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CHOCOLATE COMPANY Are Supposedly Making Things Tougher for Retailers Than Ever Before

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CHOCOLATE COMPANY Are Supposedly Making Things Tougher for Retailers Than Ever Before LINDT & SPRÜNGLI I PROFILE Across the globe, the business pages of newspapers and magazines are full of tales of retail woe. Changes in con - sumer spending habits and other issues CHOCOLATE COMPANY are supposedly making things tougher for retailers than ever before. However, the retail sector is at the core of the con - MAINTAINING MOUTH-WATERING tinued growth of a historic chocolate manufacturer. Lindt & Sprüngli now has 460 shops across the world. James Wills looks at the company and the factors behind its continued success. 1 Inside Food & Drink Inside Food & Drink 2 LINDT & SPRÜNGLI I PROFILE 1845, in a cramped bakery In 2018 Lindt & Sprüngli recorded solid in Zurich’s old town, David sales growth, gained substantial market IN Sprüngli-Schwarz and his son, share and once again grew faster than the Rudolf Sprüngli-Ammann, decided to be overall chocolate market. The company saw the first people in the German speaking a rise in sales of 5.5%, with operating “But local subsidiaries work closely with The Italians, on the other hand, are enthusi - capita consumption of chocolate – for part of Switzerland to manufacture choco - profits up 6.9% to more than £500 million. their marketing experts to adapt the choco - astic about Gianduia. They love the small, example Brazil, Japan, South Africa and late in a solid form. All this was achieved despite an overall late products to the particular needs of the bite sized Gianduiotto – nougat pralines. China,” said Mrs Agosti. “In developing It is fair to say the experiment was a suc - flat market in Europe, attributed to mod - market and country-specific taste prefer - “Our Excellence bars, in various varieties, these markets, the company’s own shops cess. Over the next 50 years, the company erate GDP growth and political uncertainty, ences. All in all, we offer more than 2,500 are particularly preferred in France, because and cafés play a central role. continued to expand until, at the turn of the and challenges in the North America sector. prod ucts worldwide. the French are enthusiastic about an intense “These markets have experienced a sharp 20th century, the opportunity arose to buy According to the company, one of the “The English and Americans, for example, chocolate taste, while milk chocolate is still growth over the last few years and demon - the small but famous chocolate factory keys to such growth is ensuring while the love dark chocolate with a mint taste. And very popular among the Swiss.” strate that this strategy pays off and there is of Rodolphe Lindt in Berne. high quality of its chocolate is always main - while Americans prefer peanuts, almonds a lot of potential for them.” Lindt was the most famous chocolate- tained, it is never afraid to adapt to local and pecans, Europeans prefer hazelnuts and Opening new markets For Lindt, retail growth is bucking the maker of the era. Previously, chocolate market demands. tree nuts. In Asia, for example, Matcha is Since the turn of the millennium, Lindt has trend for most specialist retailers. In 2018 was chewy, but Lindt had mastered cre - The company’s Head of Communications, very popular. been continuously breaking new ground and the company opened 50 new shops at the ating a product which bears the delicate Nathalie Agosti, said: “The original recipe “To cater to those preferences, we conquering future markets that are not seen same time many other brands were closing flavour, aroma and melting characteristics behind our Swiss chocolate – which is still launched Lindor Mint last year in England as traditional chocolate markets. their outlets. we still enjoy today. And thankfully for a closely guarded secret – is the key to the and Lindor Matcha in Asia. Both flavours are “The majority of these are characterised Its stores attract over 80 million visitors Lindt & Sprüngli, we are enjoying it in company’s global success and forms the already very successful in these countries . by the fact that they still have a low per every year and the company is seeking ever increasing quantities. basis for all our product development. 3 Inside Food & Drink Inside Food & Drink 4 LINDT & SPRÜNGLI I PROFILE further expansion in prime locations and in Olten, Switzerland reopened after a £24 “Particularly important in the overall at top touristic destinations, for example million upgrade. project was the installation of a state-of- in the O2 Mall in UK, at the Empire State “We are one of the few chocolate makers the-art pilot plant, in which tests are now Building in in the USA or at Switzerland’s who produce ‘from bean to bar’ – meaning being carried out on beans, recipes and Top of Europe building in Jungfraujoch – we select the finest cocoa beans and then process steps,” she added. “Thanks to home to Europe’s highest train station produce the end product from them,” said increased capacities in cocoa mass produc - in the Swiss Alps. Mrs Agosti. “The cocoa beans are transported tion, this expansion builds the foundation Mrs Agosti said: “Key to this success in an environmentally friendly manner from for the future growth of the Lindt & is providing a unique shopping experi ence their origins – mainly West Africa and Sprüngli Group.” to the visitors, to present a comprehen sive South America by ship to the Netherlands With such growth comes responsibilities. product assortment in a privileged and then delivered to Olten by rail. As such, Lindt & Sprüngli goes to extraordi - ambiance, and to be able to offer detailed “Here they are processed into cocoa nary lengths to ensure a sustainable and advice in order to obtain a strong emo tional mass, which is then delivered to our pro - socially responsible supply chain . loyalty towards our brands.” duction sites in Switzerland, Italy, Germany The Lindt & Sprüngli Farming Program, and France.” which was set up in 2008 in Ghana, aims to New facilities In addition to a further facility for improve the livelihood of the cocoa farmers To support such continued growth the roasting cocoa beans, the expansion and their communities. Training and knowl - company is also expanding its core infras - and new construction also includes edge transfer has already helped to boost in income diversification and empowered tructure. In June, The Lindt Cocoa Centre a new loading hall. crop yields; the company also gave support farmers to manage their farms in accordance with sound agricultural, social, ecological and economic practices. It was such a success the program is now running in other countries the com - pany sources its cocoa beans, including Ecuador, Madagascar, Papua New Guinea and the Dominican Republic. In total, more than 72,500 farmers are part of the initiative and 86% of the company’s cocoa bean supply chain is not just traceable, but also externally verified. And what does the company think the chocolate future holds? According to Mrs Agosti: “We are observing a shift towards premium prod - ucts. When consumers are indulging themselves with chocolate, they want the best and we provide it. And we are also an ongoing trend towards dark chocolate. With our Excellence range, we are well positioned to meet this demand.” n 5 Inside Food & Drink Inside Food & Drink 6.
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