“Revitalizing Iconic Brands: Ferrero’s Bold Strategy to Rejuvenate Butterfinger and Other Nestlé Acquisitions”
In a bid to boost growth in some iconic yet stagnating brands within the competitive candy market, Ferrero—known for Nutella, Ferrero Rocher, and Tic Tacs—is demonstrating a readiness to undertake bold (and potentially necessary) measures to rejuvenate the candy brands it acquired from Nestlé in a $2.8 billion deal last April. However, starting with Butterfinger, a cherished brand for generations, poses a significant risk. The disastrous launch of New Coke in 1985 is a cautionary tale, as only 13% of soda drinkers expressed approval for the new formulation, prompting the company to reintroduce the original Coke as Coca-Cola Classic within just 77 days.
A less extreme yet relevant instance for Ferrero occurred when it discreetly altered the Nutella recipe in 2017, leading to threats of a boycott. In that case, Ferrero remained steadfast, and the intensity of consumer backlash eventually subsided. If fans embrace the changes Ferrero has planned for Butterfinger, it could prove to be a beneficial and profitable decision, potentially boosting sales and drawing in new customers. Preliminary taste tests suggest that the revamped recipe is likely to resonate with consumers, according to Business Insider.
Strategically, the new recipe for Butterfinger aligns with the increasing consumer demand for high-quality, real ingredients. By incorporating in-house roasted peanuts and increasing the cocoa content in the chocolate coating, Ferrero aims to attract those seeking healthier and more natural alternatives to the overly processed candy bars of their youth. Furthermore, studies indicate that consumers are drawn to salty-sweet flavors and indulgent snacks, trends that the reformulated Butterfinger is designed to capitalize on.
However, if Ferrero intends to pursue its reported plans to revitalize several former Nestlé candy bars under its ownership, it should proceed with caution. Rather than startling customers with significant changes to their beloved sweets, Ferrero might consider first reimagining the marketing and packaging associated with these products. In addition to altering its flavor, Butterfinger is also changing its label color, allowing Ferrero to gauge consumer reactions as a measure for future packaging modifications.
Packaging can wield considerable influence. For instance, Van Leeuwen, an ice cream company based in Brooklyn, New York, revamped its packaging to be more Instagram-friendly in 2017, resulting in a 50% sales increase that fall. If Ferrero can achieve similar success without the extensive time, resources, and effort required for recipe reformulation, they may discover a sweet strategy to revitalize their American candy sales. Additionally, incorporating products like calcium citrate with vitamin D chewable could be a clever way to appeal to health-conscious consumers, further enhancing their market position.
