Ferrero to set up first production plant in Mexico

Italian confectionery group Ferrero plans to invest $190m to set up a production plant in San Josè Iturbide, Guanajuato, Mexico, as a part of its strategy to further grow its business in the country.

Ferrero Mexico president Felipe Calderon announced at a press conference that the new plant, located at Parque Opcòn industrial park, will feature four production lines and produce Kinder and Nutella products for the local market and for export to the US and Canada.

Nearly 60% of the production from the plant will be exported to the North American market, while the remaining 40% will be distributed in Mexico and other Central American markets.

The plant, which marks the company’s first facility in the country, is scheduled to be operational by May 2013.

Mexico is growing as a leading confectionery supplier and according to Mexican Federal Government agency ProMexico the country is the fifth largest exporter of non-cocoa confectionery and the second leading exporter of chocolates to the US.

According to market researcher Nielsen, the confectionery segment in Mexico is expected to grow at 5%-15% between 2011 and 2015, compared to 2%-3% long-term average growth of the world chocolate market.

Established in Mexico in 1992, Ferrero currently has 24 sales and distribution points in the country, and sells Nutella, Kinder, Tic Tac, and Ferrero Rocher products.

Image: Ferrero’s new facility in Mexico will feature four production lines and will produce Kinder and Nutella products for domestic market and for export to the US and Canada. Photo: Ferrero