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Basel, Switzerland – April 11: Lind Easter bunnies see in the store on April 11, 2025 in Basel, Switzerland.
Sedat Suna | Getty Images | Gets the image
Cocoa prices will remain elevated, despite some potential decreases against higher contributions and resilience, CNBC CEO Lindt & Sprüngli Adalbert Lechner said.
“Cocoa prices will decrease,” said Lechner Kerolin Roth on April 11, adding that he still does not believe that cocoa prices are “if they are reduced to the level where they were before.”
Factors, including increased contribution costs, including sustainable development programs and just trade initiative, means that “the cocoa price should be higher than before,” he said.
Lechner’s remarks make rise in cocoa prices to record highs in 2024, caused by poor weather, diseases and outbreaks of pests in West Africa that caused a supply deficit. As the cocoa and high price plantation increases, chocolate manufacturers face a double -specific ball.
“We see a decrease in chocolate markets, as in the US last year (leading to) more than 5% (from) a decrease in volume,” he said.
However, it is not just a supply recovery that reduces demand, Oran Van Dort, Rabobank’s goods analyst, said CNBC “Squawk Box Europe”.
“Higher retail prices, confectioners who use different methods to make chocolate that uses less cocoa, raising medicines for weight loss,” causes “demand destruction,” he said.
Lindt & Sprüngli demonstrated stability, despite record volatility in cocoa markets that affect the chocolate industry. The company reported that in 2024 the company was most expected that for a full profit in Swiss francs increased by 5.1%.
Lechner attributed this performance “a strong premium brand with a high wish for consumers.”
In the area of the industry prices for chocolate candy are increasing, Van Dort Rababank, meanwhile, noted: “A lot of large chocolate confectioners really mentioned that they increase prices and pass them on to consumers.”
He added: “They may intend to do it more in the future.”
While Lindt & Sprüngli “very carefully” put the transfer of increased costs on cocoa consumers, Lechner acknowledged that “the magnitude of their increase for raw materials made us, as well as in recent years to transfer to consumers a certain amount.”
However, he said his company “never competed for the price” and that consumers who pay “ten cents or 20 cents more. You buy this product because you want to show gratitude.”
Tariffs
Speaking to the 90-day pause of US President Donald Trump on tariffs for countries, including Switzerland, the CEO said he did not expect a significant impact from the tariff on business Lindt.
“We work with almost 4,000 people in the US, we hold five factories there,” he said. “Thus, the influence of all these tariffs and trade war is relatively limited to us.”
Earlier, the United States signaled a decrease in foreign companies that create local production facilities, providing incentives to encourage operations in the United States rather than abroad.
However, he added that despite the localized production, “because cocoa, unfortunately, does not grow in the US, there is a 10% tariff plan, so it will further increase chocolate prices in the US”.
“(The) increases in the cost of migration of cocoa -dogs and production caused by tariffs will mean” consumption and grounding (cocoa) will suffer if mutual tariffs remain in place, “said Van Dort CNBC.
Reflecting on the global macroeconomic environment, Lindt CEO has recognized the softening in consumer moods, as well as uncertainty in work and an uncertain inflation environment.
“Consumers are currently dangerous,” he said, noting that customer confidence in China was also “relatively weak”.
However, his forecast for the future remained raised.
“I think the postponement for 90 days is a very optimistic sign,” said Lechner CNBC. “This is very positive. Obviously, the US government is open for negotiations, and I would say that I will see that we will see less impact as we expected a week ago.”
