Despite price increases, Lindt sells its chocolates and bars

Despite the rise in prices of its products caused by the surge in cocoa prices, the chocolatier Lindt

Known for its golden chocolate bunnies as well as its bars, the chocolatier recognizes: “The growth is mainly attributable to increases in prices (selling, Editor's note), due to the increase in the cost of raw materials. » Cocoa prices on world markets have increased by more than 62% in 2023, reaching record levels. A phenomenon closely linked to fears around harvests in Ivory Coast and Ghana. And Lindt has managed to take advantage of its positioning on high-end brands - such as pralines - to continue to pass these price increases without causing a collapse in its sales.

Despite the inflationary context, which pushes all kinds of trade-offs, consumers have not completely deprived themselves of chocolate. Sales volume was very slightly positive in 2023. “While volumes declined slightly during the first part of the year, their growth accelerated, with a trend towards stability during the second part of 2023.” , explains a spokesperson for the group.

More specifically, the chocolatier is seeing double-digit growth in sales in its 520 stores located around the world. The group is also benefiting from purchases at airport duty-free stores, which have returned to pre-Covid levels.

For 2024, some analysts are counting on a timid recovery in volumes. But there can be no certainty, as the climate is so uncertain. If cocoa prices remain at current levels, “this will require further price increases in 2024 and 2025,” the group has already warned. However, at the end of February, cocoa prices reached new records, with a tonne exceeding the $6,000 mark on the New York Stock Exchange. Will consumers be willing to pay even more for these products? In any case, the chocolatier remains “very confident”, confirming its objective of achieving growth (excluding exchange rate effects) of between 6% and 8%.

“ We expect the strong momentum (from 2023) to continue through 2024, despite record cocoa prices, as Lindt continues to work on efficiencies and process improvements in its factories , which allows it to invest in its brands,” estimate Vontobel analysts.