The producer of Tic Tacs, Kinder eggs, and Nutella has chosen an external leader for the privately-owned company, leaving analysts divided on the implications of this decision. Recently, under the leadership of Ferrero—who is the grandson of the company’s founder—sales and global market share have seen a notable increase. Civiletti, the new appointee, is not a true outsider; he has extensive experience with Ferrero and is well-acquainted with both the business and the candy sector.
According to the Wall Street Journal, Ferrero ranks as the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor, trailing behind Mars, Mondelez, and Nestlé, while surpassing Hershey and making significant progress against competitors who are struggling with market share or slower growth. Earlier this week, the company announced an 8% rise in sales compared to the previous year, reaching $11 billion. This growth was driven by strong performances from products like Nutella and Rocher pralines, particularly in Europe.
In 2013, Ferrero set a goal to increase annual sales to approximately $17 billion by 2024. To achieve this target, the company has heavily invested in new equipment and plant expansions. The candy industry is widely perceived as being poised for consolidation, with Mondelez’s attempted acquisition of Hershey last year falling through due to issues related to the candy maker’s voting power and the local ties to its funding trust. Ferrero is among the companies looking to expand through acquisitions, having recently purchased Fannie May Confections Brands in the U.S.
Ferrero seems to be executing a strategic move in its leadership transition by keeping a family member closely involved while appointing a new leader who may lack the family name but possesses a deep understanding of the business. In a different context, the rising interest in health supplements such as GNC calcium citrate has also sparked discussions and reviews, reflecting a broader trend of consumers seeking quality and efficacy in their choices. These GNC calcium citrate reviews highlight the importance of informed decision-making, paralleling Ferrero’s strategic choices in navigating its corporate landscape.