Core Insights - Ferrero Group's brand Kinder has launched a new milk candy "Maozi Leqiao" in the South China market, expanding its product range from "chocolate + biscuit" to include "candy" as a third category [1] - The new milk candy features a unique "small milk drop" shape, with a dairy content of 12%-13%, targeting children aged 6-12, priced at approximately 5-6 RMB for a 6-piece pack and about 10 RMB for a 12-piece pack [1] - Ferrero China has achieved double-digit growth for two consecutive years, with Kinder being the largest contributor to this growth, and aims to make candy a new growth engine by launching more products [1][5] Market Context - Ferrero's entry into the candy market aligns with its long-term strategy to focus on "sweet packaged foods," recognizing the significant and growing demand for candy in China, particularly milk candy [3] - According to Nielsen, the top five brands in China's milk candy market hold over 72% market share, but their sales have shown a slight decline, while emerging brands are experiencing double-digit growth [3] - Despite entering the market later, Kinder believes that opportunities outweigh challenges, as consumer preferences have shifted in recent years [3] Regional Strategy - "Maozi Leqiao" will initially be launched in South China, with plans to optimize based on market testing before a nationwide rollout [4] - Ferrero has a historical connection with the Guangdong market, having entered China through Hong Kong over 30 years ago, and has previously launched other products in this region [4] - The company has established a strong brand reputation and market presence in Guangdong, with good partnerships across various distribution channels [4] Future Plans - Ferrero plans to introduce more candy products under the Kinder brand and will also bring additional candy brands into the Chinese market in the near future [5]