Will Ferrero India taste sweet success with Raffaello?

As India’s festive season begins today with Navratri, global confectionery giant Ferrero has launched its new white praline, Raffaello, in the country. Known for its brands like Ferrero Rocher, Kinder Joy, and Tic Tac, the company aims to capitalise on India’s biggest shopping period, which peaks with Diwali and the New Year.

The launch of Raffaello marks Ferrero’s strategic entry into India’s fast-growing premium sweet packaged foods (SPF) market, estimated to be worth INR 6,229.70 crores in 2023. According to Imarc Research, the SPF market is expected to grow at a compound annual growth rate (CAGR) of 16.67% from 2024 to 2032, making it a promising sector for confectionery brands.

Ferrero’s strategy with Raffaello is to tap into the purchasing power of young, urban Indian consumers, positioning the praline as a luxurious yet accessible gift option during the festive season. Priced at INR 450 for a 15-unit cube-shaped box and INR 99 for a three-piece pack, the product is targeting consumers aged 16-35, a demographic known for its digital engagement.

Explaining the rationale behind its digital-first approach, Zoher Kapuswala, marketing head– Pralines for Ferrero India told Campaign, “India being the nation of a young population—with about 50% of Indians being under 33 years of age—this age-group [16 to 33 years] is the ideal target for our praline offering. These consumers spend more time on digital media than on traditional, TV and print media. Raffaello will be the perfect choice for affectionate gifting for this audience, especially during the festive season.” 

To capture this audience, Ferrero has shifted its marketing strategy away from traditional TV and print advertising, focusing instead on digital platforms. The campaign will run primarily on social media, targeting this young audience where they are most active—on platforms like Instagram, YouTube, and e-commerce sites.

Positioned as a premium gifting option 

Raffaello is being marketed as the perfect gift for “affectionate gifting,” reflecting India’s cultural emphasis on relationships during the festive season. Ferrero hopes that the praline’s high-end packaging and distinctive flavour profile—featuring a whole almond centre, coconut flakes, and a creamy filling—will appeal to India’s urban middle class, which has increasing disposable income.

The product will be placed in both modern retail channels and e-commerce platforms such as Amazon, Flipkart, and Big Basket. This is indicative of a well-rounded distribution strategy aimed at reaching consumers across both online and offline platforms.

To ensure product quality in India’s challenging climate, Ferrero has invested heavily in logistics and temperature-controlled supply chains. Given that Raffaello is a delicate product with a required storage temperature between 18 and 22 degrees Celsius, maintaining its quality throughout the distribution chain is a priority for Ferrero.

Zoher Kapuswala, marketing head– Pralines for Ferrero India.

“The directive for us from Ferrero HQ is to ensure end-to-end cold-chain right up to the retail counters. Under our visicoolers programme, we have already installed refrigerators at 4,500 stores across top 40 cities in India,” Kapuswala revealed.

The company has implemented air-conditioned shipping containers to transport the product from its factory in Poland to India and has installed IoT-enabled refrigerators, known as visicoolers, in 4,500 retail outlets across India’s top 40 cities. These refrigeration units allow Ferrero to remotely monitor temperature and ensure the product remains in optimal condition.

While Ferrero’s temperature-controlled logistics plan is ambitious, the tropical climate in much of India poses a significant challenge. Frequent power cuts, especially in smaller towns, could disrupt the product’s stability, potentially affecting the taste and texture of Raffaello.

To mitigate this, Ferrero’s expansion plan includes doubling the number of retailers participating in its visicooler programme over the next few months, but the success of this strategy depends largely on the reliability of local infrastructure.

The bitter-sweet competition

Ferrero faces stiff competition in India’s premium gifting segment within the SPF market. Established players like Cadbury India, Nestlé, and Haldiram already dominate this space, with strong consumer loyalty built over decades. In the premium category, the Italian company must also contend with global competitors such as Lindt, Godiva, and Toblerone, which are well-established in India’s high-end chocolate market.

Ferrero’s investment in cold-chain logistics and premium packaging may help differentiate Raffaello from these competitors. However, market saturation and consumer preferences will be key challenges to overcome.

Another potential risk comes from parallel imports, where the same product enters the market through unofficial channels. Parallel importers often sell at lower prices and lack the refrigeration facilities that Ferrero insists on for quality control.

This could dilute the brand’s premium positioning and lead to inconsistent consumer experiences if customers unknowingly purchase poorly stored products. Educating consumers about Raffaello’s perishability and the importance of proper storage after purchase will be crucial to maintaining product quality and brand reputation.

Ferrero’s broader strategy and market position

Ferrero’s foray into India’s premium confectionery market is not new. The company has already built a strong presence in India with its popular brands Ferrero Rocher and Kinder Joy, which have high brand visibility among the country’s young consumers.

Ferrero Rocher, which is priced similarly to Raffaello at INR 449 for a 16-unit pack, has successfully positioned itself as a premium chocolate brand, often associated with gifting. The company hopes to replicate this success with Raffaello, particularly during the festive season, when gifting chocolates is a popular tradition.

Ferrero’s long-term goal in India is to climb the ranks within the SPF category. Currently ranked seventh among top brands in the market, it aims to break into the top five within the next three to four years. The company’s emphasis on research and product quality, coupled with its temperature-controlled supply chain, could prove advantageous as India’s demand for premium confectionery products continues to rise.

Ferrero’s launch of Raffaello in India is a calculated move to capitalise on the country’s festive season and its growing appetite for premium sweets. The company’s focus on the young urban demographic, digital-first marketing approach, and investment in cold-chain logistics suggest that it is serious about establishing Raffaello as a premium brand in the Indian market. However, competition is fierce, and the tropical climate presents unique challenges that could affect product quality and brand perception.

As Ferrero continues to expand its visicooler programme and refine its distribution strategy, the success of Raffaello in India will depend on how well the company can maintain its premium positioning in a crowded market. The coming months will reveal whether Raffaello can replicate the success of Ferrero’s other brands in India, or if it will struggle to carve out a niche in the competitive SPF segment.