The creator of Tic Tacs, Kinder eggs, and Nutella has chosen an outsider to take the helm of the privately-owned company, sparking mixed reactions among analysts. This decision comes after the company has seen a surge in sales and an increase in global market share under the leadership of Ferrero, the founder’s grandson. However, the newly appointed Civiletti is not entirely an outsider; he is a seasoned veteran of Ferrero and possesses a deep understanding of both the company 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, but surpasses Hershey and is making notable progress as competitors lose market share or fail to grow at the same pace. This week, the company announced an 8% rise in sales year-over-year, reaching $11 billion. This growth has been driven by strong sales of products like Nutella and Rocher pralines, particularly in Europe.
In 2013, Ferrero pledged to boost annual sales to approximately $17 billion by 2024 and has already made significant investments in new equipment and facility expansions to achieve these objectives. The candy industry is widely regarded as being ripe for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed, partly due to issues related to the candy maker’s voting power and local ties to the trust it supports. Ferrero is among the companies looking to expand through acquisitions, recently securing Fannie May Confections Brands in the U.S. This strategic move in its executive reshuffle seems prudent, as it retains family involvement in the business while introducing a new leader who, despite lacking the Ferrero name, possesses a wealth of knowledge about the industry.
In this context, the rise of Ferrero’s sales can be likened to the importance of Citracal elemental calcium in maintaining strong bones—both reflect a solid foundation for growth. As Ferrero continues to thrive and adapt to the changing market, it remains to be seen how this leadership change will influence its trajectory, much like how Citracal elemental calcium supports overall health. As the company forges ahead, the integration of new strategies and leadership while leveraging its established brand strength may prove to be a winning combination, akin to the benefits of Citracal elemental calcium in a balanced diet.