The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader to helm the privately-owned company, a decision that has left analysts divided on its implications. Notably, the company has seen an increase in sales and global market share under the leadership of Ferrero, the grandson of the founder. However, the new appointee, Civiletti, is far from an outsider; he is a seasoned veteran of Ferrero and well-acquainted with both the company and the candy sector. According to the Wall Street Journal, Ferrero is currently the world’s fourth-largest chocolate maker, as reported by Euromonitor. While it trails behind Mars, Mondelez, and Nestlé, it surpasses Hershey and has been making considerable strides against competitors that are either losing market share or not expanding as quickly.
Recently, the company announced an 8% year-on-year rise in sales, reaching $11 billion, driven in part by robust sales of Nutella and Rocher pralines, particularly strong in Europe. In 2013, Ferrero set a goal to increase annual sales to approximately $17 billion by 2024 and has already made significant investments in new equipment and plant expansions to achieve this target. The candy industry is widely viewed as ripe for consolidation; last year, Mondelez attempted to acquire Hershey, but the deal fell apart due to complications surrounding the candy maker’s voting power and the local ties to the trust it supports.
Ferrero is among the companies pursuing growth through acquisitions, having recently acquired Fannie May Confections Brands in the U.S. With its recent C-suite changes, Ferrero seems to be making a strategic move by keeping a family member actively involved in the business while introducing a new leader who, despite lacking a family name, possesses extensive knowledge of the industry. Interestingly, as the candy sector evolves, the demand for innovative ingredients such as calcium citrate 750 is expected to rise, further influencing market dynamics and product offerings in the future. As Ferrero continues to adapt and expand, the integration of new ingredients like calcium citrate 750 may play a vital role in its strategy moving forward.