Lindt to ride cocoa cost surge without widespread price increases

Lindt can bear cocoa cost surge; commits to price stability

Lindt & Sprüngli has no plans to introduce sweeping wholesale price increases in response to rising cocoa costs, according to its CEO.

Lindt chief Ernst Tanner told Reuters that the firm could weather rising cocoa costs due to its premium positioning.

"From Lindt, we have invested (in) the past 15 years enormous amounts in building the brand, establishing us as the No. 1 premium chocolate around the world, and such a strong brand can also bear some price adjustments upwards."

Cocoa butter, sugar and nuts

Nina Keller, corporate communications at Lindt confirmed Tanner’s comments.

“The commodity prices - especially for our most important ingredients cocoa beans and cocoa butter - have risen steadily in the course of this year,” she said.

“One of the reasons for this high is the growing demand for chocolate products in general as well as in emerging markets such as Eastern Europe, India and China in particular.”

“Furthermore, there are increasing prices for other commodities such as sugar, nuts and energy.”

She said that Lindt compensated for fluctuating raw material costs through process optimization and moderate price adjustments on selected products.

Nestlé, Hershey and Mars

This week, Hershey announced plans to up its global wholesale prices by 8% in response to rising commodity costs for cocoa, dairy and nuts. Nestlé also said it would increase its confectionery prices in response to mounting commodity costs.

Mars recently told this site that it would not raise prices based on commodity costs as pricing decisions were made independently of ingredients outlays.

Cocoa prices reached a monthly average of $3,173 per metric ton (MT) in June, 39% higher than the same period last year.

Related News

Mars Chocolate North America ups wholesale prices 7%....1% lower than Hershey's price hike

Mars Chocolate North America follows Nestlé and Hershey with price hike

Don't hamper emerging market growth with chocolate price increases, says Euromonitor

Be wary of wholesale chocolate price hikes, warns Euromonitor

Lindt chose its own cocoa prgram over certifcation as mass balance was 'not an option'.  Photo: Lindt

Going its ‘own way’: Lindt invests $14m in sustainable cocoa in last eight years

Has Lindt missed the emerging market boat with Russell Stover or is it full steam ahead in US?

Lindt buys Russell Stover: But life’s no longer like a box of chocolates in the US

German appeal court rules in Lindt's favor

Lindt Teddy has its picnic but Haribo trademark row will rumble on

Lindt plans fully-traceable cocoa by 2020. 75% is currently traceable, mostly from Ghana.

A peek at Lindt’s sustainable cocoa commitments

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.