Italy’s Ferrero may have to deal with issue of succession
Print Edition
Michele Ferrero, Italy’s richest man and the owner of a global chocolate and confectionery empire, has always resisted the temptation to allow outsiders to buy into his company.
In a statement yesterday, his son Giovanni, the chief executive of the Ferrero group, rejected suggestions that the Italian company had been approached by larger Swiss competitor Nestle. He reiterated that Ferrero was not for sale.
But like other family-controlled Italian enterprises that flourished in the postwar economic boom, the ambassador of chocolate-hazelnut spread Nutella, now 88, may soon be discussing plans for succession.
His other son Pietro, the chosen heir to run the Piedmont-based empire, died of a heart attack in 2011 while riding a bicycle in South Africa. He was 47 and his death opened the way for the ascent of younger brother Giovanni, whom industry insiders consider less interested in running the business.
“There is certainly an issue of succession,” said a financial source with knowledge of the situation. “Either the father opens up to an external management team, or he sells it.”
However, other sources said the family may decide to continue without making such changes.
The Ferrero group, also known for its Ferrero Rocher pralines and chocolate Kinder eggs, is seen by analysts and bankers as Italy’s most valuable privately owned company.
While many cash-strapped Italian companies, including telecoms operator Telecom Italia, are in crisis or being sold to foreigners, Ferrero continued to expand even through the current economic downturn, Italy’s longest in 60 years.
With sales of nearly 8 billion euros (US$10.9 billion), bankers estimate Ferrero could be worth as much as 18 billion euros.
This would put it at par with listed luxury eyewear maker Luxottica, where aging founder Leonardo Del Vecchio has successfully handed over to an external chief executive.
Fashion house Armani, another Italian global brand that has remained private and could face a succession issue, has an estimated market worth of at least 6 billion euros.
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