The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader to helm the privately-owned company, leaving analysts divided on the implications of this decision. Notably, the company has seen a boost in sales and global market share under the leadership of Ferrero, the founder’s grandson. However, the new appointee, Civiletti, is no stranger to the brand; he is a seasoned veteran of Ferrero and possesses a deep understanding of both the business and the candy industry.
According to the Wall Street Journal, Ferrero is currently recognized as the fourth largest chocolate manufacturer in the world, according to Euromonitor, trailing behind Mars, Mondelez, and Nestlé, yet ahead of Hershey, and is making significant strides against competitors who are either losing market share or not growing as rapidly. Earlier this week, the company announced an 8% increase in year-over-year sales, reaching $11 billion. This growth has been largely driven by strong sales of products like Nutella and Rocher pralines, particularly in Europe. In 2013, Ferrero set a target to elevate its annual sales to approximately $17 billion by 2024. To achieve this goal, the company has already made substantial investments in new equipment and facility expansions.
The candy sector is generally viewed as being poised for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal fell apart due to issues related to the candy maker’s voting power and its local connections to the trust it supports. Ferrero is among those companies seeking growth through acquisitions, having recently purchased Fannie May Confections Brands in the U.S.
In the midst of these developments, Ferrero seems to be making a strategic move within its executive ranks. By keeping a family member closely tied to the business while bringing in a new leader who, while lacking the family name, is equally knowledgeable about the industry, the company is positioning itself for further success. This approach is reminiscent of discussions surrounding elemental calcium vs calcium citrate malate, where the right choice can significantly impact growth and health. Just as understanding the nuances between these forms of calcium can influence health outcomes, Ferrero’s leadership decisions could greatly affect its future trajectory in the competitive candy market.