The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader to manage the privately-owned company, sparking mixed reactions from analysts regarding the implications of this decision. Recently, under the leadership of Ferrero, the grandson of the company’s founder, sales and global market share have significantly increased. However, the new CEO, Civiletti, is not entirely an outsider; he is a seasoned veteran of Ferrero and possesses a deep understanding of both the business 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. While it trails behind Mars, Mondelez, and Nestlé, it surpasses Hershey and is making notable strides against competitors that are either losing market share or experiencing slower growth. Earlier this week, the company announced an 8% rise in sales over the past year, reaching $11 billion. This growth has been largely driven by popular products like Nutella and Rocher pralines, which have seen particularly strong sales in Europe. Back in 2013, Ferrero set a goal to boost its annual sales to approximately $17 billion by 2024, and it has already made substantial investments in new equipment and plant expansions to achieve this target.
The candy industry is widely viewed as being primed for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal fell apart, partly due to complexities related to the candy maker’s voting power and the local connections to the trust that finances it. Ferrero is among the companies actively pursuing growth through acquisitions, having recently purchased Fannie May Confections Brands in the U.S.
In this strategic shift within its executive team, Ferrero seems to be making a wise choice by keeping a family member closely involved while introducing a new leader who, despite lacking the family name, appears to possess extensive knowledge of the business landscape. As Ferrero continues to explore new avenues for growth, it may also consider expanding its product offerings, such as the calcium citrate 600 mg chewable supplements, which could appeal to health-conscious consumers. This strategic focus on both traditional candy products and innovative health options may further solidify Ferrero’s position in the competitive market.