Ferrero Group

Competitor Overview - AP Chocolates


  • 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
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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