Ferrero SpA, more commonly known as Ferrero Group, is an Italian manufacturer of branded chocolate and confectionery products and it is the second biggest chocolate producer and confectionery company in the world. It was founded in 1946 in Alba, Piedmont, Italy, by Pietro Ferrero, a confectioner and small-time pastry maker who laid the groundwork for Nutella and famously added hazelnut to save money on chocolate. The company saw a period of tremendous growth and success under Pietro's son Michele Ferrero, who in turn handed over the daily operations to his sons. His son Pietro Jr., who oversaw global business, died on April 18, 2011, in a cycling accident in South Africa at the age of 47. The Ferrero Group worldwide – now headed by CEO Giovanni Ferrero – includes 38 trading companies, 18 factories, approximately 40,000 employees and produces around 365,000 tonnes of Nutella each year. Ferrero International SA's headquarters is in Luxembourg. Ferrero SpA is a private company owned by the Ferrero family and has been described as "one of the world's most secretive firms". Reputation Institute's 2009 survey ranks Ferrero as the most reputable company in the world. The company's financial results for the fiscal year ending August 31, 2016, showed consolidated sales growth of 8.2% from the previous fiscal year.
History
In 1946, Pietro Ferrero invented a cream of hazelnuts and cocoa, derived from gianduja and called it Pasta Gianduja. The initial product came in solid loaves wrapped in aluminium foil, which had to be sliced with a knife, and was succeeded by a spreadable version Supercrema. With assistance from his brother Giovanni Ferrero, Pietro Ferrero created his new company to produce and market the initial product. Following his work, Pietro was succeeded by his son Michele Ferrero as chief executive. Michele and his wife Maria Franca relaunched his father's recipe as Nutella, which was first sold in 1964. After World War II, they opened production sites and offices abroad and Nutella eventually became the world's leading chocolate-nut spread brand. Ferrero is the world's largest consumer of hazelnuts, buying up 25% of global production in 2014. The company is currently run by Giovanni Ferrero, grandson of Pietro and son to Michele Ferrero. The company places great emphasis on secrecy, reportedly to guard against industrial espionage. It has never held a press conference and does not allow media visits to its plants. Ferrero's products are made with machines designed by an in-house engineering department. In 2014, Ferrero acquired Oltan Group, the largest hazelnut supplier in the world. Ferrero acquired the British chocolate retailer Thorntons in June 2015 for £112 million. In 2016, Ferrero SpA acquired Belgian biscuit brands Delacre and DeliChoc from United Biscuits. In March 2017, Ferrero SpA bought the chocolate makerFannie May from 1-800-Flowers.com. The deal closed on May 30, 2017, and Ferrero paid $115 million. Ferrero mentioned that they hope to expand Fannie May as a whole. They want to provide Fannie May locations across the nation, not just in Chicago. On 30 March 2017, it was announced that Lapo Civiletti will be the first non-family CEO in the history of the company and will take up the role from 1 September, while Giovanni Ferrero will become the executive chairman focusing on long-term strategy. In October 2017, Ferrero announced to acquire the Ferrara Candy Company, and the acquisition was completed in December that year. On 16 January 2018, it was reported that Ferrero was purchasing Nestlé's American confectionery business for $2.8 billion. The deal includes such brands as Baby Ruth, Crunch Bar and Butterfinger but does not affect Nestlé's confectionery business elsewhere, and does not include Kit Kat or the Toll House baking line. The acquisition was completed in March 2018. On 1 April 2019, it was announced that Ferrero will further expand its US business to purchase a collection of business owned by Kellogg's. Included in the deal will be Kelloggs' cookies, fruit and fruit-flavoured snack, ice cream cone and pie crust businesses and will involve famous brands such as Famous Amos, Murray's, Keebler, Mother's and Little Brownie Bakers, "as well as a leased manufacturing facility in Baltimore, Maryland"; "six owned food manufacturing facilities" in Louisville and Florence, Kentucky; Augusta, Georgia; Allyn, Washington and "two plants in Chicago, Illinois". Ferrero is paying Kellogg's $1.3 billion for the deal. On 29 July 2019 the acquisition was completed. In July 2019, a subsidiary of Ferrero agreed to buy Campbell Soup Company's stake in the danish bakery, Kelsen Group for $ 300 million. The transfer was completed early 2020.
Products
Ferrero produces several lines of confectionery goods under various brand names, as well as the chocolate-hazelnut spread, Nutella. The production of Nutella uses one-quarter of the world's annual hazelnut supply. It also produces the line of Ferrero branded chocolate products, including Pocket Coffee, Mon Chéri, Confetteria Raffaello, Ferrero Küsschen and the Ferrero Prestige line, which comprises three different brands of pralines: Ferrero Rocher, Ferrero Rondnoir, and Garden Coco. Ferrero's Kinder brand line of chocolate products include Kinder Surprise, Kinder Joy, Kinder Chocolate, Kinder Happy Hippo, Kinder Maxi, Kinder Duplo, Kinder Country, Kinder Délice, and Kinder Bueno. The company also produces Tic Tac candy, available in mint, cinnamon, and fruit flavors, along with sugar free versions. Other Ferrero products include Giotto, Fiesta Ferrero, Hanuta chocolate hazelnut-filled wafers and Gran Soleil frozen desserts, which won the company an innovation award in March 2011. Ferrero has been producing Thorntons products since acquiring the company in 2015.
Philanthropy
In 1983, the company established the Ferrero Foundation in Alba, Piedmont at the wish of Michele Ferrero. The foundation promotes activities in the areas of art, science, history and literature by organizing conventions, conferences, seminars and exhibitions. It also offers health and social assistance to ex-employees of the group for at least 25 years.
