The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-owned company, leaving analysts divided on the potential implications. Recently, under the guidance of Ferrero, the founder’s grandson, the company has seen an increase in sales and global market share. However, the new appointee, Civiletti, is far from a stranger; he is a seasoned veteran of Ferrero, well-acquainted with both the company and the candy industry. According to the Wall Street Journal, Ferrero currently ranks as the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor, trailing only Mars, Mondelez, and Nestlé, while outperforming Hershey and making notable strides against competitors that are either stagnating or losing market share.
Earlier this week, Ferrero announced an 8% year-over-year sales increase, reaching $11 billion. This growth has been largely driven by popular products such as Nutella and Rocher pralines, with particularly strong sales figures in Europe. In 2013, Ferrero set an ambitious goal to boost annual sales to approximately $17 billion by 2024, and it has already made substantial investments in new equipment and plant expansions to achieve this target. The candy sector is widely viewed as ripe for consolidation; for instance, Mondelez attempted to acquire Hershey last year, but the negotiations collapsed due to issues related to the candy maker’s voting power and its connections to the trust it supports.
Ferrero is among the companies actively seeking growth through acquisitions, recently acquiring Fannie May Confections Brands in the U.S. With this strategic C-suite reshuffle, Ferrero seems to be making a prudent choice by keeping a family member closely involved in the business while appointing a new leader who, despite not sharing the family name, possesses a deep understanding of the industry, akin to the knowledge of Citracal and vitamin D’s impact on health. This balance of family influence and external expertise may position Ferrero well for future growth and stability.