Ferrero has said that Nutella is safe following the release of a study by the European Food Safety Authority (EFSA) that sparks concerns among consumers fond of the chocolate spread. The EFSA claims that the product has a key ingredient which promotes cancer growth in laboratory mice.

According to the EFSA report, refining palm oil at a temperature of 200 degrees Celsius might trigger the release of glycidyl fatty esters (GE), a potentially cancer-causing chemical. The researchers noted that this substance may cause tumor growth in mice and rats, making it a potential health risk.

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However, the authorities did not release a recommendation to stop eating the product as a further study has to be conducted to assess the risk level linked to the product.

Palm oil is an essential ingredient that preserves the product for a longer time and provides creaminess.

Makers of Nutella use approximately 185,000 tons of the allegedly carcinogenic ingredient every year. Ferrero asserted that it would continue using palm oil in its product. Ferrero purchasing manager Vincenzo Tapella said, "making Nutella without palm oil would produce an inferior substitute for the real product, it would be a step backward."

Reuters added that there would be economic implications for switching from palm oil to another ingredient. A ton of palm oil only costs about $800 while its potential replacements, sunflower oil and grapeseed oil, cost $845 and $920 respectively for every ton.

A representative of Ferrero David Ely said that "the health and safety of consumers is an absolute and first priority for Ferrero and we confirm that Ferrero products are safe." He added that the company conducts regular monitoring of factors that may compromise consumers' health.

Coop, Italy's biggest chain of supermarket has raised a "precaution" alert and boycotted branded products containing palm oil. In response to the issue, Ferrero has organized an advertising campaign in the country to assure consumers that Nutella is safe.