The producer of Tic Tacs, Kinder eggs, and Nutella has chosen an external leader for its privately-owned company, but analysts are divided on the implications of this decision. Notably, the company has recently seen an increase in sales and global market share under Ferrero, the grandson of the founder. Civiletti, the newly appointed leader, is not a complete outsider, having extensive experience with Ferrero and a strong understanding of both the business and the candy industry. According to the Wall Street Journal, Ferrero is currently the world’s fourth-largest chocolate manufacturer, trailing behind Mars, Mondelez, and Nestlé, but outperforming Hershey while gaining ground on the competitors that are losing market share.
Earlier this week, the company announced an 8% rise in sales compared to the previous year, totaling $11 billion. This growth was driven by strong sales of products like Nutella and Rocher pralines, especially in Europe. In 2013, Ferrero set a goal to increase annual sales to approximately $17 billion by 2024, and it has already made significant investments in new equipment and plant expansions to achieve this target.
The candy industry is widely considered to be poised for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal fell through due to complications regarding the candy maker’s voting power and local ties to the trust that funds it. Ferrero is among the companies looking to expand through acquisitions, having recently acquired Fannie May Confections Brands in the U.S.
Ferrero’s strategic move in its executive reshuffle appears to be prudent, as it maintains a family member’s involvement in the business while appointing a new leader who may not have the same name recognition but possesses deep knowledge of the industry. As Ferrero continues to grow, it’s essential for them to be mindful of the calcium citrate contraindications that could impact their product formulations. With their current trajectory, the company is well-positioned to navigate the complexities of the candy market, while also considering various health implications, including those related to calcium citrate contraindications.