Ferrero has rapidly transformed its US presence, acquiring major brands and investing heavily in manufacturing, aiming to reshape the American snack landscape.
Washington DC, United States Aug 17, 2026 ALN: Ferrero has spent the last decade buying up some of America's biggest brands. Best known for Nutella, Ferrero has grown its US revenue from $600 million in 2017 to $3 billion. Now, a $3.1 billion cereal bet could determine how far Ferrero can go.
Brands like Baby Ruth, Butterfinger, Froot Loops, and Frosted Flakes are now under the ownership of this Italian company. Ferrero has invested significantly in established American food brands and manufacturing, expanding its portfolio to over 50 brands that include chocolate, candy, mints, cookies, and breakfast cereals.
This expansion has transformed Ferrero's US business, with the company reporting that the US now accounts for about 15% of its global revenue, a significant increase from approximately 4% a decade ago. Since 2017, its annual US revenue has surged from around $600 million to about $3 billion.
Although still smaller than major snack companies like Mars and Mondelez, Ferrero's acquisition spree has placed a growing collection of familiar brands under its umbrella, shifting its image from a European sweets importer to a key player in the American snack market.
Ferrero's US buying spree began in 2017 with the acquisition of Fannie May, a century-old chocolate company, for $115 million. The following year, it invested $2.8 billion to purchase Nestlé's US confectionery business, gaining brands like Butterfinger, Baby Ruth, and Crunch. In 2019, it further expanded by acquiring Kellogg's cookie and fruit-snack businesses, adding Keebler and Famous Amos to its roster.
Michael Lindsey, the president and chief business officer of Ferrero North America, explained that the company adopts a unique approach: "Ferrero takes a very different approach, which is buy well-established, loved brands, and then turn them back around." This strategy allows Ferrero to expand without the need to build brand recognition from scratch.
Ferrero's most significant US investment to date has taken it beyond the sweets aisle. In February, the company completed its $3.1 billion acquisition of WK Kellogg, the North American cereal company behind Froot Loops, Frosted Flakes, Corn Flakes, and Rice Krispies. However, this deal comes with challenges, as WK Kellogg had reported declining sales prior to the acquisition.
Acquisitions are just one part of Ferrero's strategy. In 2023, the company opened a 45,000-square-foot innovation and research center in Chicago, focusing on product development for brands like Keebler, Famous Amos, Mother's, and Fannie May. Lindsey noted that Ferrero has identified notable differences between American and European tastes, stating, "US tends to prefer milk a little bit more than dark chocolate," and highlighting that Americans have a unique affinity for peanut flavors.
This preference inspired a significant change to one of Ferrero's flagship products. In April, the company introduced Nutella Peanut, the brand's first new flavor in over 60 years, following five years of development and a $75 million investment in a production line at its Franklin Park, Illinois, factory.
This launch reflects a broader shift for Ferrero, as it increasingly develops and manufactures products tailored specifically for American consumers.
Ferrero has also made substantial investments in US manufacturing. In 2024, it opened its first chocolate-processing facility in North America in Bloomington, Illinois, producing chocolate for brands including Kinder, Ferrero Rocher, Butterfinger, and Crunch. The company has additionally invested over $200 million to enhance Kinder Bueno production at this site.
As Ferrero expands, its workforce has grown significantly, now employing more than 5,000 people across North America, compared to just a few hundred a decade ago. For Ferrero, these acquisitions and factory investments are part of a long-term strategy to become a more prominent player in the American food industry.
Lindsey likened Ferrero's current position in the US to that of Coca-Cola and Pepsi in the 1920s, when those companies were still establishing their market presence. While this is an ambitious comparison, the reality remains that buying well-known brands does not guarantee continued consumer loyalty, especially in a cereal market facing challenges.
Yet, Ferrero is evolving from merely being a European company selling Nutella and Ferrero Rocher to becoming a significant player behind the American brands already found in consumers' pantries.
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