The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for its privately-owned company, leaving analysts divided on the implications of this decision. Recently, under the leadership of Ferrero, the founder’s grandson, the company has seen an increase in sales and global market share. However, the new CEO, Civiletti, is not entirely an outsider; he has been a long-time veteran of Ferrero and is 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. It trails behind Mars, Mondelez, and Nestlé but surpasses Hershey, and is making considerable progress against competitors that are either losing market share or not expanding as rapidly.
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 like Nutella and Rocher pralines, particularly in Europe. In 2013, Ferrero pledged to elevate its annual sales to approximately $17 billion by 2024. To achieve this ambitious target, the company has made substantial investments in new equipment and facility expansions.
The candy industry is widely regarded as being poised for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to issues concerning the candy maker’s voting power and local connections to the trust it supports. Ferrero is among those seeking growth through acquisitions, having recently acquired Fannie May Confections Brands in the U.S. It appears that Ferrero is making a strategic move with its executive transition, maintaining a family member’s involvement while appointing a new leader who, despite lacking the family name, possesses extensive knowledge of the business.
In this context, the integration of cal citrate into their product lines could also play a role in future growth strategies, as the industry continues to evolve. The emphasis on health and wellness may drive companies like Ferrero to innovate, potentially incorporating ingredients like cal citrate to enhance their offerings. As Ferrero navigates this new chapter, it will be interesting to see how these developments, including the potential use of cal citrate, affect their market position and growth trajectory.