Ferrero SPA

    Ferrero SPA SWOT & PESTLE

    • Report

    • ID: 536036
    • 22 Pages
    • January 2023
    • Region: Europe
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    About Ferrero SPA

    Ferrero SPA, commonly known as Ferrero Group is an Italian producer of branded chocolate and confectionery products. The company was founded in 1946 by Pietro Ferrero, even today Ferrero SpA is a private company owned by the Ferrero family and has been reported as "one of the world's most secretive firms". Ferrero is headquartered in Alba, Piedmont, Italy. The Group’s products are present directly or through authorized distributors in over 170 countries. Besides, it has 38 trading companies, 18 factories, consolidated 104 companies worldwide, 31 operating manufacturing plants, and produces around 365,000 tonnes of Nutella each year. Ferrero's inexhaustible line of unique and high-quality products are the core competencies of the company. Ferrero has over 38,000 employees as of early 2023.

Ferrero groups' Mission statement reads "Our goal is to create unique products, developing innovative research and production processes as well as using our own technologies." Ferrero SPA's USP or Unique Selling Proposition sprawls in being the second biggest chocolate producer and confectionery company in the world as of 2020, renowned as "one of the world's most secretive firms", and one of the world's highly-reputed companies.

    Business Sector

    Chocolate

    Operating Geography

    Italy, Europe, Global

    Revenue

    € 12.3 billion – FY ending 31st December 2020
    € 12.7 billion – FY ending 31st December 2021 (y-o-y growth 3.4%)

    SWOT

    SWOT Matrix for Ferrero

    Strength

    Weakness

    1. 2nd largest chocolate producing company

    2. Global operational and manufacturing presence

    3. Portfolio of strong brands with each brand having a strong brand recognition

    4. Strong investment in R&D and production capacity

    5. Rapid expansion of business through strategic acquisitions

    6. Sustainability embedded along the value

    1. Price range of most of its products is on the high-end

    2. Products being investigated for the outbreak of salmonella

    Opportunity

    Threat

    1. Chocolate market is expected to grow by 4% CAGR in the next 4 years

    2. There is an increase in demand for chocolates in the developing economies

    3. Marketing and branding through sustainability initiatives such as ‘Kinder Joy of moving’

    1. A rise in health consciousness is forcing chocolate companies to come up with new products

    2. Rising competition in the chocolate industry

    Detailed SWOT Analysis of Ferrero

    The detailed SWOT analysis for Ferrero SPA is presented below:

    Strength

    This section is available only in the 'Complete Report' on purchase.

    Weakness

    This section is available only in the 'Complete Report' on purchase.

    Opportunity

    This section is available only in the 'Complete Report' on purchase.

    Threat

    1. A rise in health consciousness is forcing chocolate companies to come up with new products: The chocolate industry has been affected and touched by the trend rising health consciousness in public in the same way as all the food and beverage industry. The consumers are worried about obesity and heart disease. This has forced the companies to promote their products as the healthier version or to come up with products with less sugar, etc. This has seen a rise in offerings of dark chocolates, protein bars with chocolate, sugar-free chocolate and single-origin chocolate. Ferrero has also joined this trend and has started offering its packets in smaller sizes. Ferrero has recently acquired the British company Eat Natural to strengthen its offerings of healthier products. But Ferrero needs to do more and adapt more if it wants to continue its dominance as most of major products will fall into the category of “unhealthy” especially Nutella.

    The remaining points in this section are available in the 'Complete Report' on purchase.

    PESTLE

    PESTLE Matrix for Ferrero

    Political

    Economic

    1. Over the years, there has been continuous allegations and political crackdown against chocolate industry for employing child labour

    1. The chocolate and confectionary market is projected to grow approximately at an average of 5% CAGR around the globe

    2. There is an increase in disposable income of people all throughout the world

    Social

    Technological
    1. There is a rise in health consciousness globally

    1. Innovations are making chocolate adopt more sustainable packaging

    2. Digitalisation of supply chain has helped increase efficiency and change in supply chain

    Legal

    ENVIRONMENTAL
    1. Chocolate Industry has faced many problems due to counterfeit products

    1. Chocolate production is generally associated with a negative carbon footprint

    2. Rising temperature throughout the world can affect the production of cocoa plant

    3. Chocolate wrappers and packaging are blamed for environmental pollution

    Detailed PESTLE Analysis of Ferrero

    The detailed PESTLE analysis for Ferrero SPA is presented below:

    POLITICAL

    1. Over the years, there has been continuous allegations and political crackdown against chocolate industry for employing child labour: The chocolate industry and all the giants in it are continuously embroiled in controversy that their suppliers employ child labour and the chocolate industry is turning a blind eye to it. Mars, Nestle, and Hershey are the most recent companies who have been threatened with Child Slavery lawsuits as it has been alleged that they use cocoa harvested by children. In 2019, Ferrero also faced allegations that the hazelnut used by it in its product is harvested by children. Many reports have stated that the chocolate industry still continue to employ child labour with some of the children involved in hazardous activities. Some reports, including a report commissioned by US Department of Labor, have found that the overall proportion of children involved in the cocoa production has actually increased in the last decade. Ferrero needs to take care of this issue and become more and more transparent with regards to its supply chain as procuring materials from suppliers who employ child labour will only bring stringent political action and extreme negative PR to the company.

    ECONOMIC

    This section is available only in the 'Complete Report' on purchase.

    SOCIAL

    This section is available only in the 'Complete Report' on purchase.

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase.

    LEGAL

    This section is available only in the 'Complete Report' on purchase.

    ENVIRONMENTAL

    This section is available only in the 'Complete Report' on purchase.

    More Info

    Major Competitors

    • Mars

    • Nestle

    • Lotto

    • Mondelez

    • Hershey

    • Lindt

    Major Brands

    1. Nutella

    2. Tic-Tac

    3. Kinder

    4. Ferrero Rocher

    5. Mon Cheri

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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