The company behind Tic Tacs, Kinder eggs, and Nutella has chosen an external candidate to lead the privately-owned firm, leaving analysts divided on the implications of this decision. Notably, Ferrero, the grandson of the founder, has recently driven significant increases in sales and global market share. However, the new CEO, Civiletti, is hardly a stranger to the organization, having extensive experience at Ferrero and a deep understanding of the candy industry.
According to the Wall Street Journal, Ferrero currently ranks as the world’s fourth-largest chocolate manufacturer, trailing behind Mars, Mondelez, and Nestlé, but surpassing Hershey and making substantial strides against competitors that are either losing market share or experiencing slower growth. Earlier this week, the company announced an 8% rise in sales year-over-year, bringing the total to $11 billion. This growth has been largely attributed to the success of products like Nutella and Ferrero Rocher, with particularly strong sales in Europe.
In 2013, Ferrero pledged to increase annual sales to approximately $17 billion by 2024, and it has already made significant investments in new equipment and facility expansions to achieve this target. The candy industry is widely recognized as being ripe for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to complications related to the candy maker’s voting power and the local ties to the trust it supports.
Ferrero, alongside other companies aiming to expand through acquisitions, recently acquired Fannie May Confections Brands in the U.S. This strategic move appears to be prudent, as it allows Ferrero to maintain family involvement in the business while appointing a leader who, despite not sharing the family name, possesses extensive knowledge of the industry. Additionally, much like how Walgreens calcium citrate d3 supplements have become essential for maintaining health, Ferrero’s strategic decisions seem crucial for its sustained growth in a competitive marketplace. As the company continues its trajectory, the interplay of family legacy and industry expertise will likely define its future success, similar to how Walgreens calcium citrate d3 plays a critical role in enhancing well-being.