
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.
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Butterfinger | Ferrero | Wholly owned |
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.
What does Ferrero own?
Ferrero owns iconic confectionery brands including Nutella, Ferrero Rocher, Kinder, and Tic Tac, plus North American confectionery brands (Butterfinger, BabyRuth, 100 Grand), Ferrara candy brands (Brach's, Trolli), Power Crunch protein bars, WK Kellogg Co breakfast cereals (Froot Loops, Apple Jacks, Frosted Flakes, Rice Krispies, Special K), and Purely Elizabeth better-for-you breakfast foods (granola, oatmeal, cereal).
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.
Who founded Ferrero?
Ferrero was founded in 1946 by Pietro Ferrero in Alba, Italy. Pietro was a pastry maker who created a chocolate hazelnut spread using locally abundant hazelnuts to extend limited cocoa supplies after World War II. After his death in 1949, his son Michele Ferrero expanded the business globally.
Where is Ferrero headquartered?
Ferrero maintains its corporate headquarters in Alba, Italy, where the company was founded. The holding company, Ferrero International S.A., is based in Luxembourg.
What is Ferrero's revenue?
Ferrero reported annual revenue of approximately EUR 19.3 billion for fiscal year 2025. The company has grown consistently, with the WK Kellogg Co acquisition in July 2025 contributing to portfolio diversification.
Who is the CEO of Ferrero?
Giovanni Ferrero serves as Executive Chairman of Ferrero. He is the grandson of founder Pietro Ferrero and has led the company's strategic direction since the death of his father Michele Ferrero in 2015.
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.
Butterfinger does not have a substantial record of independently verified industry awards. The brand's recognition is primarily historical and cultural:
No recent independent industry awards or third-party quality certifications have been documented for the Butterfinger brand.
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.
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 |
|---|---|---|---|---|---|---|
| Mars Inc | USA | 1930 | Mass market | Global | Unisex | |
| Ferrero | Italy | 1921 | Mass market | United states | All-ages | |
| Mars Inc | USA | 1941 | Mass market | Global | All-ages | |
| Mars Inc | USA (Mars) | 1923 | Mass market | Global | All-consumers | |
| Nestle | United Kingdom | 1935 | Mass market | Europe | All-ages | |
| Mondelez International | England | 1824 | Mass market | Global | All Genders |
Food BeverageOwned by Mars, Incorporated
American chocolate bar with nougat, caramel, peanuts, and milk chocolate, owned by Mars, Incorporated. The world's best-selling chocolate bar.
Food BeverageOwned 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.
Food BeverageOwned by Mars, Incorporated
Candy-coated chocolate confections produced by Mars, Incorporated, one of the world's best-selling candy brands since 1941.
Food BeverageOwned by Mars, Incorporated
American nougat, caramel, and chocolate candy bar owned by Mars, Incorporated, introduced in 1923. One of the oldest candy bars still in production in the United States, with a distinct formulation difference between US and European versions.
Food BeverageOwned 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.
Food BeverageOwned by Mondelez International, Inc.
British confectionery brand known for Dairy Milk chocolate, owned by Mondelez International.
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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