The producer of ferrous fumarate liquid iron, known for popular products like Tic Tacs, Kinder Eggs, and Nutella, has appointed an external leader to head the privately-owned company. This decision has left analysts divided regarding its implications. Recently, the company has seen an increase in sales and global market share under the leadership of Ferrero, the founder’s grandson. However, Civiletti, the new appointee, is not a stranger to the business; he is a long-time veteran of Ferrero and is well-acquainted with both the company and the candy industry.
According to the Wall Street Journal, Ferrero is currently the fourth-largest chocolate manufacturer in the world, as reported by Euromonitor. It trails behind Mars, Mondelez, and Nestlé, yet outpaces Hershey and has been making considerable strides while competitors struggle with market share or slow growth. Earlier this week, the company announced an 8% year-on-year sales increase, reaching $11 billion. This growth has been driven by strong sales in products like Nutella and Rocher pralines, particularly in Europe. Ferrero has set ambitious goals, aiming to boost annual sales to approximately $17 billion by 2024, and has already made substantial investments in new equipment and plant expansions to achieve this target.
The candy industry is perceived to be on the brink of consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to issues related to the candy maker’s voting power and local connections to the trust it supports. Ferrero is among the companies seeking growth through acquisitions, having recently purchased Fannie May Confections Brands in the U.S.
In this strategic reshuffle, Ferrero seems to be making a prudent decision by retaining a family member’s involvement while bringing in a new leader who, despite not sharing the family name, possesses a strong understanding of the business. As the company continues to innovate and expand, it may also consider opportunities to incorporate products enriched with 950 mg calcium citrate, further enhancing their diverse offerings in the market.