Ferrero Case Study

Ferrero is an Italian manufacturer of branded chocolate and confectionery products. This multinational enterprise was founded in 1946, in Alba, Piedmont, Italy, by Piera and Pietro Ferrero. At that time, what used to be an Italian pastry shop was converted into a confectionary factory, which would soon operate in numerous countries by implanting production sites and offices abroad. This ambitious business decision along with the ‘invention’ of the famous Nutella product, and a very efficient sales network allowed The Ferrero Group to engage in an impressive period of growth and success, making them the first Italian manufacturer in the confectionary sector to achieve a multinational enterprise status.
The first plants established outside

Market Analysis

The multinational food and beverage industry has had to face new challenges in the recent years due to many factors ranging from new consumer trends to healthier and safer regulations imposed by legislative organisations and nations.

In order to cope with these challenges many of the largest companies in the industry have worked together within the International Food and Beverage Alliance (IFBA). The main purpose being to accentuate each company’s implication in providing better quality and healthier products to consumers, along with agreements regarding the advertising of their products to children around the world. Efforts were mostly done by the participating members towards packaged foods and soft drinks in the industry as a whole, a subcategory in which The Ferrero Group falls into, providing confectionary to its consumers. Overall, with the participation of all its members and the collaboration of other major multinational food and beverage companies, the IFBA’s commitment to improve the health of the public remains an unfinished project: The top ten members of the alliance only represent 13% of global packaged food sales. (Global Packaged Food Company Shares 2009 (Euromonitor, 2011)) (Globalization and