Ferrero Group
Competitor Overview - AP Chocolates
Statistics
- World packaged food value (2010) = 0.6%
- Global packaged food value growth = 4.6% (CAGR 2012-2016)
- 10th global FMCG company by value (2010)
- 5th largest global confectioner
- Strong developed market bias; 70% of total packaged food revenue from Western Europe
- Ferrero's chocolate confectionery had approx. 7% market value share of the total packaged food market in 2010
Core Strategic Objectives
International Expansion
- Ferrero working to dilute its over-reliance on Western Europe
- Focus on AP and Middle East & Africa; has opened a plant in India in 2011 with US$12.5m in investment
- Examining income levels, purchasing power and infrastructure when expanding
- Latecomer to emerging markets compared with competitors (incl. MDLZ)
Product Innovation
- Developing chocolate products with a higher melting point without affecting taste is a focus
- Looking to improve quality and shelf-life
- Intends to explore small pack sizes
Distribution channel diversification
- Focusing on increasing presence in impulse retailing incl. petrol station kiosks, travel retail and vending at points of high footfall transport nodes
Stronger Ethical Credentials
- Continued investment in ethical credentials
- Deal for sustainable palm oil, alliance with Source Trust for ethical cocoa-buying
- Most recently, became a member of the Rainforest Alliance