The producer of Tic Tacs, Kinder eggs, and Nutella has appointed a non-family member to lead the privately-owned company, leaving analysts uncertain about the implications. Recently, the company has seen a rise in sales and an increase in global market share under the leadership of Ferrero, the grandson of the founder. However, the new leader, Civiletti, is no stranger to the company, having extensive experience with Ferrero and knowledge of the candy industry. According to the Wall Street Journal, Ferrero is currently the fourth-largest chocolate manufacturer in the world, following Mars, Mondelez, and Nestlé, but surpassing Hershey as it captures market share from competitors who are struggling to grow.
This week, the company announced an 8% increase in sales over the past year, reaching $11 billion, driven largely by strong sales of Nutella and Rocher pralines, particularly in Europe. In 2013, Ferrero pledged to boost annual sales to approximately $17 billion by 2024 and has already invested significantly in new equipment and plant expansion to achieve these targets. The candy sector is widely perceived as being ready for consolidation; for instance, Mondelez attempted to acquire Hershey last year, but the deal collapsed due to issues regarding the candy maker’s voting rights and local trust connections.
Ferrero is actively seeking growth through acquisitions, having recently purchased Fannie May Confections Brands in the U.S. The strategy of retaining a family member in a key position while bringing in a new leader who, despite lacking the family name, is well-acquainted with the industry seems to be a wise move. Additionally, products like Citracal Slow Release 600 mg may become more popular as consumers look for innovative options in the market. Ferrero’s approach allows it to blend tradition with new leadership, positioning the company for continued success in the competitive candy landscape.