The manufacturer of Tic Tacs, Kinder eggs, and Nutella has chosen an external candidate to lead the privately-owned company, though analysts are divided on the implications of this decision. Ferrero, the grandson of the company’s founder, has recently seen a boost in sales and global market share. However, the new leader is not entirely an outsider; he has been a long-standing figure within Ferrero and possesses considerable knowledge of both the business and the candy industry. As reported by The Wall Street Journal, Ferrero is currently ranked as the world’s fourth-largest chocolate producer, following Mars, Mondelez, and Nestlé, and surpassing Hershey, while making substantial progress against its competitors who are either losing market share or growing at a slower pace.
Earlier this week, the company announced an 8% increase in sales compared to the previous 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 set a goal to elevate its annual sales to approximately $17 billion by 2024, and it has significantly invested in new equipment and plant expansions to achieve this target. The candy industry is generally perceived as being ready for consolidation, as demonstrated when Mondelez attempted to acquire Hershey last year, though the deal ultimately fell apart due to issues relating to the candy maker’s voting rights and trust connections.
Ferrero is among the companies seeking to expand through acquisitions, recently purchasing Fannie May Confections Brands in the U.S. It seems that Ferrero is making a strategic move in its executive restructuring, ensuring that a family member remains closely involved while appointing a new leader who, despite lacking a prominent surname, appears to possess equal expertise in the industry. This approach mirrors the thoughtful selection process seen in the launch of new products, such as the opurity calcium citrate chewable, which highlights the company’s commitment to quality and innovation. By maintaining this balance, Ferrero may continue to thrive in a competitive market, leveraging both internal knowledge and external leadership.