New Britain Palm Oil has signed a $100m deal to supply Ferrero, the Italian confectionery maker, with sustainable palm oil as food producers come under pressure to source commodities ethically and to stop using hydrogenated fats.
Ferrero, whose brands include Ferrero Rocher, Nutella and Tic-Tac, stopped using hydrogenated fats two years ago to assuage consumers’ health concerns and now uses palm oil instead.
Greenpeace last year criticised Ferrero for not buying sustainable palm oil for use in Nutella, claiming the privately aowned Italian company was contributing to deforestation.
Alessandro Cagli, corporate social responsibility director for the Ferrero Group, said “increased scrutiny from non-governmental organisations” had spurred it to buy sustainable oil.
Consumers prefer companies to use sustainable raw materials if they do not affect products’ taste or raise prices, Mr Cagli said, adding Ferrero uses palm oil to create a “creaminess” in its confectionery brands.
Cadbury New Zealand this summer was hit by an environmental backlash after it replaced cocoa butter in its Dairy Milk chocolate with palm oil. The company has since stopped using palm oil.
Ferrero said agreement with New Britain, which will supply oil from a factory being built in Papua New Guinea, will provide about a quarter of its palm oil needs. It expects the company to eventually supply all its requirements.
Alan Chaytor, executive director of New Britain, said it expected to sell oil to more food producers when it completes construction of a factory in the UK early next year.
Ferrero declined to specify exactly how much palm oil it buys annually but said volumes were lower than its sugar, cocoa, hazelnut and milk purchases.
New Britain’s shares have risen 56 per cent over the past year to trade at 385p.
More Recent Palm Oil News 
- Crude Palm Oil Ends Up On Weekend Short Covering; Upside Limited
- Crude Palm Oil Recovers Late On Short Covering
- Crude Palm Oil Ends Down As Demand Prospects Weaken
- Crude Palm Oil Rises Slightly; Weak Demand Limits Upside
- Crude Palm Oil Ends Up On South America Crop Worries
- Crude Palm Oil Rises On Pre-Holiday Short-Covering
- Crude Palm Oil Falls Due To Bearish Export Outlook
- Crude Palm Oil Ends Higher On South America Weather
- Crude Palm Oil Ends Down On Profit Taking; USDA Report In Focus
- Crude Palm Oil Rises In Light Trade; USDA Data In Focus
- Crude Palm Oil Steady; South America Weather May Underpin
- Crude Palm Oil Ends Up In Light Trade; Fresh Cues Awaited
- Crude Palm Oil Ends Up On Weather Concerns; More Gains Likely
- Crude Palm Oil Ends Down On Profit Taking, Europe Worries
- CPO Ends Unchanged; May Slip Toward MYR3,200 After Recent Rally
PRO Palm Oil Live Market News
- European Veg Oil PM Palm Oil & Lauric Oil Prices – Feb 3
- European Veg Oil AM Palm Oil & Lauric Oil Prices – Feb 3
- India Edible Oil Prices Down On New Crop Arrival, Strong Rupee
- India Commodity Prices Including Palm Oil – Agriculture
- Crude Palm Oil Ends Up On Weekend Short Covering; Upside Limited
- Malaysian PM Cash Market Prices For Palm Oil – Feb. 3
- Indonesia Eyes Lower Pakistan CPO Duty, Adds Trade Path To Central Asia
- China Soybean Futures Retreat From 12-Week High On Profit Taking, Argentina Rains
- Malaysia Cash Palm Olein Prices Slip On Tepid Demand
- China Dalian Commodity Exchange Grain Stocks, Feb 03
- China Dalian Grain Futures Closing Prices, Volume
- BMD Crude Palm Oil (CPO) Futures Lower Midday; May Fall More
- Malaysian AM Cash Market Prices For Palm Oil – Feb. 3
- Malaysia May Reform CPO Export Tax Structure -Report
- BMD Crude Palm Oil (CPO) Futures Steady; To Remain Rangebound
