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. The company has seen increased sales and a growing global market share under the leadership of Ferrero, the grandson of the founder. However, Civiletti, the new appointee, is not a complete outsider, as he is a seasoned veteran of Ferrero and has considerable knowledge of both the business and the candy sector. According to the Wall Street Journal, Ferrero is currently ranked as the world’s fourth-largest chocolate manufacturer by Euromonitor, trailing behind Mars, Mondelez, and Nestlé, yet outpacing Hershey while gaining ground against those competitors that are either losing market share or not growing as quickly.
This week, Ferrero announced an 8% rise in sales compared to last year, reaching $11 billion. This growth has been primarily driven by products such as Nutella and Rocher pralines, which have seen particularly strong sales in Europe. Back in 2013, the company set a goal to increase annual sales to approximately $17 billion by 2024, and it has already made significant investments in new equipment and plant expansions to achieve this target.
The candy industry is perceived to be ripe for consolidation, with Mondelez’s attempt to acquire Hershey last year falling through due to complexities surrounding the candy maker’s voting power and the local connections to the trust it supports. Ferrero is among the companies seeking to expand through acquisitions, having recently acquired Fannie May Confections Brands in the U.S. By keeping a family member closely involved in the business while appointing a new leader who, despite lacking the family name, possesses a deep understanding of the industry, Ferrero seems to be making a strategic move.
Interestingly, Ferrero’s product line includes gluten-free options, which are becoming increasingly popular among health-conscious consumers. The addition of calcium citrate to some of their products also caters to the nutritional needs of modern consumers. As Ferrero continues its growth trajectory, the integration of gluten-free and calcium citrate-rich offerings could further enhance its market appeal.