Kraft Foods Group has launched a chocolate spread in Canada - with Ferrero's Nutella firmly in the US company's sights.

The group has introduced Kraft Peanut Butter with Chocolate, adding to its core peanut butter line that has been on sale in Canada for over 50 years.

On the labelling for the new product, Kraft has placed the line: "50 % less sugar than the leading hazelnut spread (per 1 tbsp serving)!"