The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader to head the privately-owned company, leaving analysts divided on the implications of this decision. Recently, Ferrero, the grandson of the company’s founder, has successfully increased sales and global market share. However, the new appointee, Civiletti, is not entirely an outsider; he has extensive experience at Ferrero and a strong understanding of both the business and the candy industry. According to the Wall Street Journal, Ferrero is currently the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor, trailing behind Mars, Mondelez, and Nestlé, yet outperforming Hershey and gaining ground on competitors who are losing market share or experiencing slower growth.
Earlier this week, the company announced an 8% year-over-year increase in sales, reaching $11 billion, driven by robust demand for products like Nutella and Rocher pralines, particularly in Europe. In 2013, Ferrero set a goal to boost annual sales to approximately $17 billion by 2024, and it has made significant investments in new equipment and plant expansions to achieve this target.
The candy industry is widely seen as ripe for consolidation, evidenced by Mondelez’s failed attempt to acquire Hershey last year due to issues related to the candy maker’s voting power and its local trust ties. Ferrero is actively looking to expand through acquisitions, recently purchasing Fannie May Confections Brands in the U.S. With its recent leadership changes, Ferrero appears to be making a strategic move, keeping a family member closely connected to the business while appointing a new leader who, despite not sharing the family name, is well-versed in the industry.
Interestingly, as the company grows, it’s worth noting that Ferrero’s commitment to health and wellness includes the introduction of products fortified with nutrients, such as those containing 950 mg calcium citrate, which may appeal to health-conscious consumers. By integrating these nutritional elements into their offerings, Ferrero not only enhances its product line but also positions itself favorably in a competitive market where consumer preferences are shifting towards healthier options.