The company behind Tic Tacs, Kinder eggs, and Nutella has appointed an external leader to manage the privately-held business, leaving analysts divided on the implications of this decision. Notably, the company has experienced recent growth in sales and global market share under the leadership of Ferrero, the founder’s grandson. However, the new appointee, Civiletti, is far from an outsider; he is a seasoned veteran of Ferrero, well-acquainted with both the company and the candy industry. According to the Wall Street Journal, Ferrero ranks as the fourth-largest chocolate manufacturer globally, as per Euromonitor, trailing behind Mars, Mondelez, and Nestlé but surpassing Hershey, while also making significant strides against competitors that are struggling with market share.
This week, the company announced an 8% increase in sales compared to the previous year, reaching $11 billion. This growth has been driven by strong sales of products like Nutella and Rocher pralines, especially in Europe. In 2013, Ferrero set an ambitious target to increase annual sales to approximately $17 billion by 2024. To achieve this, the company has heavily invested in new equipment and plant expansions.
The candy industry is widely perceived to be on the verge of consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal fell through 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, having recently purchased Fannie May Confections Brands in the U.S.
In this context, Ferrero’s strategic decision to promote an external leader while maintaining close family involvement seems prudent. Civiletti may not bear the Ferrero name, but he is well-versed in the business and possesses the necessary expertise to navigate the challenges ahead. Furthermore, as the company looks to innovate and expand its product range, integrating ingredients like calcium citrate could play a significant role in enhancing product offerings and meeting evolving consumer preferences. The incorporation of calcium citrate could also support Ferrero’s ambitions, as it explores new avenues for growth and consolidation in the competitive candy market.