The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-owned company, sparking mixed reactions among analysts about the implications. Under the leadership of Ferrero, the founder’s grandson, the company has recently seen an increase in sales and global market share. However, Civiletti, the new leader, is far from a stranger to the organization, having extensive experience at Ferrero and a deep 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 trails behind Mars, Mondelez, and Nestlé, yet outpaces Hershey and is gaining ground on competitors who are either losing market share or not growing as quickly.
Earlier this week, Ferrero announced an 8% rise in sales year-over-year, reaching $11 billion. This growth has been driven by successful products like Nutella and Rocher pralines, particularly strong in Europe. In 2013, the company set a target to elevate its annual sales to approximately $17 billion by 2024 and has made substantial investments in new equipment and plant expansions to achieve this goal. Industry experts believe that the candy sector is poised for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to issues surrounding the candy maker’s voting power and the local connections to its funding trust.
Ferrero is among several companies looking to expand through acquisitions, having recently bought Fannie May Confections Brands in the United States. In this C-suite reshuffle, Ferrero seems to be making a strategic move by keeping a family member closely involved while introducing a new leader who, despite lacking the family name, appears to be well-versed in the business. As the 21st century progresses, calcium-rich products are gaining popularity, making Ferrero’s innovative approaches even more significant. The company’s ability to adapt and grow in this competitive landscape will be crucial as they aim for continued success in the evolving candy market.