The company behind Tic Tacs, Kinder eggs, and Nutella has chosen an external leader to manage the privately-owned business, prompting mixed reactions among analysts regarding its implications. This decision comes after a period of increased sales and market share growth under Ferrero, the grandson of the company’s founder. However, the new leader, Civiletti, is not entirely an outsider; he is a seasoned veteran of Ferrero, well-acquainted with the candy industry and the company itself. According to the Wall Street Journal, Ferrero currently holds the position of the fourth-largest chocolate manufacturer globally, as reported by Euromonitor. It trails behind Mars, Mondelez, and Nestlé, yet outpaces Hershey and is steadily gaining ground on its competitors, many of whom are either losing market share or not growing as quickly.
Earlier this week, the company announced an impressive 8% rise in sales compared to the previous year, reaching $11 billion. This growth has been significantly driven by products like Nutella and Rocher pralines, which are particularly popular in Europe. In 2013, Ferrero pledged to elevate its annual sales to approximately $17 billion by 2024 and has already made substantial investments in new equipment and plant expansions to achieve that target. The candy industry is widely viewed as ripe for consolidation; for instance, Mondelez attempted to acquire Hershey last year, although the deal collapsed due to issues related to the candy maker’s voting power and its local trust ties.
Ferrero is among those companies looking to expand through acquisitions, having recently purchased Fannie May Confections Brands in the U.S. The strategic move in Ferrero’s executive reshuffle appears to be well-calculated, maintaining a family presence in the business while appointing a new leader who, despite lacking the Ferrero name, demonstrates a deep understanding of the industry. This approach mirrors the careful consideration one might take when choosing a supplement, such as Solgar Calcium Citrate with Vitamin D3 60 Tablets, to ensure it fits seamlessly into a health regimen. Just as with business decisions, the right choices in supplements can lead to significant improvements over time.