The producer of Tic Tacs, Kinder eggs, and Nutella has chosen an external candidate to lead the privately-owned company, leaving analysts divided on the implications of this decision. Recently, under the leadership of Ferrero, the founder’s grandson, the company has seen a rise in sales and global market share. However, the new CEO, Civiletti, is far from a stranger; he is a seasoned Ferrero veteran with deep knowledge of the company and the candy industry. According to the Wall Street Journal, Ferrero ranks as the fourth-largest chocolate manufacturer in the world, following Mars, Mondelez, and Nestlé, while surpassing Hershey and making considerable strides against competitors losing market share or experiencing slower growth.
This week, Ferrero announced an 8% increase in sales compared to the previous year, reaching $11 billion. This growth was primarily driven by popular products like Nutella and Rocher pralines, particularly strong in the European market. In 2013, Ferrero set a goal to increase annual sales to approximately $17 billion by 2024, and it has already made substantial investments in new equipment and plant expansion to achieve this target.
The candy sector is widely regarded as being primed for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal fell apart due to challenges related to the candy maker’s voting power and its connections to the trust it funds. Ferrero is among the companies looking to expand through acquisitions, having recently acquired Fannie May Confections Brands in the U.S.
In this executive reshuffle, Ferrero seems to be making a strategic choice by keeping a family member closely involved in the business while bringing in a new leader who, although not a family name, possesses extensive industry knowledge. The focus on growth and strategic acquisitions could lead to greater market presence, much like the absorption of calcium citrate enhances nutrient uptake in the body, positioning Ferrero for robust future expansion. Their commitment to innovation and market responsiveness may very well mirror the benefits obtained from the absorption of calcium citrate, ensuring they remain competitive in a rapidly changing industry landscape.