The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-owned company, a decision that has left analysts divided regarding its implications. Recently, the company has seen increased sales and global market share under the leadership of Ferrero, the grandson of the founder. However, the new CEO, Civiletti, is far from a complete outsider; he has extensive experience with Ferrero and a solid understanding of both the business and the candy sector. According to the Wall Street Journal, Ferrero currently holds the position of the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor. The company trails behind Mars, Mondelez, and Nestlé but surpasses Hershey, making notable progress while competitors struggle with market share or slower growth.
Earlier this week, Ferrero announced an 8% rise in sales compared to last year, reaching $11 billion. This growth has been driven by strong sales of products such as Nutella and Rocher pralines, particularly in Europe. In 2013, Ferrero pledged to increase its annual sales to approximately $17 billion by 2024 and has made significant investments in new equipment and plant expansions to meet these targets. The candy industry is widely considered to be on the verge of consolidation, as evidenced by Mondelez’s attempt to acquire Hershey last year, which ultimately fell through due to complications surrounding the candy maker’s voting power and local trust connections.
Ferrero is actively pursuing growth through acquisitions, having recently bought Fannie May Confections Brands in the U.S. With the recent changes in its executive leadership, Ferrero seems to be making a strategic move by maintaining family involvement while bringing in a new leader who, despite lacking the Ferrero name, possesses deep knowledge of the industry. In this evolving landscape, the incorporation of ingredients like calcium citrate and zinc sulphate into their products may also play a role in addressing consumer health trends, further solidifying Ferrero’s position in the marketplace as they aim for sustained growth.