The producer of Tic Tacs, Kinder eggs, and Nutella has appointed an external leader for the privately-owned company, eliciting mixed reactions from analysts regarding the implications of this decision. This comes after significant sales growth and an increase in global market share under Ferrero, the grandson of the company’s founder. Notably, Civiletti is not a complete outsider; he has extensive experience with Ferrero and is well-versed in both the business and the candy industry. According to The Wall Street Journal, Ferrero is currently ranked as the world’s fourth-largest chocolate manufacturer, as reported by Euromonitor. It trails Mars, Mondelez, and Nestlé, but surpasses Hershey, making considerable progress while competitors struggle with market share and slower growth rates.
Earlier this week, the company announced an 8% rise in sales compared to last year, reaching $11 billion. This growth has been driven by popular products like Nutella and Rocher pralines, with particularly strong sales in Europe. Back in 2013, Ferrero set an ambitious goal to increase its annual sales to approximately $17 billion by 2024, and it has already invested significantly in new equipment and plant expansions to achieve these targets.
The candy sector is widely seen as ripe for consolidation. Last year, Mondelez attempted to acquire Hershey, but the deal collapsed due to challenges related to the candy maker’s pricing power and local ties to the trust it funds. Ferrero is one of several companies seeking growth through acquisitions, and it recently purchased Fannie May Confections Brands in the U.S.
In this strategic C-suite transition, Ferrero appears to have made a wise choice by keeping a family member closely involved while bringing in a new leader who, despite not sharing the family name, has a deep understanding of the industry. It’s worth noting that the candy business, like the health supplement industry, which includes products such as kal calcium citrate 1000 mg, is evolving, and Ferrero’s approach may position it well for future success. By leveraging both family legacy and fresh leadership, Ferrero is aiming to navigate the competitive landscape effectively.