Giovanni Ferrero, the 51-year-old third-generation CEO of Italian chocolate maker Ferrero International SA, has “increased the pace of change” at the company,
the
Wall Street Journal
reported.
In the past 18 months, Ferrero has brought new products to market in half the time; acquired Thorntons PLC, a British chocolate maker; and recruited managers from outside Italy — “all radical changes for a company that had stuck with a little-changed business model for most of its 70 years,” the
Journal
article said.
Ferrero has also reorganized the company according to regional divisions rather than product categories. He is seeking new acquisitions, the
Journal
reported. His goal is to double the company's revenue in the coming decade, with most of the growth coming from outside Europe, the article said.
Ferraro's father, Michele Ferraro, stepped down as CEO in 1997 but remained involved in product development and strategic decision making until he died last year at 89, the
Journal
article said.
Michele Ferrero was succeeded in 1997 by his two sons, Giovanni and Pietro, who served as co-CEOs. Pietro initially led the company, while Giovanni focused on his interests outside the business, the article said. Pietro died in an accident in 2011.
Observers at first worried about the company's fate under the leadership of Giovanni Ferrero, who is more introverted than his brother was, the
Journal
report said.
The company, wholly owned by the Ferrero family, generates €9.5 billion ($10.52 billion) in annual revenue, the article said. Its products include Ferrero Rocher pralines, Nutella, Tic Tac and Kinder eggs.
The industry is undergoing consolidation and declining sales, the report noted. (Source:
Wall Street Journal
, Aug. 9, 2016.)
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