Basilea, Switzerland – April 11: Lindt Chocolate Easter bunny are seen in a store on April 11, 2025 in Basel, Switzerland.
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Cocoa prices will remain elevated despite some potential decreases in the midst of higher contributions and sustainability costs, he told CNBC of the Confectionery Company Lindt & Sprüngli, Adalbert Lienerer.
“Cocoa prices will decrease,” Lechter told Carolin Roth of CNBC on April 11, adding that, however, he does not believe that cocoa prices “are reduced to the levels at which they have been before.”
Factors that include higher supplies costs, sustainability programs and fair trade initiatives mean that “the price of cocoa should be higher than it used to be in the past,” he said.
Lechner’s comments follow an increase in cocoa prices to register maximums in 2024, driven by bad weather, diseases and pest sprouts in Western Africa that could supply a supply deficit. With the increase in cocoa planting and high prices that destroy demand, chocolate manufacturers face a double -edged sword.
We see chocolate markets in decline as in the United States last year, [leading to] More than 5% [of] Decrease in volume, ” he said.
However, not only the recovery of the supply is the failed demand, Oran Van Dort, a basic products analyst in Rabobank, told “CNBC Europe” Squawk Box “.
“The highest retail prices, the draccadores who use different methods to make chocolate that use less cocoa, increase in weight loss drugs,” they are causing “demand destruction,” he said.
Lindt & Sprüngli has shown resilience despite record volatility in cocoa markets that affect the chocolate industry. The company reported operational profits of the whole year for the whole year best expected in 2024, with 5.1% of sales by 5.1% in Swiss francs during the period.
Lechner attributed this performance to “Fuertes Premium brands with high convenience for consumers.”
Throughout the industry, chocolate prices have been increasing, Rabobank of Dort said: “Many great chocolate confites have mentioned that prices increased and have passed them to consumers.”
He added: “They could have more to do it in the future.”
While Lindt & Sprüngli is “very cautious” about the transfer of high cocoa costs to consumers, Lechner acknowledged that “the magnitude of these increases in the raw material forced us, also, in recent years, to transmit a certain amount to consumers.”
Even so, he said that his company “has never competed for the price” and that consumers who pay “ten cents or 20 cents do not make a difference. Buy this product that wishes to show the appreciation.”
Duty
Speaking before the pause of the president of the United States, Donald Trump, in tariffs for countries, such as Switzerland, the CEO said he does not expect a significant impact of the Rates of the OP Lindt business.
“We use almost 4,000 people in the US. We have five factories there,” he said. “Then, the impact of all thesis and trade war rates is limited to us.”
The United States has previously pointed out litery to foreign companies that establish local production facilities, providing incentives to encourage operations in the United States, instead of abroad.
However, he added that, despite localized production “because cocoa, unfortunately, does not grow in the US.
“[The] The increase in migration costs of cocoa grains and production captivated by tariffs will mean ‘consumption and grounding [of cocoa] He will suffer if reciprocal tariffs remain in place, “Van Dort to CNBC told CNBC.” Tariffs will lead to higher prices. “
Reflecting on the global macroconomic environment, the Lindt CEO recognized a softening in the feeling of the consumer, together with the labor insecurity and an uncertain inflationary environment.
“Consumers are insecure at this time,” he said, and pointed out that customer confidence in China also has a “relatively weak” leg.
However, his perspective for the future remained optimistic.
“I think the postponement for 90 days is a very optimistic sign,” Lehner told CNBC. “It is very positive. Obviously, the United States government is open to negotiations, and I would say that I am optimistic that we will see less impact as we expected a week ago.”