The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-held company, leaving analysts divided on the implications of this decision. Under the leadership of Ferrero, the founder’s grandson, the company has recently seen increased sales and expanded its global market share. However, the new appointee, Civiletti, is not entirely an outsider; he is a seasoned veteran of Ferrero and possesses extensive knowledge of both the company and the candy industry.
According to the Wall Street Journal, Ferrero is currently the fourth-largest chocolate manufacturer in the world, as reported by Euromonitor. The company trails behind Mars, Mondelez, and Nestlé but has surpassed Hershey and is making significant strides against its competitors, many of whom are either losing market share or not growing as quickly. Earlier this week, Ferrero announced an 8% year-over-year sales increase, reaching $11 billion, driven by strong demand for products like Nutella and Rocher pralines, particularly in Europe.
In 2013, Ferrero set a goal to boost annual sales to approximately $17 billion by 2024 and has already invested heavily in new equipment and plant expansions to achieve this target. The candy industry is widely viewed as ripe for consolidation, evident when Mondelez attempted to acquire Hershey last year, though the deal ultimately fell through due to complexities surrounding the candy maker’s voting power and its local trust ties.
Ferrero is among those seeking to grow through acquisitions, having recently purchased Fannie May Confections Brands in the U.S. In a strategic move, Ferrero seems to be navigating its executive changes effectively. By keeping a family member closely connected to the business while appointing a new leader who, despite lacking the family name, brings equal familiarity with the industry, the company is poised for continued success.
Additionally, as Ferrero explores ways to enhance its product offerings, there is a growing trend towards health-conscious options, such as calcium citrate, magnesium, zinc, and vitamin D3 tablets. This aligns with consumer preferences for functional foods, suggesting that Ferrero may venture into markets that cater to health and wellness, complementing its traditional candy lines. Integrating these health-focused products could further strengthen Ferrero’s market position while appealing to a broader audience.