoa and classic Nutella hazelnut with roasted peanuts. He will take out the shelves from the grocery store next spring.

Although the product will first launch in the United States, Lindsay said it already appealed to calls for international colleagues excited by the new flavor.

“I guess it will do very well, then as soon as we can start, we will start to ship abroad,” he said.

Given the existing preferences for peanuts and Nutella, Lindsay expects Nutella peanuts to be a huge success in Southeast Asia and the Persian Gulf. Saudi Arabia has the consumption of Nutella per capita the highest in the world, according to Lindsay.

Ferrero invests $ 75 million to support the manufacture of Nutella Peanut in its existing factory in Franklin Park, Illinois. The company also extends a production plant in Ontario, Canada, to support the production of Ferrero Rocher chocolate squares and Nutella cookies.

Ferrero also cultivates hazelnuts in Oregon while it moves to locate its supply chain for the nut, a key ingredient for Nutella and Ferrero Rocher.

The company's investments in its North American supply chain were in place before the Trump administration prices on dozens of countries, but the timing is fortuitous.

“This has been underway for several years and has been part of our long -term strategy for Mr. Ferrero when he entered the American market about 10 to 15 years ago … Recent events obviously made even more important than we locate the supply chain,” said Lindsay, adding that the company went from 300 US employees a decade ago today.

And Ferrero's American investments are not limited to its supply chain. Lindsay said the company planned to start “becoming very great” on the marketing of its brands.

“In fact, without spoiling it too much, you can expect to start seeing us in the biggest sporting events in the world, from next year, say, let's say, February 26, then in the summer of 26,” he said, alluding to marketing thrusts during the Super Bowl and the World Cup.

After all, what could be more American than football?