You may know Ferrero because of its namesake Ferrero Rocher® hazelnut chocolate treats, packaged in their iconic upscale gold packaging. But it’s much more than that—as one of the world’s largest sweet-packaged food companies, it encompasses more than 35 much-loved brands, such as Kinder®, Nutella® and Tic Tac®, sold in more than 170 countries.
Still a family-owned company in its third generation, Ferrero continues to grow, drawing on its legacy, expertise and spirit of innovation to launch fresh products and bring new brands such as Fannie May®, Butterfinger®, Keebler® and Power Crunch into its stable.
We sat down with Michael Zacharias, Senior Vice President of Trade Marketing and Category Management for Ferrero USA, to discuss the factors powering Ferrero’s growth and how it’s fostering innovation in product development, manufacturing and more, all in an effort to ensure grocers get the assortment they need to satisfy today’s consumers.
1. Expanding beyond its Italian roots, Ferrero has grown into a global enterprise. How would you characterize Ferrero’s commitment to North America?
Ferrero is deeply committed to North America, demonstrated by our ongoing investments in manufacturing, innovation and talent. Over the past five years, we’ve created more than 1,000 new jobs and expanded our facilities to better serve both consumers and retail partners.
As one example, our most recent launch of Nutella Peanut is the first time a Nutella product has been manufactured in the U.S. We’ve invested $75 million in our Franklin Park plant, right outside Chicago, to increase our capabilities in the facility where Butterfinger and Baby Ruth have been made since the 1960s.
2. What are the shopper trends you’re seeing in the market today?
Shopper behavior is evolving rapidly. Consumers are seeking new, unique flavor experiences and are drawn to brands that offer innovation and excitement. We’re seeing strong demand for limited-time offerings and cross-category flavor collaborations—trends that are especially popular with younger shoppers.
Despite economic pressures, treats remain an affordable indulgence, and shoppers continue to look for products that deliver both quality and value in what has become known as “little treat culture.”
We see them trading up in these areas: The growth in our cookies, chocolate and spreads categories is largely driven by the “premium price” subsegments as we see customers shifting more of their spend to the specialty end of treats as a form of affordable indulgence. For example, we’re seeing growth in Nutella spread and Nutella biscuits, which are welcomed as a worthy upgrade due to the value they offer a shopper. Our most recent line extension, Nutella Peanut, has been drawing rave reviews as an excellent example of how consumers are responding to offerings that are novel and exciting. They see “value” as more than cost alone, which enables retailers to earn more margin per product and provides a hedge against inflation, rather than relying on price reductions.
3. What movements have there been in the realm of acquisitions and new facilities that help bolster Ferrero and your ability to better serve grocers?
Ferrero’s recent acquisitions, such as Power Crunch, and our ongoing investments in new facilities—including a $75 million expansion in Illinois and a $445 million project in Ontario—are all about strengthening our ability to deliver innovation and supply reliability to our retail partners. These investments mean more capacity, more new products and a stronger supply chain, all of which help retailers keep shelves stocked with the latest Ferrero treats shoppers are looking for.
4. We know that grocers rely on new products to drive traffic and interest. What can you share in terms of line extensions and other product development news?
This year we introduced our largest slate of innovations ever, with about 20 new products launching. From Ferrero Rocher chocolate squares to Nutella Peanut and exciting new flavor combinations from Butterfinger, CRUNCH and Chips Deluxe, our innovation pipeline is designed to keep the cookies, candy and spreads aisles fresh and relevant. These new products are developed with North American shoppers in mind, ensuring they resonate and drive repeat purchases in stores.
5. We all laughed along at the Super Bowl ad for Kinder Bueno, the company’s first ever. And there’s more sports action to come, we hear. Why do you see sports as such a critical component of your marketing?
This year, Ferrero is making its biggest-ever investment in sports marketing, with major activations around both the Super Bowl, as you mentioned, and the World Cup. For us, it’s about extending the excitement—and therefore store traffic—with promotions. In addition to the high-profile ad we “launched” during the game broadcast, we supported the momentum with special displays and limited-edition flavors.
For the World Cup, we’ve introduced our first full-portfolio “Go All In To Win” activation, featuring about 20 brands and a robust media partnership with FOX Sports. We’re backing this with a four-month sweepstakes offering daily and weekly prizes, plus a $1 million grand prize, all tied to in-store purchases. These programs are designed to increase basket size, drive incremental trips and create buzz in your stores, giving retailers a unique opportunity to capitalize on two of the biggest cultural moments of the year.
6. What’s next for Ferrero?
We are dedicated to an ongoing commitment to retailers, which means supporting them via promotion, product and profits. Our goal is to be best-in-class to drive basket size and sales in all the categories in which we’re represented. That might mean new collabs, like our recent limited edition Dr. Pepper Tic Tac flavor, or tying into on-trend events like the World Cup as we’ve discussed. Through it all, our approach to innovation and quality will never waver.
To find out more about Ferrero brands that can help you delight your shoppers, visit Ferrero North America.
