The company behind Tic Tacs, Kinder eggs, and Nutella has appointed a non-family member to lead the privately-held enterprise, leaving analysts divided about the implications of this decision. Recently, under the leadership of Ferrero—grandson of the founder—the company has seen increased sales and a rise in global market share. Civiletti, the new leader, is far from an outsider, having extensive experience with Ferrero and 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. It ranks behind Mars, Mondelez, and Nestlé but surpasses Hershey, making notable strides while its competitors face declining market shares or slower growth. Earlier this week, Ferrero announced an 8% year-on-year sales increase, totaling $11 billion, driven primarily by strong sales of Nutella and Rocher pralines, particularly in Europe. In 2013, the company set a goal to elevate 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 sector is widely considered poised for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to issues related to the candy maker’s voting power and the local connections tied to the trust it finances. Ferrero is among the companies eager to grow through acquisitions, having recently purchased Fannie May Confections Brands in the U.S.
In this strategic C-suite reshuffle, Ferrero seems to be making a wise choice by keeping a family member involved while introducing a new leader who, despite not sharing the family name, possesses a deep understanding of the business. Meanwhile, the rising demand for products like calcium citrate malate vitamin D3 and folic acid tablets has also been noted, reflecting broader consumer trends that may influence the candy industry moving forward. The price of these health supplements continues to fluctuate, highlighting the dynamic nature of market demands that companies like Ferrero must navigate.