Who Owns Butterfinger?
Butterfinger is owned by Ferrero Group, a privately held Italian confectionery company headquartered in Alba, Italy. Ferrero acquired Butterfinger from Nestle in 2018 for $2.8 billion as part of a deal that included several Nestle U.S. confectionery brands. Ferrero reformulated Butterfinger in 2019 with higher-quality ingredients and relaunched the brand in 2020 with updated packaging.
Parent Company
Ferrero
Acquired
2018
Status
Private
Headquarters
Chicago, Illinois, USA
Who Owns Butterfinger?
- Parent Company: Ferrero
- Ownership Type: Wholly owned
- Acquisition Year: 2018
- Company Type: Privately Held
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Butterfinger | Ferrero | Wholly owned |
History of Butterfinger
- Founded: 1923
- Founders: Otto Schnering
- Acquired by Ferrero: 2018
Butterfinger was invented in 1923 by Otto Schnering, founder of the Curtiss Candy Company in Chicago. Schnering was one of the most innovative confectioners of the early 20th century. He named the bar "Butterfinger" through a public contest, choosing a term that had been used by sportswriters to describe athletes who dropped balls. The name stuck.
The original Butterfinger consisted of a peanut butter and sugar core that was boiled, stretched, and folded to create a flaky, crisp texture. This core was then coated in chocolate. The manufacturing process gave Butterfinger its distinctive layered texture, which differentiated it from other candy bars of the era. Curtiss Candy Company also produced the Baby Ruth bar, which was introduced in 1920.
Schnering was an aggressive marketer. In 1927, he chartered an airplane and dropped Butterfinger bars over Pittsburgh, creating one of the first aerial marketing stunts in the United States. The company expanded rapidly through the 1930s and 1940s, becoming one of the largest independent candy manufacturers in the country.
Nestle S.A. acquired the Curtiss Candy Company brands in 1990. Under Nestle's ownership, Butterfinger maintained its market position but faced increasing competition from Mars (Snickers, Twix) and Hershey (Reese's). Nestle invested in marketing campaigns, including the long-running "Nobody Better Lay a Finger on My Butterfinger" campaign featuring Bart Simpson, which ran from 1990 to 2001.
In 2018, Nestle sold its U.S. confectionery business to Ferrero for $2.8 billion. Ferrero immediately began a reformulation effort, updating Butterfinger's recipe in 2019. The new version replaced the original chocolate coating with a higher-quality chocolate made from larger cocoa beans and removed the additive TBHQ (tert-butylhydroquinone). Ferrero also removed artificial flavors and colors. The reformulated Butterfinger launched in early 2020 with redesigned packaging that dropped the cartoonish logo for a more modern look.
Ferrero has since expanded the Butterfinger product line to include Butterfinger Cups, Butterfinger Bites, and seasonal shapes. The brand remains primarily a U.S. product, with limited international distribution compared to Ferrero's global brands like Nutella and Ferrero Rocher.
About Ferrero
What does Ferrero own?
Ferrero owns and manages iconic confectionery and food brands including Nutella, Ferrero Rocher, Kinder, Tic Tac, WK Kellogg Co, Power Crunch, Butterfinger, BabyRuth, and 100 Grand. The company operates through a multi-brand strategy while maintaining family ownership and Italian heritage.
Is Ferrero publicly traded?
No, Ferrero is a privately held company owned by the Ferrero family since its founding in 1946. The company is not publicly traded on any stock exchange, which allows for long-term strategic planning and family control over business decisions.
Who founded Ferrero?
Ferrero was founded in 1946 by Pietro Ferrero in Alba, Italy. The company began as a small confectionery business and grew through innovation in chocolate products, particularly with the creation of Nutella chocolate hazelnut spread.
Where is Ferrero headquartered?
Ferrero maintains its corporate headquarters in Alba, Italy, where the company was originally founded. The company also operates additional corporate offices, manufacturing facilities, and distribution centers across major global markets.
How many brands does Ferrero own?
Ferrero manages approximately 8 core brands across confectionery, chocolate, mints, and breakfast cereal categories, including both original brands and acquired companies like WK Kellogg Co.
What is Ferrero's revenue?
Ferrero reported annual revenue of approximately €19.3 billion for fiscal year 2025, representing growth of 4.6% compared to the previous year and reflecting continued demand for core brands and expansion into new product categories.
What sustainability initiatives does Ferrero have?
Ferrero has implemented comprehensive sustainability programs including science-based emissions targets, sustainable packaging solutions, ethical ingredient sourcing, renewable energy programs, and supplier sustainability standards across its global operations.
- Founded: 1946
- Headquarters: Alba, Italy
- Company Type: Privately Held
- Revenue: approximately €19.3 billion (FY2025)
- Employees: Approximately 46,000
Where Is Butterfinger Made / Based?
- Headquarters: Chicago, Illinois, USA
- Manufacturing / Operations: United States
Butterfinger Sustainability & Ethics
Butterfinger operates under Ferrero Group's corporate sustainability framework. Ferrero has made several commitments relevant to its confectionery products.
Cocoa Sourcing: Ferrero has committed to sourcing 100% certified sustainable cocoa by 2025 through programs including Rainforest Alliance, Fairtrade, and its own Ferrero Farming Values initiative. As of the company's most recent sustainability report, approximately 95% of cocoa was certified sustainable. Butterfinger's cocoa is sourced through this program.
Palm Oil: Ferrero is a founding member of the Palm Oil Innovation Group (POIG) and sources 100% RSPO-certified segregated sustainable palm oil. The company has been recognized by the World Wildlife Fund for its palm oil sourcing practices. Butterfinger products contain palm oil, which is sourced through Ferrero's sustainable palm oil program.
Packaging: Ferrero has committed to making 100% of its packaging recyclable, reusable, or compostable by 2025. As of 2024, approximately 83% of Ferrero's packaging was recyclable. Butterfinger's individual wrappers and multipack packaging are included in this target. The brand has not yet achieved 100% recyclable packaging.
No Artificial Colors or Flavors: Following the 2019 reformulation, Butterfinger no longer contains artificial colors, artificial flavors, or the preservative TBHQ. This change aligned the brand with consumer preferences for cleaner ingredient labels.
Child Labor in Cocoa Supply Chain: The cocoa industry has faced ongoing scrutiny regarding child labor in West African supply chains, particularly in Cote d'Ivoire and Ghana. Ferrero has implemented monitoring and remediation programs through its Ferrero Farming Values initiative. The company publishes an annual sustainability report detailing progress on child labor monitoring, though independent verification of outcomes has been mixed.
No independent certifications (B Corp, Fair Trade brand-level, organic) apply specifically to the Butterfinger brand.
Awards & Recognition
Butterfinger does not have a substantial record of independently verified industry awards. The brand's recognition is primarily historical and cultural:
- Iconic American Candy Bar: Butterfinger has been recognized as one of the most recognizable American candy bar brands, with a history spanning over 100 years since its introduction in 1923.
- Bart Simpson Campaign Recognition: The "Nobody Better Lay a Finger on My Butterfinger" advertising campaign, which ran from 1990 to 2001, was recognized as one of the most memorable candy bar marketing campaigns of the 1990s and was featured in Advertising Age's retrospective coverage of the decade's advertising.
No recent independent industry awards or third-party quality certifications have been documented for the Butterfinger brand.
Butterfinger Recalls & Controversies
2017 Plastic Contamination Recall: In March 2017, while Butterfinger was still under Nestle's ownership, Nestle recalled approximately 2,600 cases of Butterfinger Bites due to possible plastic contamination. The affected products were distributed in the United States and had a specific production code. No injuries or consumer complaints were reported. The recall was issued voluntarily as a precaution, and the issue was resolved within weeks.
2019 Reformulation Controversy: When Ferrero reformulated Butterfinger in 2019, some consumers expressed dissatisfaction with the new recipe on social media. The primary complaints were that the reformulated bar tasted different from the original and that the chocolate coating melted more easily. Ferrero acknowledged the feedback but maintained that the reformulation improved ingredient quality. The controversy was limited to social media discussion and did not result in any regulatory action or sales decline significant enough to be reported publicly.
Cocoa Supply Chain Child Labor Concerns: Ferrero Group, as a major cocoa buyer, has been named in reports and lawsuits regarding child labor in the West African cocoa supply chain. In 2021, the U.S. Supreme Court ruled in a case (Nestle USA v. Doe) involving several chocolate companies, though the ruling was narrowly focused on corporate liability under U.S. law and did not find the companies liable. Ferrero has implemented child labor monitoring programs through its Ferrero Farming Values initiative and publishes annual progress reports. The issue remains ongoing across the chocolate industry.
Nestle Acquisition Antitrust Review: The 2018 sale of Nestle's U.S. confectionery business to Ferrero was reviewed by the U.S. Federal Trade Commission. The FTC approved the transaction without requiring divestitures, determining that the acquisition did not substantially reduce competition in the U.S. confectionery market. The review was completed in January 2018.
Brands Owned by Ferrero
- Ferrero Rocher - Italian premium chocolate brand owned by Ferrero Group, known for its distinctiv...
- Nutella - Italian chocolate hazelnut spread brand owned by Ferrero Group, the world's best...
Butterfinger Ownership: Pros & Cons
Advantages
- +Access to Ferrero's global manufacturing expertise and supply chain infrastructure
- +Higher-quality ingredients following the 2019 reformulation, including removal of artificial flavors and TBHQ
- +Ferrero's sustainable cocoa and palm oil sourcing programs improve the brand's ethical profile
- +Investment in the Bloomington, Illinois production facility with a $214 million expansion
- +Part of the third-largest chocolate company globally, providing scale advantages
Considerations
- -Butterfinger is a secondary brand within Ferrero's portfolio, receiving less investment than Nutella or Ferrero Rocher
- -Significantly lower market share than Reese's in the peanut butter chocolate segment
- -Limited international distribution compared to Ferrero's global brands
- -Cocoa supply chain child labor concerns affect the broader chocolate industry, including Ferrero
- -Ferrero is privately held, meaning no public financial transparency for brand-level performance
Frequently Asked Questions About Butterfinger
Sources & Further Reading
- Ferrero Group Official Website
- Ferrero Sustainability Report
- Butterfinger Official Website
- National Confectioners Association: U.S. Chocolate Market Data
- IRI: U.S. Confectionery Sales Data
- FDA: Food Recalls Database
- Ferrero Farming Values: Cocoa Sourcing Program
- RSPO: Roundtable on Sustainable Palm Oil Membership Directory
- Wikidata: Butterfinger
- Open Food Facts: Butterfinger
Where to Buy
Disclosure: We may earn commission from purchasesCompetitors to Butterfinger
These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.
| Brand | Parent Company | Country | Founded | Market Position | Primary Market | Gender Target |
|---|---|---|---|---|---|---|
| Ferrero | Italy | 1921 | Mass market | United states | All-ages | |
| Mars Inc | USA | 1941 | Mass market | Global | All-ages | |
| Mars Inc | USA (Mars) | 1923 | Us top-5-candy-bar | Global | All-consumers | |
| Mars Inc | USA | 1930 | Mass market | Global | Unisex | |
| Nestle | United Kingdom | 1935 | Mass market | Europe | All-ages | |
| Mondelez International | England | 1824 | Mass market | Global | All Genders |
Learn More About Competitors

Baby Ruth
Owned by Ferrero
American chocolate candy bar with peanuts, caramel, and chocolate, founded in 1921 by Curtiss Candy Company and owned by Ferrero Group since January 2018.

M&M's
Owned by Mars, Incorporated
American brand of candy-coated chocolate confections produced by Mars, Incorporated, one of the world's best-selling candy brands.

Milky Way
Owned by Mars, Incorporated
American nougat, caramel, and chocolate candy bar owned by Mars, Incorporated, introduced in 1923. One of the top-selling candy bars in the United States, with a distinct formulation difference between US and European versions.

Snickers
Owned by Mars, Incorporated
American chocolate bar brand featuring nougat, caramel, peanuts, and chocolate, owned by Mars, Incorporated and distributed globally.

Aero
Owned by Nestlé S.A.
British chocolate brand known for its distinctive aerated, bubbly texture, produced and distributed by Nestle and sold primarily in the United Kingdom, Canada, and select international markets.

Cadbury
Owned by Mondelez International
British confectionery brand known for Dairy Milk chocolate, owned by Mondelez International.
Competitive Analysis
Market Positioning: Butterfinger competes with 6 brands in the same categories, ranging from mass market to luxury positioning.
Geographic Distribution: Competitors are headquartered across multiple regions, indicating global competition in this market segment.
Brand Heritage: Competitor brands range from established heritage brands to newer market entrants, with founding years spanning several decades.
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