It was with great interest that I saw Nutella launch into the frozen aisle. Our family get through a lot of Nutella jars, in large part thanks to the lovely French au pair we had when the kids were young. She ensured that breakfast included Nutella on or in everything: porridge, pancakes, bagels, toast… nothing was safe from the distinctive hazelnut spread! This is not Ferrero’s first rodeo in the world of ice cream. But taking such an iconic brand into this category is a big, bold move.
Launched to coincide with Nutella’s 60th birthday, I suggest Nutella ice cream hits the brand stretch sweet spot: staying true to the distinctive visual identity and taste that made the brand famous, whilst targeting new consumer needs and occasions. What can we learn from the launch of Nutella ice cream?
Post by Charlotte White, Managing Partner based in New York
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#1 Build on a strong core
A strong core is the bedrock for successful brand stretch. And Nutella’s expansion into ice cream comes on the back of another strong performance for the Ferrero group (+20.7% growth to €17 Billion in 2023). Nutella Ice Cream also taps into existing consumer behaviour, with Nutella ice cream already a familiar favourite flavour in ice cream shops around the world. The question on everyone’s lips is not why create a Nutella Ice Cream, but why so late to the party?
#2 Take time to perfect the product
The reason to play a waiting game when stretching tends to concern operational capability or the time it takes to get the product proposition right. Guiness 0% took the market by storm when it launched, but was five years in the making to get the technology right. Good things definitely do come to those who wait to stretch and Nutella Ice Cream looks to be the same.
“Our dedicated team of experts has spent years perfecting the recipe, inspired by our much-loved brand, Nutella… and we’re happy that now we can give them a new and exciting way to experience the brand,” UK & Ireland marketing director Dani Hayward-Bradley told the The Grocer August 2024. (1)
Described as “Creamy layers of Happiness” and a “100% Nutella experience until the last spoon”, early consumer reviews suggest Nutella Ice cream tastes as good as it sounds.
#3 Take a category approach
It is clear that Ferrero is taking the ice cream category very seriously. In addition to Nutella, they have launched Kinder, Rocher and Raffaello Ferrero ice creams. In this way, the company is building critical mass and strategic capability in this new market. All of this is part of its stated “strategic growth ambition to expand its business in North America and in the ice cream category.” (2)
#4 Build on distinctive brand assets
Structurally, the tub ice cream format is a gift to Nutella. No other brand could take its existing pack codes and so deftly leverage them to re-imagine their core. Transforming the basic tub with the Nutella jar look and feel is simple but brutally effective visual disruption. The ice cream pack design also mimics the parent spread with its bold simplicity, letting iconic brand and visual speak for themselves.
#5 Control distribution to build anticipation
Nutella Ice Cream first hit the headlines when it appeared in select Italian retail outlets back in June, before rolling out across mainstream Europe during the summer. A staggered launch gives a business the chance to build their supply chain up in a controlled fashion, iron out any kinks in the ‘business as usual’ production process, whilst building momentum and anticipation over the key summer months.
#6 Activate the power of the core
All too often brand stretch is used as a way to fill a leaky bucket and mask a stagnant core. Shopper marketing support all gets spent on the new innovation at the expense of the core and the leaky bucket becomes a self-fulfilling prophecy.
The Nutella shopper marketing plan in Italy clearly shows how to get brand stretch and the core working together. Visually arresting secondary displays brilliantly bring the whole portfolio together, whilst shining a light on the iconic spread. In this way, the core is strengthened not diluted.
#7 Create a clear brand Architecture
Despite being a relatively late to the brand stretch game, innovating off the core has become part of the Ferrero Group’s DNA. Recent launches have all had a clearly defined incremental role to play in the Nutella portfolio and leverage the core product taste and texture. The success of Nutella B-Ready (2019) and Nutella Biscuits (2022) has proven the stretchability of the brand and laid the groundwork for Nutella Ice Cream.
#8 Invest to win
Finally, launching into mature, highly competitive categories takes serious A&P commitment. With a £1.8million marketing push in the UK, for example, it is clear Ferrero are investing to win. The challenge to navigate going forward is how to sustain spend across an expanding portfolio, without diluting focus on the core.
In conclusion, the early signs are that Nutella have strategically stretched into ice cream in smart way. Mars, General Mills and Unilever watch out. Ferrero is coming after a big scoop of the global ice cream market!
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