Ferrero: Boosting Traceability Across Global Supply Chains

Ferrero has published findings from its 2024/2025 financial year Sustainability Report. The document shows how the confectionery manufacturer is converting sustainability objectives into measurable outcomes across its operations.

The company has been developing sourcing strategies that provide enhanced traceability within its supply chains. This work could mean greater operational resilience during periods of commodity price volatility.

Cocoa and coffee markets have experienced turbulent pricing conditions. According to Ferrero, closer collaboration with suppliers has become essential for maintaining consistent operations.

The manufacturer is working to support food systems from farm-level ingredient sourcing through to factory production and distribution. Ferrero uses its Farming Values framework to build supply chain resilience and source ingredients more responsibly.

The company applies a sacco conosciuto philosophy, translated as 'knowing what is in the bag'. This approach encourages visibility throughout all processes.

The farming values rest on five core elements:

• supplier due diligence
• supply chain traceability and visibility
• certification and standards
• farming practices and communities
• sector transformation.

These elements could help Ferrero maintain visibility standards across its value chain. The framework addresses modern supply chain expectations.

"Ferrero's long-term success remains closely linked to the wellbeing of the people and ecosystems on which our supply chain depends," says Giovanni Ferrero, President of Ferrero Group.

"Consumers are increasingly looking for brands they can trust – built on quality, good sourcing practices, careful manufacturing and a genuine commitment to people and the planet.

"Guided by our purpose and long-term vision, we will continue supporting initiatives related to the protection of natural resources, the support of our people, communities and partners and the creation of products that delight consumers for generations to come."

Managing commodity price volatility

Ferrero is prioritising stakeholder collaboration to address persistent supply chain challenges. The company has developed a flexible framework examining specific risks across its ingredient supply chains.

Key ingredients under examination include palm oil, cocoa, hazelnuts, coffee and dairy. The company is exploring responsible sourcing methods for these core commodities.

The manufacturer is developing risk mitigation strategies to protect against volatility. Businesses like Ferrero need to predict supply accurately and prepare for disruptions such as extreme weather events that damage crops.

According to Ferrero, implementing sustainable practices reduces environmental impact on crops and production capabilities. This could help protect long-term supply security.

"Ferrero Farming Values translates our sustainability approach into concrete actions across the sourcing of our key ingredients," adds Lapo Civiletti, Chief Executive Officer of Ferrero Group.

Lapo explains the framework strengthens supplier accountability and improves traceability.

"It provides a structured framework to strengthen supplier accountability, improve traceability and certification, support farmers and drive collaboration across the sector – while allowing us to adapt to the specific realities of each ingredient supply chain."

Polygon mapping for deforestation monitoring

The company has made progress on ingredient traceability across multiple commodities.

According to Ferrero, cocoa has reached 98% traceability to farm polygon maps.

Palm oil stands at 98.6% traceability to plantation level. Coffee beans have reached 100% traceability to plantation polygon maps.

Approximately 230,000 supply chain polygons have been analysed through the company's EUDR-aligned monitoring process.

This could contribute to deforestation-free sourcing through increased visibility.

Ferrero is supporting farming communities through new partnerships. The company has expanded its Save the Children programme in Côte d'Ivoire.

By 2030, this programme aims to reach 235 cocoa-producing communities.

The expansion could help improve conditions in cocoa-growing regions.

Packaging redesign reduces material use

Ferrero is addressing emissions and waste production through packaging updates.

The company is encouraging a more circular economy model.

According to Ferrero, the manufacturer has designed 92.9% of overall packaging to be recyclable, reusable or compostable.

The company has achieved a 14.7% reduction in plastic-to-product ratio compared to the 2019/2020 baseline.

The changes could demonstrate cost and emissions benefits of more responsible practices.

Ferrero is working to include partners and farmers in its decisions.

The company is integrating sustainability considerations throughout its supply chain. This includes sourcing practices and operational methods across the value chain.