Italian confectionery company, Ferrero has become an indelible part of Australia’s grocery industry since entering in 1974, building a portfolio of brands including Ferrero Rocher, Kinder, Nutella and Tic Tac into household names around the country.
But the real story of Ferrero is about a lot more than producing delicious confectionery. It is about a small family business that started as a pastry shop in Alba, Piedmont in 1946 and is now the world’s third-largest confectionery company with 47,000 employees and a portfolio of more than 35 brands produced in 32 factories.
The story of the company’s local success is grounded in family values, a concept of community and a culture of innovation. Locally, Ferrero employs 300 people across Australia and New Zealand, and has a manufacturing plant in Lithgow, regional NSW, that opened in 1976 – the company’s first factory outside Europe. It is here that the iconic Nutella spread is made, before being shipped around Australia, New Zealand and into East Asia.
“Ferrero has come a long way globally, always keeping sight of our family heritage which has given us an unwavering commitment to quality and passion for innovation, complemented by a strong belief in protecting our planet and supporting communities,” observes Massimo D’Ambrosio, MD for Ferrero Australia.
“Over the years we have built some of the most loved brands in Australia and worldwide. But it is important to note that for Ferrero, quality is truly at the heart of everything we do – not only in Australia and New Zealand but globally.”
Responsible sourcing
Ferrero’s products are always made from high-quality ingredients, sourced responsibly and transparently. This is key to ensuring the taste and freshness of its products. The concept of ‘Sacco Conosciuto’ – knowing where raw materials come from – informs Ferrero’s commitments to sustainability and traceability.
More than 90 per cent of Ferrero’s main ingredients are traceable back to origin, with standards and certifications. Ferrero sources its cocoa from farmers who are independently monitored for sustainability standards by organisations such as the Rainforest Alliance, Cocoa Horizons, and the Fairtrade Foundation. 93 per cent of the cocoa beans Ferrero sources are fully traceable right back to the farm that produced each bean.
A long-term member of the World Cocoa Foundation (WCF), the International Cocoa Initiative (ICI), and a founding member of the Cocoa & Forest Initiative, Ferrero works to improve the lives of cocoa farmers, co-operatives, and communities. It pays a cash premium to farmers on top of the commercial price for the purchased cocoa, to improve farmer livelihoods.
The company was also one of the first in the world to implement an RSPO-certified supply chain for palm oil in 2015, and progress has been made year after year to improve traceability. Today, Ferrero ranks second on the World Wildlife Fund’s Palm Oil Buyers Scorecard which evaluates 227 global companies.
Furthermore, in partnership with the non-profit Earthworm Foundation, Ferrero developed a Palm Oil Charter which goes beyond RSPO requirements to include traceability, respect for workers’ rights, the maintenance of areas of high conservation value and the protection of endangered species. Through this partnership, it uses satellite technology – Starling – to monitor changes in land coverage, to help ensure a deforestation-free, exploitation-free palm oil supply chain.
Innovation drives excellence – and helps the environment
At any one time, Ferrero researchers are working on more than 100 new products, but only the best make it onto retail shelves – those that the company is confident it can produce expertly and efficiently and will continue its legacy. A dedicated research and technology company within the Ferrero Group oversees centres of innovation located in Chicago, Singapore, Italy and Luxembourg.
“We are always looking to create new unique products,” says D’Ambrosio. “We combine our commitment to quality with a culture of innovation to deliver unique tasting experiences.”
Take for example the way Ferrero selects its hazelnuts – a core ingredient of Nutella and some of its confectionery range. There are more than 300 varieties of hazelnuts around the world, but Ferrero – which buys around 25 per cent of global production – uses just 12 of those. The company then measures the size of each hazelnut to ensure that each hazelnut at the centre of every Ferrero Rocher is the same diameter, ensuring the best possible taste experience every time.
That same culture of innovation is behind an exemplary roster of achievements in sustainability and environmental commitment.
Globally, Ferrero plans to use 100 per cent renewable electricity across all its plants – currently, it is at 86.6 per cent. At the Lithgow factory, rooftop solar power supplies about 20 per cent of the plant’s needs and an investment in water technology has reduced usage by 32 per cent during the past year. By 2030, Ferrero has pledged to halve emissions across its operations and reduce emissions intensity by 43 per cent across its operations and supply chain, (against a 2018 baseline).
Finally, the company has pledged to design 90 per cent of its packaging to be recyclable, reusable or compostable, including for newly acquired businesses. In Australia, it supports the National Packaging & Recycling Scheme as a circular economy solution for soft plastics.
All these initiatives signal Ferrero’s respect for the environment, its suppliers and its customers.
“We believe quality is the highest form of respect to the consumer, so we never take quality for granted, from how we source our ingredients to the finished products our customers enjoy here in Australia and all around the world,” says D’Ambrosio.
“As we have grown over the years, we have never lost sight of our strong family values, which comes with an ethos recognising that global success requires global responsibility.”
- From a small family pastry shop to some of the world’s most loved brands, Ferrero is always exploring ways to bring moments of joy to families, with quality at the heart of everything it does. Find out more here.
