Snacks & Candy

Ferrero U.S.A. Signs Broker Deal With Advantage Sales & Marketing

Relationship expected to enhance grocery, convenience retail distribution, execution

SOMERSET, N.J. -- Ferrero U.S.A. Inc. has entered into a new national broker relationship with Advantage Sales & Marketing in the candy company's effort to enhance its distribution and execution in grocery and convenience retail outlets. This relationship takes effect on January 1, 2012.

The scope of this relationship covers the entire Ferrero U.S.A. product line, which includes Tic Tac mints, Ferrero Rocher chocolates, Ferrero Rondnoir dark chocolates, Raffaello confections, as well as Nutella hazelnut spread.

Advantage Sales & Marketing's national reach enables Ferrero U.S.A. to service all but a few states and accounts under a single broker network. Those states and accounts not included in this relationship are covered by relationships that Ferrero U.S.A. has in place with other brokers.

"Because of the fast-paced growth of Nutella, we have reached a critical mass where there has to be vertical integration with vertical accountability in our distribution network. Streamlining the number of brokers and working with one that has national coverage, such as Advantage, will enable this kind of efficiency," said Bernard Kreilmann, CEO of Somerset, N.J.-based Ferrero U.S.A.

Ferrero U.S.A. said that it hopes to drive sales growth at the store level by leveraging Advantage Sales & Marketing's knowledge of the food business, experienced sales and marketing managers, understanding of category management and use of shopper insights to inform in-store strategies.

According to John Kennington, vice president of sales for Ferrero U.S.A., "Partnering with Advantage gives us extensive experience across the store due to Advantage's broad array of services and strong expertise in the sales and marketing of brands. We can also benefit in terms of improving speed-to-shelf for new items, particularly in convenience outlets, as well as enhanced inventory management, merchandising direction and in-store selling."

The Ferrero Co. was established in 1946 in Alba, Italy. The company's first product was made with hazelnuts and cocoa, resulting in the base ingredients for Nutella hazelnut spread. Since then, the company has grown to become one of the world's largest confectionery companies.

Advantage Sales & Marketing is a leading national sales and marketing agency with revenues exceeding $1 billion. Based in Irvine, Calif., it represents more than 1,200 clients, their brands and service retailers.


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