Lindt acknowledges price rises went beyond customers’ tolerance
Lindt chairman Ernst Tanner acknowledged that the chocolate maker raised prices further than customers would tolerate, particularly in Germany. Some prices have already been reduced to support sales volumes after a surge in cocoa costs. Tanner ruled out group-wide job cuts, but missed targets will affect bonuses in Germany, Switzerland and Austria as the company seeks to restore growth.
Economics & Markets··Morning
Higher chocolate prices weakened demand
Ernst Tanner, chairman of chocolate maker Lindt & Sprüngli, acknowledged that the company misjudged customers’ response to price increases. Germany was a particular problem. He ruled out group-wide job cuts and said he intended to remain in charge while working to put the business back on course.[1], [2]
Cocoa prices reached historic highs from 2024 onwards. Lindt tried to pass those additional costs to shoppers, but management overestimated how far it could raise prices without harming demand. Tanner said products had become too expensive for some consumers in recent months.[1]
Some prices have already been reduced
The company has cut some prices to support sales volumes. Tanner said more normal cocoa prices would provide additional room for reductions. He rejected the view that the whole group was in crisis and maintained its growth target of 6–8 per cent for operations in the Americas and Far East this year.[1]
Missed targets will affect regional bonuses
Targets missed in Germany, Switzerland and Austria will affect bonuses in that region, Tanner said. His comments followed the chief executive’s removal over performance concerns. Lindt shares have lost more than 25 per cent this year after outlook reductions. Tanner, 80, has chaired the group for more than three decades and previously served as chief executive from 1993 to 2016.[1]
