The manufacturer of Tic Tacs, Kinder Eggs, and Nutella has appointed an outsider to lead the family-owned company, leaving analysts divided on the implications of this decision. Notably, the company has seen increased sales and a rise in global market share under the leadership of Ferrero, the founder’s grandson. However, the new CEO, Civiletti, is far from a stranger to the business; 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 ranked as the world’s fourth-largest chocolate producer, as reported by Euromonitor, positioned behind Mars, Mondelez, and Nestlé, but ahead of Hershey, and making substantial progress against competitors who are either losing market share or struggling to grow.
Earlier this week, the company announced an impressive 8% increase in sales compared to the previous year, reaching $11 billion. This growth is largely driven by popular products like Nutella and Ferrero Rocher pralines, which have particularly strong sales in Europe. In 2013, Ferrero set a goal to boost its annual sales to approximately $17 billion by 2024 and has already made significant investments in new equipment and plant expansions to achieve this target. The candy sector is widely regarded as being poised for consolidation; last year, Mondelez attempted to acquire Hershey, but the deal fell through due to complications around the candy maker’s voting power and local trust ties. Ferrero is one of the companies looking to expand through acquisitions, having recently acquired Fannie May Confections Brands in the U.S.
Ferrero seems to be making a strategic move with its leadership change, retaining a family member closely involved in the business while bringing in a new leader who, despite not sharing the family name, appears to have an equal grasp of the industry. In a similar vein, some may wonder, “Do you take calcium citrate with food?” as it reflects the importance of understanding how products and their combinations can influence market success. As Ferrero continues its upward trajectory, the question of how to effectively manage both leadership and product strategy remains crucial.