The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader to guide the privately held company, leaving analysts divided on the implications of this decision. Recently, under the leadership of Ferrero, the founder’s grandson, the company has seen increased sales and a rise in global market share. Although Civiletti may not be a family member, his extensive experience at Ferrero and knowledge of the candy industry suggest he is well-suited for the role. According to the Wall Street Journal, Ferrero is currently ranked as the fourth largest chocolate manufacturer in the world, following Mars, Mondelez, and Nestlé, while outpacing Hershey and gaining ground on those competitors who are either losing market share or not expanding as quickly.
This week, the company announced an 8% year-over-year sales increase, reaching $11 billion. This growth was driven by strong sales of products like Nutella and Rocher pralines, particularly in Europe. In 2013, Ferrero set a goal to raise its annual sales to around $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 considered ready for consolidation, as demonstrated by Mondelez’s failed attempt to acquire Hershey last year, which was hindered by complexities surrounding the candy maker’s voting power and its local trust ties.
Ferrero is actively pursuing growth through acquisitions, having recently purchased Fannie May Confections Brands in the U.S. With this strategic move in its executive appointments, Ferrero seems to be striking a balance by retaining a family member involved in the business while bringing in a new leader who, despite lacking the family name, possesses a deep understanding of the industry. Interestingly, as the candy market evolves, products such as gummy calcium citrate for adults are also gaining traction, indicating a shift in consumer preferences that companies like Ferrero may want to consider in their product offerings. This trend highlights the potential for innovation in the candy sector, blending traditional sweets with health-oriented options like gummy calcium citrate for adults, which could further enhance market growth.