How Ferrero Has Achieved 98% Cocoa Supply Chain Traceability

Ferrero's Sustainability Report examines how it is converting objectives into measurable outcomes across its global operations.

The company focuses on sourcing strategies to improve traceability and visibility across its supply chains. According to Ferrero, this approach builds resilience in its operations whilst addressing increasing regulatory requirements.

Cocoa and coffee prices have experienced volatility in recent periods, creating challenges for manufacturers. The company states that closer supplier collaboration has been necessary to maintain ongoing operations and ensure consistent quality standards.

Framework for farming values

The report details responsible initiatives across the value chain, demonstrating the company's commitment to long-term sustainability goals.

The company, while also marking its 80th anniversary, aims to support sustainable food systems, from farm-based ingredient sourcing to factories and products.

The Ferrero Farming Values framework is designed to support supply chain resilience and responsible ingredient sourcing whilst addressing environmental and social considerations.

The company uses a "sacco conosciuto" philosophy, which translates to "knowing what is in the bag". This approach is intended to encourage visibility across all processes, from raw material sourcing through to final product delivery.

According to Ferrero, the farming values are based on five core elements:

• Supplier due diligence.
• Supply chain traceability and visibility.
• Certification and standards.
• Farming practices and communities.
• Sector transformation.

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

"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."

Collaboration with supply partners

Ferrero is working with stakeholders to address challenges in its supply chain. It is developing a framework that examines specific risks associated with climate change, regulatory compliance and market volatility.

Key ingredients under examination include palm oil, cocoa, hazelnuts, coffee and dairy. The company is developing risk mitigation strategies for these core ingredients to ensure supply continuity and quality standards.

Businesses need to predict supply accurately and prepare for shifts such as extreme weather events and changing agricultural conditions. According to Ferrero, sustainable practices could reduce environmental impact on crops and production capabilities whilst supporting farmer livelihoods.

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

"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."

Traceability and packaging initiatives

Ferrero is working to source ingredients more sustainably through traceability methods and technology integration.

According to the company, cocoa has reached 98% traceability to farm polygon maps, providing detailed visibility of sourcing locations.

Palm oil has 98.6% traceability to the plantation. Coffee beans have reached 100% traceability to plantation polygon maps, exceeding industry standards for transparency.

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

This contributes to deforestation-free sourcing through increased visibility levels and satellite monitoring capabilities.

The company is supporting farming communities through partnerships and direct investment programmes. A Save the Children programme in Côte d'Ivoire is being expanded to reach 235 cocoa-producing communities by 2030, with a focus on education and child welfare.

Ferrero is addressing emissions and waste production through updated packaging design and material selection. According to the company, this could save costs and emissions whilst meeting consumer expectations for sustainable products.

The company has designed 92.9% of overall packaging to be recyclable, reusable or compostable. Ferrero reports a 14.7% reduction in plastic-to-product ratio compared to the 2019/2020 baseline, demonstrating measurable progress towards circular economy principles.

The company states it is working to integrate sustainability throughout its supply chain. Ferrero includes partners and farmers in its decisions to ensure practical implementation of sustainability initiatives.