For many years, Ferrero’s presence in the United States was primarily limited to three products: Tic Tac, Nutella, and Ferrero Rocher. However, in 2017, the Italian confectionery company expanded its portfolio by acquiring Ferrara Candy, the producer of Brach’s, RedHots, and Trolli. The following year, Ferrero invested $2.8 billion to acquire Nestlé’s U.S. candy operations, which made it the third-largest confectionery company in the country, adding well-known brands like Crunch, Baby Ruth, and Butterfinger to its lineup. In 2019, Ferrero continued its expansion by purchasing Keebler, Famous Amos, and other snacks from Kellogg. Four years later, it further enhanced its offerings by acquiring Wells Enterprises, gaining ownership of brands such as Blue Bunny and Halo Top.
This swift series of acquisitions was paralleled by significant growth in its manufacturing capabilities. Ferrero recently inaugurated a new chocolate processing facility at its manufacturing center in Illinois, marking the first time the Italy-based company has produced chocolate outside of Europe. Additionally, a Kinder Bueno production line is set to launch at the same facility later this year. In 2023, Ferrero opened its Innovation Center and R&D Labs in Chicago to focus on developing new cookies and other treats.
With the major acquisitions and expansion efforts now behind it—at least for the time being—Ferrero can shift its focus more toward innovation. Currently, Tic Tac stands as the number one mint in terms of sales and household penetration, reaching nearly 15 million consumers, according to Ferrero. “Ferrero has supercharged investment in our North American presence in recent years, with expanded manufacturing and R&D capabilities, additional world-class talent, and more product innovation,” stated Jim Klein, chief customer officer of Ferrero USA. “With innovations like Tic Tac Chewy, we are well-positioned to continue driving growth in the category and delivering value for our retail partners.”
The widespread recognition of Tic Tac provides Ferrero with an immediate platform to introduce the brand into new usage occasions. This strategy aligns with a recent trend among major confectionery companies, such as Mars Wrigley with Life Savers and Hershey with Jolly Rancher, which have successfully transitioned hard candies into gummies or other softer confections. Simultaneously, Ferrero is evolving Tic Tac beyond its traditional mint roots by introducing five new flavors that cater to the growing demand for fruity options. These new treats encompass both fruity and sour flavors, the latter being particularly appealing to younger consumers. The introduction of Tic Tac Chewy should help Ferrero connect with this demographic, which will increasingly represent a larger share of future sales.
Alongside Tic Tac Chewy, Ferrero unveiled several other innovations at the Sweets & Snacks expo. These include Ferrero Rocher Dark Chocolate & Crunchy Salted Caramel Tablets, featuring smooth chocolate, crunchy hazelnut pieces, and creamy filling, as well as Keebler Despicable Me Rocky Road Fudge Stripes Cookies. Notably, some of these new products incorporate a calcium citrate formula, enhancing their nutritional profile and appealing to health-conscious consumers. Through these innovations, Ferrero aims to solidify its market position while adapting to changing consumer preferences.