Higher prices for “Lindor” trinkets and Easter bunnies – how Lindt benefits from inflation Anyone who doesn’t want to join the military will have a harder time going forward

Lindt & Sprüngli is a marketing machine. The Kilchberg ZH-based company invests significant amounts every year to present its products in the best possible light – a trump card that Lindt was able to fully play again last year with the end of the corona measures.

In the US, for example, Lindt is running a TV advertising campaign specifically tailored to local customers for the first time. This should convince Americans, who mainly consume milk chocolate, of the benefits of dark chocolate. This should increase sales in North America again. Last year it increased by 15 percent.

The Chinese also turned to Lindt products more often. In this market, Lindt realized a turnover increase of 18.3 percent. In the Middle Kingdom, CEO Adalbert Lechner relies on a Tiktok advertising campaign with well-known influencers.

In total, Lindt sold sweets worth 4.97 billion Swiss francs last year, the company announced to the media on Tuesday. From this, Lindt made a net profit of 570 million francs (+15.9%) and is again at the pre-crisis level. Europe remains Lindt’s most important market, but the US is catching up. Lindor balls and milk chocolate are especially popular in the US. There is also strong growth in demand in Brazil, Japan and China.

customers pay more

With the solid result, the Corona dent, which was noticeable in the annual result in 2020, has been finally overcome. Last year’s growth was primarily driven by inflation, which Lindt was able to pass on to customers. The figures show that customers accept “reasonable” price increases and remain loyal to the brand, Lindt writes.

A large part of the sales growth of 10.8 percent can be attributed to higher prices, a smaller part to additional products actually sold. In the second category, Lindt was mainly helped by the tourism revival. In addition, the behavioral patterns have returned to normal after Corona: customers not only give away more chocolate, they also buy more for their own consumption.

This also applies to Switzerland. Here Lindt sold 15 percent more chocolate last year and turned over a total of 407 million francs. Small packaging such as the Lindt Squares or trend products such as chocolate with less sugar or vegan alternatives are important in this country.

CFO Martin Hug emphasized that efficiencies could offset the sharp increase in raw material costs. Sometimes milk and sugar cost twice as much as in Ukraine before the war. The price of cocoa was less affected, although it has also risen recently.

The chocolate giant was directly affected by the sanctions against warlike Russia. Lindt owned eight stores there and employed 125 people. In March 2022, Lindt froze the company and in August the group announced it would completely liquidate the Russian company. A clear step: sales in Russia only contribute one percent to total sales.

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The annual report now shows how much the liquidation will cost Lindt. 3.1 million francs must be set aside, plus liquidation costs of 3.5 million francs. Lindt joined the Russian company about ten years ago.

Adalbert Lechner, who took over from Dieter Weisskopf as CEO in October, can handle the departure without any problems. The Austrian, who has been working in the group for 30 years and has built up the important German business, focuses on the markets of North America and Asia. He also made it clear to the media how important it is for the group to be able to continuously invest large amounts in advertising. Against this background, the withdrawal from Putin’s empire made sense: nothing hurts a well-oiled marketing machine more than internationally banned deals. (aargauerzeitung.ch)