Candy giant Ferrero adds American twists to Nutella, Ferrero Rocher to fuel U.S. growth

Containers of Nutella hazelnut spread made by Ferrero are on display in San Anselmo, California, on March 27, 2024.

Ferrero North America is making changes to its popular products, such as adding peanuts to Nutella, transforming Ferrero Rocher spheres into squares, and introducing Dr Pepper flavor to Tic Tacs in an effort to attract more U.S. consumers.

The confectionery company announced its lineup of new items before the annual Sweets and Snacks Expo in Indianapolis. They plan to showcase their largest selection of new products, including Butterfinger Marshmallow and Crunch White, at the trade show.

Having entered the North American market almost 50 years ago, Ferrero began investing more significantly in the region in the past decade. They have brought some of their global brands to the U.S., like Kinder Bueno and Joy eggs.

Through various acquisitions like Fannie May, Ferrera (owner of Brach’s), Nestle’s U.S. candy business, and Wells Enterprises (owner of Halo Top), Ferrero has expanded its presence in the U.S. candy market. It has become the third-largest candy company in the U.S., behind Hershey and Mars, according to Evercore ISI.

The company is striving to increase its market share in the U.S. through innovative products tailored to American consumers. Ferrero plans to add an American twist to its global and U.S. brands to appeal to the American market.

Ferrero is set to launch new variations of its renowned products. Ferrero Rocher candies will be transformed into square shapes with a chocolate shell, hazelnuts, and a creamy filling, available in different flavors. In addition, Nutella will introduce a new flavor, Nutella Peanut, combining cocoa, hazelnut, and roasted peanuts, expected to hit store shelves next spring.

The company is investing $75 million in manufacturing Nutella Peanut at its Illinois plant and expanding its Ontario facility for producing Ferrero Rocher chocolate squares and Nutella Biscuits. Ferrero is also sourcing hazelnuts from Oregon to localize its supply chain for Nutella and Ferrero Rocher production.

Ferrero’s long-term strategies, including investments in the U.S. supply chain and marketing initiatives, have positioned the company for growth in the American market. They are planning significant marketing campaigns, hinting at prominent advertising during major sporting events like the Super Bowl and World Cup in the coming years.

Michael Lindsey, president and chief business officer of Ferrero North America, emphasized the importance of localizing the supply chain and adapting products to cater to American consumers’ preferences.