Ferrero finds the sweet spot for growth in Japan

• Name: Neil Whitesmith
• Title: Cluster General Manager, Ferrero South Korea and Japan
• URL: https://www.ferrero.com/jp/ja/
• Hometown: Cambridge, England
• Years in Japan: 2

Ferrero makes some of the confectionery industry’s most recognizable products, such as the gold foil-wrapped Ferrero Rocher chocolates gifted on special occasions and the jars of Nutella found on breakfast tables around the world. From humble beginnings in 1946 as a pastry shop in Alba, northern Italy, the company has grown into a globally recognized enterprise that is still owned by the Ferrero family.

Originally from England, Neil Whitesmith manages Ferrero’s operations in South Korea and Japan and divides his time between the two countries. Nutella holds special childhood memories for him. Born in Italy in 1964, the chocolate-hazelnut spread has become a staple, used like jam or honey on toast. For Whitesmith and his siblings, however, it was a treat reserved for annual family vacations to France.

“The enjoyment of sitting in the French countryside eating a crepe with Nutella is something that has stayed with me for a very long time,” he recalled fondly.

Whitesmith was initially drawn to Ferrero for its distinctive character, combining a respect for traditions with a global mindset. He believes Ferrero’s emphasis on both quality and innovation aligns closely with Japan’s many long-standing businesses. “Markets evolve and the size of the company changes, but the multigenerational values in a family company are a constant,” he said.

Whitesmith took up his current role in 2024 after eight years at Ferrero’s headquarters in Luxembourg. Today, the company operates in most markets worldwide, either directly or through local partners.

Ferrero arrived in Japan in 1978 and sees it as a strategically important market. Following three years of double-digit growth across all its brands, the company plans to build on this momentum by further developing its Japanese presence.

“We’re more interested in long-term growth and opportunities in the market than in what we deliver in the next quarter. That’s quite a unique place for us among the global confectionery players, and it means that we can take long-term decisions,” Whitesmith said. “We have invested in our people, in our partners and in our brands, which enables us to drive that growth.”

Japanese from age 18 to 34 are the core target for Nutella spreads and snacks, which are currently driving the firm’s growth. They include Nutella & Go!, a portable snack with breadsticks for dipping; Nutella B-ready, a crisp wafer filled with hazelnut spread; and Nutella Biscuits, which have a creamy center.

Against the background of Japan’s aging population and falling birth rate, Whitesmith noted that the confectionery market is still growing and is, in fact, the third-largest packaged food market in the world. This offers new and diverse potential opportunities for products aimed at various age groups.

“We’re a chocolate company, so we are in the business of thoughtful treats. At the same time, portion control, health and wellness, and an active lifestyle are things we promote both as a corporation and through our brands,” he said, adding that some 85% of the firm’s products contain 130 calories or less per portion.

Ferrero has partnered with the Japanese singer Lisa, well known for performing theme songs for hit anime such as “Demon Slayer: Kimetsu no Yaiba.” As Nutella’s brand ambassador, Lisa marked her first official appointment at the Italian Embassy in Tokyo on World Nutella Day (Feb. 5) this year and is now representing Ferrero at overseas functions, helping to further strengthen the brand’s connection with younger Japanese consumers.

Nutella is also finding its way into the hands of food industry professionals through the Nutella Bakery Grand Prix, in which young bakers from across the country have been invited to create original products using the spread. Eight finalists will compete for the title in Osaka on Oct. 14.

“Working with one of our local business partners, we gave them the opportunity to enter a competition around producing a unique bakery product using Nutella,” Whitesmith explained. “There are more than 10,000 bakeries in Japan, the majority of which are small, independent, family-owned companies, so it’s a great connection.”

The philosophy of “sacco conosciuto” — “knowing what’s in the bag” — underpins Ferrero Farming Values, its approach to responsible sourcing and advocacy for producers. The company can now trace more than 90% of its raw materials to their source, working with groups such as the Rainforest Alliance, an NGO focused on sustainable supply chains. It also partners with Save the Children to support young people in cocoa-growing communities across Cote d’Ivoire and Ghana.

Family and community are very important in Whitesmith’s private life, too. His wife and their two children, ages 10 and 12, are based in Seoul but he tries to bring them to Japan whenever possible. These trips have given the family an opportunity to experience different parts of the country beyond Tokyo while discovering the local food and traditions that make each region unique. These explorations of the country’s various regional cultures and cuisine together included on a recent three-generation trip to Fukuoka and Nagasaki with his French parents-in-law.

Another shared family pastime is rugby. A lifelong enthusiast who played in his younger years, Whitesmith has passed his love of the sport on to his son and daughter. Having grown up with his own father as a coach, Whitesmith is paying it forward by coaching young players at a community club in Seoul.

Now overseeing twin markets in a dynamic international business, Whitesmith has come a long way from the schoolboy who munched on those Nutella crepes. Yet his belief in finding enjoyment in everyday life has stayed with him. “I think I’ve been lucky in the development of my career. If you look at what’s fundamental, you need to be enjoying coming to work every single day,” he said.