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Insight of the Day: Ferrero says freshness and flavours key to ensure lasting power for chocolate brands

Findings:

  • Ferrero is a successful international chocolate brand in China, attributed to strong local investments and focus on product freshness, food safety, and flavor variety catering to local tastes.

  • Chinese market has a preference for very dark chocolate (90% cocoa and above), but Ferrero identified a lack of balance in taste and launched Rocher Origins dark chocolate range with lower cocoa content and diverse single-origin flavors.

  • Ferrero invested over CNY2 billion in a state-of-the-art factory in Hangzhou to ensure maximum product freshness for Chinese consumers and export to other markets.

  • The Hangzhou factory is Ferrero's largest in North Asia, with full ISO certification and a national food safety laboratory for quality and safety assurance.

  • Ferrero emphasizes portion control as its main healthier consumption strategy, using individual packaging and calorie labeling on each item to help consumers manage their intake.

Key Takeaway:

Ferrero's success in China is due to its understanding and adaptation to the local market, investing in freshness, flavor variety, food safety, and promoting healthier consumption through portion control.

Trend:

The trend is towards premium, individually packaged chocolates with diverse flavor profiles, catering to the growing demand for both indulgence and healthier options in China.

Who is it about?

The article is about Ferrero, a successful international chocolate brand, and its strategies to cater to the Chinese market.

Description of consumers/product:

  • Consumers: Chinese consumers who prefer very dark chocolate but also seek a balance of indulgence and healthier options.

  • Product: Ferrero's Rocher Origins dark chocolate range with various single-origin flavors, individually packaged and labeled with calorie information.

Conclusions:

  • Ferrero's focus on product freshness, flavor variety, food safety, and portion control has resonated well with Chinese consumers.

  • The company's significant investment in local production and quality assurance demonstrates its commitment to the Chinese market.

  • The success of the Rocher Origins range indicates a growing demand for balanced dark chocolate options that are both indulgent and healthier.

Implications for brands:

  • International brands entering the Chinese market need to invest in local production and understand local preferences to succeed.

  • Emphasizing product freshness, flavor variety, and food safety can be key differentiators in a competitive market.

  • Portion control and clear calorie labeling can appeal to health-conscious consumers without compromising on indulgence.

Implications for society:

  • Ferrero's success story provides a model for other international brands to adapt and thrive in the Chinese market.

  • The focus on portion control and healthier consumption can contribute to promoting better eating habits among consumers.

  • The investment in local production and job creation can have a positive impact on the local economy.

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