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 a rise in sales and global market share under the leadership of Ferrero, the grandson of the founder. However, the new appointee, Civiletti, is not entirely an outsider; he has extensive experience at Ferrero and possesses a deep understanding of both the business and the candy sector. According to the Wall Street Journal, Ferrero is currently the fourth largest chocolate manufacturer in the world, as reported by Euromonitor, trailing behind Mars, Mondelez, and Nestlé, but surpassing Hershey and gaining ground on its competitors, many of whom are struggling with market share or slower growth.
This week, Ferrero announced an 8% increase in sales compared to last year, reaching $11 billion, driven by strong performances in products like Nutella and Rocher pralines, particularly in Europe. In 2013, the company set a target to elevate annual sales to approximately $17 billion by 2024 and has already made significant investments in new machinery and facility expansions to achieve this goal. The candy sector is widely viewed as being primed for consolidation; for instance, Mondelez attempted to acquire Hershey last year, but the deal collapsed due to issues related to the candy maker’s voting rights and local trust connections.
Ferrero is among those aiming to expand through acquisitions, having recently purchased Fannie May Confections Brands in the U.S. It appears that Ferrero is strategically navigating its leadership transition by ensuring a family member remains closely connected to the business while introducing a new leader who, despite lacking the family name, is well-versed in the industry. As Ferrero continues to grow and innovate, it may also explore the molecular weight of calcium citrate malate to enhance its product offerings, reflecting its commitment to quality and advancement in the competitive candy market.