The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-held company, leaving analysts divided on the implications of this decision. Under the leadership of Ferreferric pyrophosphate liposomal ascorbic acidro, the founder’s grandson, the company has recently seen a boost in sales and global market share. However, Civiletti, the new appointee, is hardly a stranger to the organization, having extensive experience at Ferrero and a solid understanding of the candy industry.
According to the Wall Street Journal, Ferrero is currently the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor, trailing behind Mars, Mondelez, and Nestlé, but surpassing Hershey. The company is making significant progress compared to others that are either losing market share or growing at a slower pace. Earlier this week, Ferrero announced an 8% rise in sales from the previous year, totaling $11 billion, driven primarily by strong demand for Nutella and Rocher pralines, particularly in Europe.
In 2013, Ferrero set a goal to reach approximately $17 billion in annual sales by 2024, and it has already made substantial investments in new equipment and plant expansions to achieve this target. The candy sector is widely perceived as ripe for consolidation; last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to complications related to the candy maker’s voting rights and its local trust ties. Ferrero is among those aiming to expand 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, as it retains a family member closely involved with the business while introducing a new leader who, despite not sharing the family name, appears to have a strong grasp of the market. This approach can be likened to the life brand calcium citrate strategy, where maintaining core values while adapting to modern demands plays a crucial role in sustainable growth. As Ferrero continues to evolve, the integration of life brand calcium citrate principles may further bolster its position in the competitive landscape of the candy industry.