Latest news with #Ferrero
Euractiv
14 hours ago
- Business
- Euractiv
Can palm oil go net zero? Inside the push to cut climate impact
Palm oil is one of the most ubiquitous substances in the goods we consume, found in everything from chocolate to cosmetics. It's in nearly 50% of the packaged products we see in supermarkets, and it's also used in animal feed and as a biofuel in many parts of the world. The reason is that it's an extremely versatile oil with numerous properties and functions. It is semi-solid at room temperature, making it suitable for use in food, and it's resistant to oxidation, which can extend the shelf life of products. It's also odourless and colourless, so it doesn't alter the look or smell of food products. It would therefore be very difficult to replace with another ingredient. But palm oil has long been linked to deforestation, fires and greenhouse gas emissions. The forest loss, together with the conversion of carbon-rich peat soils, has caused millions of tonnes of greenhouse gases to escape into the atmosphere. Still, could there be a way to reap the benefits of palm oil without contributing to climate change? Today, producing countries, major brands, and local farmers are betting that new technology and rules can rewrite that story - and even push palm oil toward net-zero emissions. The biggest challenge is stopping indirect land use change (ILUC), the hidden climate cost when forests are cleared elsewhere to make room for crops that have been displaced by palm oil cultivation. For Indonesia and Malaysia, the two biggest producers of palm oil, these efforts have been particularly important. 'In Malaysia, palm oil is produced in accordance with sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which has been implemented on a mandatory basis from January 2020,' says Dr. Ahmad Parveez Ghulam Kadir, Director-General of the Malaysian Palm Oil Board. 'The MPSO certification has a deforestation cut-off date of 31 December 2019, which strengthened the requirements for new planting.' Satellite eyes in the sky Over the past two decades, pressure from consumers and regulators has motivated palm oil giants to clean up their supply chains. At the heart of this effort is traceability - proving exactly where each tonne of palm oil comes from. Multinational companies like Unilever, Ferrero, Nestlé, and Kao now monitor vast plantations with high-resolution satellite imagery and AI detection tools. Ferrero, for example, has tracked 100% of its palm oil to the plantation level since 2016 and uses Starling satellite monitoring to flag forest loss in real time. Unilever's NDPE (No Deforestation, No Peat, No Exploitation) dashboard tracks 20 million hectares globally. Meanwhile, producing countries are tightening the rules. Indonesia has launched its e-STDB traceability platform, which requires farmers and companies to register their palm plantations on a national blockchain-based database. Malaysia is developing the National Oil Palm Traceability System, to establish full traceability across the supply chain. 'This system is anchored by the Sawit Intelligent Management System (SIMS) for traceability data and will be integrated with GeoSawit and e-MSPO, two important platforms that support geospatial mapping and sustainability certification, respectively,' says Ahmad Parveez. He said, 'The integrated approach enables the tracking of the origin of palm products along the supply chain from the plantation and smallholders. The traceability system is crucial in the context of sustainability and climate commitments, including monitoring, management and reporting of emissions, among others.' These advances are being supercharged by technology. New satellite monitoring systems - like Earthqualizer, and Global Forest Watch - use AI to spot illegal land clearing, even under cloud cover. This surveillance is giving companies and governments near real-time alerts when new plantations appear on high-carbon peatlands or primary forests. Changes on the ground Palm oil emissions don't just come from clearing forests, but also from methane leaking from palm oil mills. Malaysia's Sustainable Palm Oil Roadmap encourages mills to capture methane and turn it into biogas, cutting emissions by nearly 40% per tonne of crude palm oil, according to a 2023 industry report. Meanwhile, projects like PALMSTEP in Central Kalimantan, funded by the European Union, help smallholder farmers get certified and access digital tools for traceability and regenerative farming, reducing the pressure to expand into forests. Palm oil mills emit methane from wastewater and CO₂ from energy use. Methane-capture biogas systems, together with switching to renewable energy, can reduce mill CO₂e intensity by around 40%, according to experts. Energy-efficient mills coupled with zero-burning policies can also help combat both direct emissions and ILUC pressures. 'The cooperation among countries in Southeast Asia has continued to ensure conservation of forest and biodiversity as well as reduce impact on the environment and contribute to climate action,' says Parveez. 'One of the examples is the Heart of Borneo, a trilateral cooperation between Brunei, Indonesia and Malaysia covering an area of over 20 million hectares that help to strengthen the world's resilience to climate change by conserving carbon sinks and creating a huge green lung for the world, and at the same time protecting the livelihoods of the forest dependent communities.' He noted that in addition, Malaysia has the Central Forest Spine initiative that covers 5.3 million hectares in Peninsular Malaysia as part of the conservation efforts at the national level. Is it working? So far, there has been progress, but not as much as campaigners would have liked to see. The NGO WWF has said that it is better to stick with palm oil rather than alternatives like soybeans, coconut or sunflower oil because they require between four to ten times more land. But they say that while progress is being made on reducing palm oil's climate and environmental impact, change isn't coming fast enough. Studies show deforestation rates linked to palm oil have fallen in Indonesia and Malaysia since the destructive haze years of 2015, when fires raged across peatlands, releasing over 500 million tonnes of CO₂. The World Resources Institute reports that palm-related deforestation dropped by more than 40% between 2012 and 2022, thanks in part to corporate 'zero deforestation' pledges and tighter land laws. 'Palm oil presents a positive example of decoupling commodity production from deforestation,' says Anita Neville, Chief Sustainability and Communications Officer at the Singapore-based palm oil company Golden Agri-Resources. Neville remarked that forest loss linked to palm oil production in Indonesia, the world's largest palm oil producer, fell by more than 90% from its peak in 2012 to 2022, while palm oil production continued to increase. But scientists warn that indirect land use change remains a threat if demand keeps rising. If plantations expand into untouched forests or displace other crops to new frontiers, the climate gains vanish. The Roundtable on Sustainable Palm Oil (RSPO), formed in 2004, has been working to ensure that climate gains are maintained. RSPO has production standards for growers that set best practices for producing and sourcing palm oil, and it has the buy-in of most of the global industry. Companies can certify their products with the RSPO label to demonstrate to consumers they are part of these efforts. Nearly 20% of global palm oil is RSPO-certified. The world's top palm oil producers have big climate promises. Indonesia aims for net-zero emissions by 2060, while Malaysia wants to get there by 2050, leaning heavily on transforming its palm sector. Major buyers like Unilever, Nestlé, and Ferrero have pledged to buy 100% sustainably sourced palm oil within the next two years. Still, critics argue that global demand and enforcement gaps could undermine these ambitions. [Edited By Brian Maguire | Euractiv's Advocacy Lab ]
Forbes
6 days ago
- Business
- Forbes
Tariffs, Deals And Breakup Rumors Are Heating Up The Food Industry
Italian candy and food giant Ferrero—best known for its chocolate hazelnut Nutella spread and Ferrero Rocher gold-wrapped chocolates—has been on an acquisition spree over the last decade. Jason Adlen/Bloomberg T he summer heat is hitting the food industry. Chaos abounds. Let's get into it. On the heels of the news that Ferrero will acquire WK Kellogg for $3.1 billion, there's talk of Kraft Heinz breaking up, a decade after its $45 billion merger. Crain's Chicago Business called the deal 'a rare flop' among the portfolio of billionaire investor Warren Buffett, who architected the merger with 3G Capital. CNBC is even reporting that the split rumors are prompting speculation that Buffett's Berkshire Hathaway might sell its stake in the publicly traded business. Then there's the latest tariff news, which has commodities and futures reeling—especially in coffee, thanks to the 50% tariff set for Brazilian products starting August 1. Reuters reports that traders are rushing to import as much coffee as they possibly can ahead of that date. Much more to discuss throughout today's newsletter. And as the summer heat picks up, I am hoping you have strong air conditioning, refreshing beverages and a steady stream of ice! — Chloe Sorvino This is Forbes' Fresh Take newsletter , which every Wednesday brings you the latest on the big ideas changing the future of food. Want to get it in your inbox every week? Sign up here . Featured Story Meet The Italian Billionaire Behind Ferrero's $3.1 Billion Deal For Kellogg JAMEL TOPPIN FOR FORBES Since he became the sole leader of his family's candy maker in 2015, executive chairman Giovanni Ferrero has expanded beyond well-known brands like Nutella and built a global powerhouse—especially through big acquisitions in the U.S. The Feed Abianne Falla pours a cup of tea made with yaupon, North America's only indigenous caffeinated plant, at one of her company's eight harvest sites in Alleyton, Texas on June 23, 2025. Callaghan O'Hare/For The Washington Post via Getty Images Yippee for Yaupon: I adored this Washington Post feature on yaupon tea—North America's only native caffeinated plant—and how the tea could gain a new following amid tariffs on coffee and tea. I first tried yaupon tea at the trade show Expo West in 2024, and was intrigued to learn that the homegrown alternative, as brewed by Yaupon Brothers, was as delicious as it was. Sure, there was a vegetal quality to the tea, but it was refreshing and invigorating. And the antioxidants and phytonutrients from it, since yaupon is a wild-cultivated plant, made a strong argument for adoption. As the Post reports, 'Known by many Indigenous and colonized names, including cassina, asi, Carolina tea and Christmas berry, the yaupon plant is a landrace, evergreen holly variety that can grow up to 30 feet tall, appearing from North Carolina to East Texas. But even as it grows right under their noses and in their backyards, most Americans have probably never heard about yaupon.' With tea facing the highest tariffs since the Tea Act of 1773, the history is worth a retelling. The Post report continues, 'Two and a half centuries ago, yaupon became part of a political movement. The Townshend Revenue Acts, which taxed a variety of common imports in the 1770s and allowed the British Parliament to meddle with the free market, brought colonial unrest to a boiling point. In that era of political boycott, colonists turned to tea alternatives made with a variety of herbs, fruits and indigenous plants, including yaupon. These 'liberty teas' proved perfectly acceptable substitutes, until the American Revolution ended, the global tea trade returned and yaupon was suddenly out of style again.' An overhead pole camera image shows wildfire damage to an Altadena Drive street sign and home destroyed by the Eaton Fire in Altadena, California on January 14, 2025. PATRICK T. FALLON/AFP via Getty Images Insurer Yikes: It was concerning to read CalMatters on the Altadena fire survivor who tried to cash a nearly $900,000 check from California's largest private insurer State Farm, only to find out that State Farm's account had insufficient funds. According to CalMatters, 'Earlier this year, State Farm said claims from the L.A.-area fires would worsen its financial condition and potentially drive it out of California, where it has either canceled or refused to renew tens of thousands of policies. In May, State Farm received an unprecedented approval from the state to raise its rates on an emergency interim basis. Among the company's arguments during a public hearing was that its credit rating had been downgraded, and that its solvency and therefore the policies of more than 1 million California homeowners were at real risk.' A woman raises her hands as Customs and Border Protection officers extend their skirmish line into a crop field during a raid by Federal immigration agents at Glass House Farms in Camarillo, California, July 10, 2025. BLAKE FAGAN/AFP via Getty Images ICE Watch: The 57-year-old cannabis farmworker Jaime Alanis Garcia died Saturday from critical injuries sustained in an Immigration and Customs Enforcement raid days prior. NBC News reports that Garcia broke his neck and skull after falling roughly 30 feet while attempting to hide on the roof of a greenhouse at Glass House Farms in Southern California. It is the first known death in a Trump Administration ICE raid. And on Tuesday, ICE declared millions of immigrants are no longer eligible for bond hearings and will be held in custody until the end of legal proceedings, which can take years. Listen In I was interviewed by the BBC about the life of mozzarella cheese billionaire James Leprino, who commercialized pizza cheese as we know it today and died at age 87 on June 19. I'm the only journalist who ever got him to sit for an interview, and the three hours I spent with him in 2016 were illuminating. His company Leprino Foods, America's largest mozzarella supplier, turns 75 this year. Give the radio segment a listen! Field Notes CHLOE SORVINO In honor of my third wedding anniversary today, my husband Nick seared up a beautiful Missouri-raised wagyu steak from veteran-owned KC Cattle Co. and topped it with a chimichurri featuring peppers and parsley from our terrace garden. Thanks for reading the 151st edition of Forbes Fresh Take! Let me know what you think. Subscribe to Forbes Fresh Take here .
Reuters
15-07-2025
- Business
- Reuters
Ferrero poised to revive WK Kellogg sales for health-conscious Americans
July 15 (Reuters) - Nutella spread maker Ferrero, armed with experience in health-regulated European markets and a track record of revamping struggling brands like Keebler cookies, has a good chance of reviving WK Kellogg's (KLG.N), opens new tab legacy cereal brands with its $3.1 billion take-private deal announced last week. Ferrero, which makes sugary treats like Kinder chocolate eggs, Ferrero Rocher, and Tic Tac, has pursued an aggressive global expansion to boost revenue and diversify its portfolio beyond sweets into snacks, baked goods, and now breakfast cereals. Under Chairman Giovanni Ferrero, the company has invested heavily in product innovation, reformulation and packaging redesign to turn around some challenged brands it previously acquired such as Keebler from Kellogg. Meanwhile, demand has fallen for products made by WK Kellogg (KLG.N), opens new tab, whose cereals include Special K, Corn Flakes and sweetened offerings such as Froot Loops, Honey Smacks and Frosted Flakes. Consumers have traded down from its pricier cereals even as Kellogg has come under scrutiny for using artificial food dyes. "Ferrero's creativity can help jump-start sales in a sleepy (albeit higher margin) category," said Hank Cardello, executive-in-residence at the Business for Impact center at Georgetown's McDonough School of Business. Ferrero's expertise in cookies and confectionery could help create distinct new versions of cereal products, he added. Ferrero could reinvigorate WK Kellogg's portfolio which also contains healthier options such as Special K and Raisin Bran, touted for their high fiber content, as well as nutrient-rich cereals, granola and waffles under its Kashi brand. "I expect that (Ferrero) will preserve Kellogg brand recognition without too much dilution while also marketing a healthier and more consumer-friendly and appealing product line," Amrita Bhasin, CEO of logistics food and beverage company Sotira, said. In 2018, Ferrero bought Nestle's confectionery business for $2.8 billion, adding brands such as candy bars Butterfinger, Baby Ruth, and 100 Grand to its portfolio. In just a few years, Ferrero relaunched Butterfinger with higher-quality ingredients including peanuts, cocoa and milk and revamped packaging. The steps helped grow demand for the salted caramel bars. In 2019, Ferrero made a $1.3 billion acquisition of Kellogg's cookies, snacks and ice cream business. The Italian company revitalized these products by investing in new packaging and more marketing. In 2023, it also bought Fresystem Group and used the acquisition to grow its frozen food business and launch Nutella muffins and other baked goods. Ferrero declined to comment on the strategy for WK Kellogg. In April, WK Kellogg said, opens new tab it was reformulating its cereals served in schools to not include artificial dyes. Other packaged food makers such as PepsiCo (PEP.O), opens new tab, Kraft Heinz (KHC.O), opens new tab and Hershey (HSY.N), opens new tab have also started working to remove synthetic food dyes from their products, under pressure from U.S. Health Secretary Robert F. Kennedy Jr.'s Make America Healthy Again, or MAHA campaign. Analysts and industry experts noted that Ferrero has spent decades dealing with European regulators that have pushed back on additives, coloring and sugar. This could give the confectionery giant an edge dealing with Kennedy's MAHA campaign, they said. "Ferrero has been a pioneer in marketing smaller portions, which would fit in well with MAHA," Cardello said. For instance, as a founding member of the Always a Treat initiative in 2017, Ferrero committed to ensuring that half of its single-serve packs contain 200 calories or less to help consumers manage their sugar intake. As a private family-owned company, Ferrero is insulated from the pressures of quarterly earnings, giving it more flexibility to invest in long-term brand building and product innovation. Analysts said this could be critical in reshaping WK Kellogg's product lineup over the next few years. Still, MAHA could boost costs for Ferrero as it makes its expansion push in North America. "Ferrero will have to grapple with MAHA requirements across the company, not just in cereal, since much of its business is based on candy and sugary snack foods," said Sky Canaves, an analyst with market research firm Emarketer.
Yahoo
15-07-2025
- Business
- Yahoo
Analysis-Ferrero poised to revive WK Kellogg sales for health-conscious Americans
By Savyata Mishra (Reuters) - Nutella spread maker Ferrero, armed with experience in health-regulated European markets and a track record of revamping struggling brands like Keebler cookies, has a good chance of reviving WK Kellogg's legacy cereal brands with its $3.1 billion take-private deal announced last week. Ferrero, which makes sugary treats like Kinder chocolate eggs, Ferrero Rocher, and Tic Tac, has pursued an aggressive global expansion to boost revenue and diversify its portfolio beyond sweets into snacks, baked goods, and now breakfast cereals. Under Chairman Giovanni Ferrero, the company has invested heavily in product innovation, reformulation and packaging redesign to turn around some challenged brands it previously acquired such as Keebler from Kellogg. Meanwhile, demand has fallen for products made by WK Kellogg, whose cereals include Special K, Corn Flakes and sweetened offerings such as Froot Loops, Honey Smacks and Frosted Flakes. Consumers have traded down from its pricier cereals even as Kellogg has come under scrutiny for using artificial food dyes. "Ferrero's creativity can help jump-start sales in a sleepy (albeit higher margin) category," said Hank Cardello, executive-in-residence at the Business for Impact center at Georgetown's McDonough School of Business. Ferrero's expertise in cookies and confectionery could help create distinct new versions of cereal products, he added. Ferrero could reinvigorate WK Kellogg's portfolio which also contains healthier options such as Special K and Raisin Bran, touted for their high fiber content, as well as nutrient-rich cereals, granola and waffles under its Kashi brand. "I expect that (Ferrero) will preserve Kellogg brand recognition without too much dilution while also marketing a healthier and more consumer-friendly and appealing product line," Amrita Bhasin, CEO of logistics food and beverage company Sotira, said. In 2018, Ferrero bought Nestle's confectionery business for $2.8 billion, adding brands such as candy bars Butterfinger, Baby Ruth, and 100 Grand to its portfolio. In just a few years, Ferrero relaunched Butterfinger with higher-quality ingredients including peanuts, cocoa and milk and revamped packaging. The steps helped grow demand for the salted caramel bars. In 2019, Ferrero made a $1.3 billion acquisition of Kellogg's cookies, snacks and ice cream business. The Italian company revitalized these products by investing in new packaging and more marketing. In 2023, it also bought Fresystem Group and used the acquisition to grow its frozen food business and launch Nutella muffins and other baked goods. Ferrero declined to comment on the strategy for WK Kellogg. In April, WK Kellogg said it was reformulating its cereals served in schools to not include artificial dyes. Other packaged food makers such as PepsiCo, Kraft Heinz and Hershey have also started working to remove synthetic food dyes from their products, under pressure from U.S. Health Secretary Robert F. Kennedy Jr.'s Make America Healthy Again, or MAHA campaign. Analysts and industry experts noted that Ferrero has spent decades dealing with European regulators that have pushed back on additives, coloring and sugar. This could give the confectionery giant an edge dealing with Kennedy's MAHA campaign, they said. "Ferrero has been a pioneer in marketing smaller portions, which would fit in well with MAHA," Cardello said. For instance, as a founding member of the Always a Treat initiative in 2017, Ferrero committed to ensuring that half of its single-serve packs contain 200 calories or less to help consumers manage their sugar intake. As a private family-owned company, Ferrero is insulated from the pressures of quarterly earnings, giving it more flexibility to invest in long-term brand building and product innovation. Analysts said this could be critical in reshaping WK Kellogg's product lineup over the next few years. Still, MAHA could boost costs for Ferrero as it makes its expansion push in North America. "Ferrero will have to grapple with MAHA requirements across the company, not just in cereal, since much of its business is based on candy and sugary snack foods," said Sky Canaves, an analyst with market research firm Emarketer.
Yahoo
15-07-2025
- Business
- Yahoo
Analysis-Ferrero poised to revive WK Kellogg sales for health-conscious Americans
By Savyata Mishra (Reuters) -Nutella spread maker Ferrero, armed with experience in health-regulated European markets and a track record of revamping struggling brands like Keebler cookies, has a good chance of reviving WK Kellogg's legacy cereal brands with its $3.1 billion take-private deal announced last week. Ferrero, which makes sugary treats like Kinder chocolate eggs, Ferrero Rocher, and Tic Tac, has pursued an aggressive global expansion to boost revenue and diversify its portfolio beyond sweets into snacks, baked goods, and now breakfast cereals. Under Chairman Giovanni Ferrero, the company has invested heavily in product innovation, reformulation and packaging redesign to turn around some challenged brands it previously acquired such as Keebler from Kellogg. Meanwhile, demand has fallen for products made by WK Kellogg, whose cereals include Special K, Corn Flakes and sweetened offerings such as Froot Loops, Honey Smacks and Frosted Flakes. Consumers have traded down from its pricier cereals even as Kellogg has come under scrutiny for using artificial food dyes. "Ferrero's creativity can help jump-start sales in a sleepy (albeit higher margin) category," said Hank Cardello, executive-in-residence at the Business for Impact center at Georgetown's McDonough School of Business. Ferrero's expertise in cookies and confectionery could help create distinct new versions of cereal products, he added. Ferrero could reinvigorate WK Kellogg's portfolio which also contains healthier options such as Special K and Raisin Bran, touted for their high fiber content, as well as nutrient-rich cereals, granola and waffles under its Kashi brand. "I expect that (Ferrero) will preserve Kellogg brand recognition without too much dilution while also marketing a healthier and more consumer-friendly and appealing product line," Amrita Bhasin, CEO of logistics food and beverage company Sotira, said. In 2018, Ferrero bought Nestle's confectionery business for $2.8 billion, adding brands such as candy bars Butterfinger, Baby Ruth, and 100 Grand to its portfolio. In just a few years, Ferrero relaunched Butterfinger with higher-quality ingredients including peanuts, cocoa and milk and revamped packaging. The steps helped grow demand for the salted caramel bars. In 2019, Ferrero made a $1.3 billion acquisition of Kellogg's cookies, snacks and ice cream business. The Italian company revitalized these products by investing in new packaging and more marketing. In 2023, it also bought Fresystem Group and used the acquisition to grow its frozen food business and launch Nutella muffins and other baked goods. Ferrero declined to comment on the strategy for WK Kellogg. In April, WK Kellogg said it was reformulating its cereals served in schools to not include artificial dyes. Other packaged food makers such as PepsiCo, Kraft Heinz and Hershey have also started working to remove synthetic food dyes from their products, under pressure from U.S. Health Secretary Robert F. Kennedy Jr.'s Make America Healthy Again, or MAHA campaign. Analysts and industry experts noted that Ferrero has spent decades dealing with European regulators that have pushed back on additives, coloring and sugar. This could give the confectionery giant an edge dealing with Kennedy's MAHA campaign, they said. "Ferrero has been a pioneer in marketing smaller portions, which would fit in well with MAHA," Cardello said. For instance, as a founding member of the Always a Treat initiative in 2017, Ferrero committed to ensuring that half of its single-serve packs contain 200 calories or less to help consumers manage their sugar intake. As a private family-owned company, Ferrero is insulated from the pressures of quarterly earnings, giving it more flexibility to invest in long-term brand building and product innovation. Analysts said this could be critical in reshaping WK Kellogg's product lineup over the next few years. Still, MAHA could boost costs for Ferrero as it makes its expansion push in North America. "Ferrero will have to grapple with MAHA requirements across the company, not just in cereal, since much of its business is based on candy and sugary snack foods," said Sky Canaves, an analyst with market research firm Emarketer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
