The company will be supported by a CAD $1.5m (USD $1.1m) grant from the Southwestern Ontario Development Fund.
Ferrero’s Brantford plant currently produces Nutella, Kinda Surprise, Tic-Tac, Ferrero Rocher, and Raffaello.
Three new items to be produced at the plant will sell across North America. ConfectioneryNews has contacted the parties concerned for more details on the new products.
Ferrero will add 55 new jobs and will retain 831 existing staff at the facility. The project is set for completion by August 2017.
The Brantford plant, established in 2006, is Ferrero’s only facility in Canada and North America. It operates 22 plants around the world, including facilities in Mexico, Ecuador, Brazil and Argentina.
Catalyst for North America expansion
A Ferrero Canada spokesperson said the company appreciated the support from the Ontario government and said the firm’s Brantford plant had been a catalyst to expand Ferrero’s North American presence.
The Brantford site had 1,246 employees as of August 31, 2014 and was Ferrero’s eighth largest plant by employee numbers, accounting for 3.6% of its workforce according to the group’s latest CSR report. These figures included temporary workers.
Chcoolate confectionery in Canada is projected to register a compound annual growth rate (CAGR) of 2% up to 2020 to reach retail value sales of CAD $3.4bn (USD $2.6bn) by 2020, according to Euromonitor International.
The research organization's latest report on the sector said Nestlé led the market with a 15% share, followed by Hershey (14%) and Mondelēz.
Tweet from Dave Levac, MPP for Brant
Great day for Brantford & Ferrero Canada. 3 new product lines, 55 new jobs & protecting 831.$36 mill project. WOW! pic.twitter.com/YTFNFSHlun— Dave Levac (@DaveLevac) July 28, 2016