Ferrero opens logistics center in France to tailor packs for each retail channel

SPI Logistic to manage the logistics center near Lyon in Central France. Photo: Ferrero

Ferrero France has opened a new logistics and co-packaging center in Saint-Quentin Fallavier near Lyon, which will be operated by SPI Logistic.

It says the facility will give it more flexibility in packaging, allowing it to easily satisfy pack formats for different retail channels such as convenience stores and e-commerce.

It comes after Ferrero in February announced plans to upgrade its Villers-Ecalles plant in a $42m project due to be completed by 2021.

The 30,000 m² logistics center in Central France is around a six hour drive from the Villers-Ecalles factory in Northern France.

Co-packing center

SPI Logistic – which has worked with Nestlé, Mondelēz International and Haribo – will manage the center.

The French logistics firm collaborated with the Ferrero France’s supply chain team for six months to design the facility.

The site includes an automated and semi-automated, temperature controlled co-packing department.

It will store Ferrero brands such as Tic-Tac, Kinder, Nutella, Ferrero Rocher and Mon Chéri on air-conditioned shelves at a temperature between 14°C and 18 °C.

Ferrero market share in France

Ferrero is present in six segments in France with the following market shares:

  • Chocolate tablets: 11.3% 
  • Small pocket confectionery: 9.7% 
  • Pralines: 32.1% 
  • Spreads, jams and honeys: 33% 
  • Chocolate bars: 48.2% 
  • Industrial pastries: 5.1% 

Source: Nielsen 2015/2016 value sales/Ferrero France website

Flexibility in packaging

Ferrero France said the modernized site will increase its flexibility, allowing, for example, to fulfill a packaging request on Tic-Tac in two weeks instead of eight weeks at present.

"The opening of this new site is only the first step in a more ambitious plan for modernization for Ferrero France to make our supply chain more efficient and to support the growth of the next few years,” said Mohamed Zariouhi, supply chain director of Ferrero France [French translation].

Ferrero in France

Ferrero has been in the French market for 60 years and last year posted €1.24bn ($1.3bn) in revenues for its French business.

It has doubled its revenues in France since 2000 and today employs around 1,346 people in the country.

Its Villers-Ecalles factory was established in 1960 and is the group’s only production site in France. The site produces Nutella and Kinder Bueno, and exports 33% of its production to other EU countries.

Ferrero led the French chocolate confectionery market with a 23% value share in 2016, according to Euromonitor International.

The market research firm is forecasting a 1% compound annual growth rate (CAGR) in retail value sales for the market over the next five years.

[Photo credit: Kinder Delicé - Depositphotos]

Related News

Kuehne + Nagel wins Nestlé deal. Picture: Kuehne + Nagel.

Nestlé seals 5-year deal with Netherlands logistics firm

Ferrero France posted revenues of $1.3bn in 2016. ©iStock/Zoha Nve

Ferrero to modernize French factory in $42m project

Ferrero France targets 30% emissions savings with barge transport

Ferrero France targets 30% emissions savings with barge transport

Three-year old girl died in hospital on the weekend near Toulouse. Photo: iStock - JMLPYT

Ferrero’s Kinder Surprise toy linked to child’s death in France

Organic chocolate sales soar as big brands like Mondelēz's Côte d’Or enter the fray. ©Depositphotos/Anna_Shepulova-

No longer niche: France’s organic chocolate market grows 21%

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.