Guest Blog: Ferrero’s expansion of US manufacturing proves strong tactical move in era of tariff uncertainty
The Kinder brand at the Ferrero stand at Sweets & Snacks Expo last year. Pic: Neill Barston
The need for re-shoring and friend-shoring supply chains has been a long time coming. Companies that adapted early to these shifts are now better positioned to weather the challenges posed by the US trade war, as demonstrated by Ferrero’s approach, as Hannah Cleland, guess poster from GlobalData research organisation examines.
As part of a decade-long strategy to grow its sales in the US, Ferrero has invested in North American production facilities and acquired US businesses such as Fannie May, Nestle’s US confectionery arm (including Nerds and Butterfingers), and Wells Enterprises (Halo Top owner). Additionally, it has introduced several of its global and European brands, including Kinder. However, its most recent US range deliberately Americanizes the flavors of some of its most iconic products, including Nutella Peanut and Dr Pepper Tic Tacs.
Ferrero’s localised tactics not only mitigate the impact of tariffs but also align with growing consumer demand for domestic products. GlobalData’s Q1 2025 global consumer survey reveals that 55% of US consumers claim political events have heightened their awareness of the country of origin of the products they purchase, underscoring the importance of country-of-origin marketing in products.* By incorporating distinctly American flavours such as peanuts and Dr Pepper into its offerings, Ferrero effectively encourages consumers to perceive its products as locally made.
This strategy resonates with consumers who are increasingly motivated by both financial considerations and a desire to support local businesses, especially during a persistent cost-of-living crisis. 61% of US consumers strongly or somewhat agree that they prefer local products due to their affordability compared to imports. *
A reactive approach to supply chain shocks is no longer sufficient. Brands must invest in long-term strategies that ensure stability and resilience in the face of unpredictable market dynamics. Ferrero’s successful localisation strategy serves as a valuable lesson for global companies navigating the complexities of trade wars and economic uncertainty.
