Lindt & Sprüngli chairman admits price hikes hurt demand

Lindt & Sprüngli Executive Chairman Ernst Tanner has admitted the company misjudged consumer response to price increases, particularly in the German market. Following historic highs in cocoa prices starting in 2024, the Swiss chocolatemaker attempted to pass additional costs on to customers, but overestimated how much prices could rise without damaging demand.

The company has faced significant challenges, including the recent dismissal of CEO Adalbert Lechner and a share price decline of more than 25% this year following multiple downward revisions to profit forecasts. Tanner noted that for some consumers, Lindt products became “clearly too expensive” in recent months.

To stimulate sales volumes, the company has already begun lowering some prices. While Tanner acknowledged that bonuses in the Germany-Switzerland-Austria region would be affected due to missed targets, he stated that the company is not in crisis and does not plan group-wide job cuts. He also projected growth targets of 6% to 8% in the Americas and the Far East for the current year.