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00:00:01
>> Nutella, the chocolatey, hazelnut spread and a pride of the Italian food industry is seeing another Italian rival infringe on its turf. That's Barilla, best known, of course, for its pasta and sauces in classic blue packaging. Barilla is planning to launch a chocolate spread of its own, according to Reuters sources, in a direct attack on Nutella.
00:00:24
So why now? Well, it seems that for years, Barilla and Nutella's parent company, Ferrero, had an understanding. And Ferrero seems to have broken that truce, Reuters' Francesca Landini in Milan.>> Sources told us that Barrila and the Ferrero does not get on well. After some decades, they started doing products that are in the area of the other.
00:00:51
So, for example, Barrila
UNKNOWN]
that Ferrero is launching more and more biscuits. And so that's why, probably according to sources, the pasta maker decided to get into chocolate spread market.>> Barilla wants Ferrero gone. Barilla makes not just pasta but cookies, as Francesca said. And Ferrero is planning to watch it's own Nutella-filled cookie next year.
00:01:21
Barilla is also hoping to capitalize on the fact that Ferrero uses palm oil in its chocolate. There's a consumer backlash against palm oil on health and environmental concerns. Ferrero says their oil is safe and from sustainable sources, but nonetheless Barilla will abstain from it completely. It will be called Crema Pan di Stelle, named after a Barilla cake brand seen here.
00:01:44
It will have bits of the cake in the fudge to give it a crunchy feel. However, analysts say even if Barilla takes part of Nutella's turf in Italy, it'll be very hard to expand into other markets like North America. They're not only fighting the name brand but also pay to play practices at food stores that could have its stock at the bottom of the shelf if they don't pay up.
00:02:08
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