Fererro Seeks Growth In US With Introduction Of New Products
Italian chocolate and confectionery manufacturer Ferrero is aiming to expand its activities in the US market, where it currently achieves only 6% of its revenues.
One of the main elements of its strategy, according to La Repubblica, will be the launch of a new Kinder chocolate egg. Kinder Surprise has been banned in the US as it is considered a choking hazard due to the mix of edible and non-edible parts.
From 2018, a slightly different version of the product will be sold in the US. Kinder Joy has a plastic egg-shaped packaging that splits in two - one half contains layers of cocoa and milk cream, and the other half contains a toy.
Speaking in March last year after the acquisition of premium chocolate company Fannie May, CEO Giovanni Ferrero said that the US is an important market for the company with a great growth potential.
Last month, Ferrero announced its second deal in the US, with the purchase of confectionery company Ferrara Candy, which produces brands such as Trolli gummy sweets and Lemonheads.
According to Ferrero, the acquisition will enable the company "to increase its overall footprint and product offering in the important US market, establishing a presence in new confectionary categories with attractive growth prospects, including gummy and seasonal candies."
As well as expansion into new markets, the company has also been focused on product development.
In May of this year, the Ferrero expanded its Tic-Tac brand from mints to chewing gum, and last month it announced plans to release a Kinder ice cream in 2018. The new ice cream product, developed with Unilever, will initially be available in France, Germany, Austria and Switzerland.
Ferrero Group recorded consolidated sales of €10.3 billion last year, representing 8.2% growth compared to the previous year.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine