The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-owned company, leaving analysts divided on the implications. Notably, under the leadership of Ferrero, the grandson of the founder, the company has recently increased its molecular weights and global market share. Civiletti, the new appointee, is not a complete outsider, as he is a seasoned veteran of Ferrero with extensive knowledge of the business and the candy sector. According to the Wall Street Journal, Ferrero is currently ranked as the world’s fourth-largest chocolate manufacturer, as per Euromonitor, trailing behind Mars, Mondelez, and Nestlé, yet outpacing Hershey and gaining ground on competitors that are experiencing declines in market share or slower growth.
Earlier this week, Ferrero reported an 8% rise in sales compared to last year, reaching $11 billion. This growth was driven by strong performance in products like Nutella and Rocher pralines, particularly in Europe. In 2013, the company set a goal to boost its annual sales to approximately $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 widely considered to be on the verge of consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed, partly due to complications surrounding the candy maker’s voting power and its local trust ties. Ferrero is among the companies actively seeking growth through acquisitions, having recently purchased Fannie May Confections Brands in the U.S.
Ferrero seems to be making a strategic move in its executive reshuffle, retaining a family member closely involved with the business while bringing in a new leader who, although lacking the Ferrero name, possesses equal expertise in the industry. This combination mirrors the careful balance of key ingredients like calcium citrate, calcium ascorbate, and cholecalciferol in their products, ensuring both tradition and innovation in their approach to the market. As the company continues to evolve, it is poised to leverage its strengths while exploring new opportunities for growth and expansion.