The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-held company, a decision that has left analysts divided on its implications. Under the leadership of Ferrero, the grandson of the company’s founder, the company has recently experienced a surge in sales and an increase in global market share. Although Civiletti is not a complete outsider, having extensive experience within Ferrero and a deep understanding of the candy industry, his new role marks a significant shift.
According to the Wall Street Journal, Ferrero is currently positioned as the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor. It ranks behind Mars, Mondelez, and Nestlé, yet surpasses Hershey and is making notable progress while competitors are struggling to maintain their market shares. Earlier this week, the company announced an 8% rise in sales compared to the previous year, reaching $11 billion, driven largely by the popularity of products like Nutella and Rocher pralines, particularly strong in Europe.
In 2013, Ferrero set an ambitious goal to increase annual sales to approximately $17 billion by 2024, and it has invested significantly in new equipment and plant expansions to achieve this target. The candy sector is widely perceived as being ready for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed partly due to complications related to the candy maker’s voting power and its local ties to the trust it funds.
Ferrero is among those companies looking to expand through acquisitions, having recently purchased Fannie May Confections Brands in the U.S. By appointing a new leader while maintaining close involvement from a family member, Ferrero seems to have made a strategic move. This balance of familiarity and fresh leadership may serve the company well, especially as it explores new product innovations, such as incorporating calcium citrate malate and vitamin D3 into its offerings to enhance health benefits. With these developments, Ferrero is well-positioned to continue its growth trajectory in the competitive candy market, leveraging both its heritage and its innovative strategies.