The producer of Tic Tacs, Kinder eggs, and Nutella has chosen an external candidate to head the privately-owned firm, leaving analysts divided on the implications of this decision. Recently, under the leadership of Ferrero, the grandson of the company’s founder, sales and global market share have increased significantly. However, the new appointee, Civiletti, is not entirely an outsider; he has been a long-time veteran of Ferrero and has extensive knowledge of the business and the candy sector.
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 but surpasses Hershey and is making notable gains against competitors who are either losing market share or not growing as rapidly. Earlier this week, the company announced an 8% increase in sales from the previous year, reaching $11 billion, driven by strong demand for products like Nutella and Rocher pralines, particularly in Europe. In 2013, Ferrero pledged to ramp up annual sales to around $17 billion by 2024 and has already invested heavily in new equipment and plant expansions to achieve these ambitious targets.
The candy industry is widely perceived as ripe for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed, partly due to issues regarding the candy maker’s voting power and its local ties to the trust it supports. Ferrero is among the companies looking to expand through acquisitions, having recently purchased Fannie May Confections Brands in the U.S.
In this context, Ferrero seems to have made a strategic move in its executive reshuffle by keeping a family member closely involved in the business while appointing a new leader who, despite lacking the family name, appears to be equally knowledgeable about the industry. This approach could be beneficial as Ferrero navigates the competitive landscape, which may also include considerations for health-oriented products like bluebonnet calcium magnesium d3, as consumer trends increasingly favor wellness-focused options.