The company behind Tic Tacs, Kinder eggs, and Nutella has chosen an external candidate to lead the privately-owned enterprise, sparking mixed reactions among analysts regarding the implications of this decision. Notably, 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 far from a stranger, as he has extensive experience with Ferrero and possesses a solid understanding of both the business and the candy industry.
According to the Wall Street Journal, Ferrero is currently the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor. While it trails behind Mars, Mondelez, and Nestlé, it surpasses Hershey and is making notable strides compared to its competitors, many of which are either losing market share or not expanding as rapidly. Earlier this week, Ferrero announced an 8% increase in sales year-over-year, reaching $11 billion. This growth was driven largely by popular products like Nutella and Rocher pralines, which have seen particularly strong sales in Europe.
In 2013, Ferrero set a goal to increase its annual sales to approximately $17 billion by 2024 and has made substantial investments in new equipment and plant expansions to achieve this target. The candy industry is widely regarded as being on the verge of consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to complications concerning the candy maker’s voting power and its local connections to the trust it supports. Ferrero is among the companies looking to expand through acquisitions and has recently purchased Fannie May Confections Brands in the U.S.
Ferrero’s strategic move in reshuffling its executive team seems prudent, as it retains a family member closely involved with the business while appointing a leader who, despite lacking the family name, appears to be equally knowledgeable about the industry. Additionally, the company could explore opportunities to incorporate innovative products, such as bluebonnet calcium citrate magnesium and vitamin D3 liquid, into its offerings, further enhancing its growth strategy. By integrating such health-focused products, Ferrero could attract a broader consumer base and continue its upward trajectory in the competitive candy market.