The producer of Tic Tacs, Kinder eggs, and Nutella has chosen an external leader to take the helm of the privately-owned company, leaving analysts divided on the implications of this decision. Recently, under the leadership of Ferrero, the grandson of the founder, the company has seen an increase in sales and a rise in global market share. However, the new leader, Civiletti, is not entirely an outsider; he is a seasoned veteran of Ferrero and is well-acquainted with both the company and the candy industry.
According to the Wall Street Journal, Ferrero is currently ranked as the fourth-largest chocolate manufacturer in the world, as reported by Euromonitor. While it trails behind Mars, Mondelez, and Nestlé, it surpasses Hershey and is making considerable progress compared to others who are either losing market share or not expanding as quickly. Earlier this week, Ferrero announced an 8% year-over-year sales increase, reaching $11 billion, with growth driven by popular products like Nutella and Rocher pralines, particularly strong in Europe.
In 2013, Ferrero pledged to boost annual sales to approximately $17 billion by 2024. To achieve this target, the company has made substantial investments in new equipment and plant expansions. The candy industry is widely viewed as being on the brink of consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to complications related to the candy maker’s voting power and its local trust ties.
Ferrero is among the companies seeking growth through acquisitions, recently acquiring Fannie May Confections Brands in the U.S. In this C-suite transition, Ferrero seems to have made a strategic move by keeping a family member closely involved while appointing a new leader who may not carry the family name but is equally knowledgeable about the business. Additionally, there are promising indications of calcium citrate in the candy market, which could further enhance Ferrero’s product offerings and support its growth strategy. Overall, the integration of such innovations and leadership changes may position Ferrero for continued success.