CHOCOSUISSE-Bulletin 2021 (Business year 2020)

2020 saw more than ten percent less produced in than in the previous year. Sales across the industry fell by 14.5%. The amount of imported chocolate increased over the same period. There was one factory closure in 2020 as well as a 4.8% decrease in the number of people employed in the industry.

Total sales 11.5% to 126,000 tonnes. The corresponding sales reve- year-on-year, while imports of foreign chocolate increased The volume of chocolate produced in Switzerland in 2020 nue fell by 13.9%. However, with a share of 70%, exports by 5.4%. This trend is being driven by an asymmetry in fell by around 20,000 tonnes to around 180,000 tonnes. remain the most important sales channel for the Swiss the border protection of raw materials and processed Sales in the industry fell by CHF 260 million to CHF 1.53 chocolate industry. products: as a result of the border protection, certain raw billion. The decline was apparent in both the domestic and materials are twice as expensive in Switzerland as the export business. Per capita consumption was lower Employment abroad. The effect of compensatory mechanisms is mut- than at any time in the past forty years. A chocolate factory was closed in 2017 when production ed. The producers’ demand for the imposition of a was transferred to ; another chocolate factory minimum price as border protection for sugar threatens to Domestic market closed for good in 2020. Sixteen factories remain in busi- increase the price of raw materials even further. This In the domestic market, only the semi-finished business ness in Switzerland today. Across the industry as a whole, would further weaken the competitiveness of Switzerland was better in 2020 than in the previous year; this includes the number of employees fell by 4.8% in 2020. as a production location. CHOCOSUISSE is therefore e.g. chocolate mass sold to confectioners. All other prod- calling on politicians to reject this protectionist measure. uct categories exhibited sharp declines. The volume of Cost trend sold in the domestic market fell by 6.9% The prices of the most important raw materials remained and the corresponding sales by 15.1%. Swiss per capita at the previous year’s level in 2020. The raw material The statistical data in this Bulletin covers the entire Swiss consumption fell below 10 kg (to 9.9 kg) for the first time price for almonds fell by around 3 %, whereas it rose by 9 chocolate industry. since 1982. This decline was at the expense of chocolate % for hazelnuts. The prices for cocoa beans and cocoa produced in Switzerland, as the import volume of foreign butter remained at the previous year's level. In contrast, chocolate increased in 2020 (+ 1.8%). This equates to a the price of imported sugar rose by 2 %. rise in import share from 41% to 43%.

Export Outlook The export business witnessed a decline across all prod- The start of 2021 was marked by continuing challenges. uct categories in 2020. The export volume decreased by January 2021 saw export volumes decrease by 15.3% Sales of Swiss chocolate products Chocolate imports Employment in the Swiss chocolate industry (domestic and export) Source: Swiss Federal Customs Administration Source: Employment statistics (Swiss Federal Statistical Office) Source: Chocolate manufacturers 2018 2019 2020 Women Men Total 2018 2019 2020 t t t % 1980 2’277 2’806 5’083 t t t % 15’274 14’954 15’945 43 1990 2’648 2’588 5’236 Bars and small formats 107’855 112’044 101’726 57 France 5’815 5’076 5’362 14 2000 2’074 2’183 4’257 Chocolate confectionary 38’558 40’063 31’123 17 4’737 5’055 4’857 13 2010 1’916 2’325 4’241 Seasonal items 9’153 9’435 9’187 5 Italy 2’598 2’902 2’845 8 2015 2’178 2’301 4’479 Coatings/couvertures 36’612 37’972 37’175 21 Poland 1’940 2’197 2’604 7 2019 2’178 2’429 4’607 Powder 750 760 763 0 Belgium 2’087 2’071 2’127 6 2020 2’097 2’298 4’395 Total 100 from 94 other countries 3’699 3’703 3’678 9 Of these products, 30 % were sold in Switzerland and 70 % exported to 148 coun- Total 36’150 35’958 37’418 100 tries. These Swiss exports should not be confused with the far greater production of Average import prices of the most important raw materials (duty unpaid) chocolate with Swiss labels by branches, subsidiaries and licensees operating Source: Swiss Federal Customs Office abroad. 2018 2019 2020 Turnover by the Swiss chocolate industry with Swiss chocolate products CHF CHF CHF Source: Chocolate manufacturers 100 kg cocoa beans 277 269 269 The most important export markets 2018 2019 2020 100 kg cocoa butter 571 571 568 Source: Swiss Federal Customs Administration in Mio. CHF in Mio. CHF in Mio. CHF 100 kg sugar 55 49 50 2018 2019 2020 Domestic sales 766 857 727 100 kg hazelnuts 607 617 676 t t t % Exports 984 930 802 100 kg almonds 710 741 717 EU / EFTA 80’380 80’752 72’219 62 Total 1’750 1’787 1’529 100 kg whole milk powder * 380 453 462 Germany 32’834 34’113 24’368 21 * Corresponds to the import price of the 300 tonnes import quota of milk powder which is France 11’180 11’464 13’126 11 sold annually by auction since 1 January 2009. The price for domestic whole milk powder United Kingdom 14’033 12’189 11’697 10 Developments in the average retail price in 2020 was on average CHF 621.-- for 100 kg. Canada 11’272 12’288 11’224 10 Source: National retail price index (Swiss Federal Statistical Office; Basis December USA 7’698 8’493 7’168 6 1982, extrapolation) Italy 5’805 5’884 5’480 5 1983 2019 2020 Worldwide grinding of cocoa beans 2019/2020 Australia 5’495 4’901 5’187 5 Chocolate 100.2 125.5 124.7 Source: International Cocoa Organization (Bulletin No. 4, November 2020) China 2’514 3’035 3’106 3 Overall index 100.9 159.9 158.7 tons % Belgium 3’705 3’457 2’817 2 Europe 1’671’400 35.8 2’375 2’289 2’353 2 Per capita consumption -Netherlands 600’000 12.9 Spain 2’827 3’206 2’133 2 -Germany 430’000 9.2 1’531 1’708 1’997 2 Sources: Chocolate manufacturers, Caobisco -France 140’000 3.0 136 other countries 29’325 29’976 25’204 21 -Belgium 90’000 1.9 Total * 130’594 133’003 115’860 100 The Swiss like chocolate. With a domestic consumption of around 86’000 tonnes of chocolate products and an average population of 8,7 million people, the average per -Italy 81’500 1.7 capita consumption adds up to 9,9 kg, thereby ranking Switzerland at the head of -Spain 78’000 1.7 -United Kingdom 70’000 1.5 Relationship between domestic sales and exports of Swiss chocolate consumer countries. For comparison purposes, the figures from other countries: -Switzerland 48’000 1.0 products kg kg Asia and Oceania 1’116’200 23.9 Source: Chocolate manufacturers Switzerland 2020 9.9 Romania 2018 4.0 Africa 1’000’800 21.4 2018 2019 2020 Austria 2018 9.0 Portugal 2018 3.7 Germany 2018 8.8 France 2018 3.5 North America 450’000 9.6 t t t % Central and South America 430’400 9.2 Domestic sales 52’364 58’310 54’295 30 United Kingdom 2018 7.9 Spain 2018 3.4

Total 4’668’900 100.0 Exports * 140’564 141’964 125’679 70 Finland 2018 7.4 Italy 2018 3.2 An interesting conclusion can be made from this table: The small amount of raw material Total 192’928 200’274 179’974 100 Belgium 2018 6.7 Greece 2018 3.2 2018 6.6 Hungary 2018 3.0 imports by Swtzerland is in reverse proportion to the high reputation of its chocolate. Could there be any better proof of its quality? * The foreign trade statistics compiled by the Swiss Federal Customs Admin- Croatia 2018 6.6 Poland 2018 2.0 istration are based on criteria different to the statistics behind those for the sector prepared by the Swiss manufacturers. The two sets of statistics therefore show different export figures.

Structure of the world cocoa trade The three most important cocoa-producing countries, the Ivory Coast, Ghana and Ec- CHOCOSUISSE Members uador, are responsible for around 69 % of the global harvest. The Swiss chocolate in- dustry imported 77 % of its requirements from Ghana (53 %) and Ecuador Chocolat ALPROSE SA Tel. +41 (0)91 611 88 88 (24 %). It was responsible for processing around 2.4 % of the worldwide consumption Via Rompada 36, Casella postale 165, 6987 Caslano Fax +41 (0)91 606 51 85 of cocoa beans. In quantitative terms, Switzerland is therefore a minor player. All the BARRY CALLEBAUT SCHWEIZ AG Tel. +41 (0)43 204 04 04 more remarkable, therefore, is the excellent reputation enjoyed throughout the world by Westpark, Pfingstweidstrasse 60, 8005 Zürich Fax +41 (0)43 204 04 09 the Swiss chocolate industry. This reputation rests on product quality, innovative Chocolat BERNRAIN AG Tel. +41 (0)71 677 93 77 Bündtstrasse 12, Postfach, 8280 Kreuzlingen Fax +41 (0)71 677 93 50 strength and the Swiss chocolate tradition that is lovingly nurtured by the Chocolats Camille BLOCH SA Tel. +41 (0)32 945 12 00 firms day by day. 2608 Courtelary Fax +41 (0)32 945 12 01 Chocolats et Cacaos FAVARGER SA Tel. +41 (0)22 775 11 00 The cocoa market is one of the world’s most unstable raw material markets. This is why Ch. de la Chocolaterie 2, Case postale 148, 1290 Versoix Fax +41 (0)22 775 11 01 UNCTAD, the United Nations Conference for Trade and Development, has been trying Max FELCHLIN AG Tel. +41 (0)41 819 65 65 over the years to coordinate supply and demand, and thereby bring some stability to Gotthardstrasse 11, 6438 Ibach Fax +41 (0)41 819 65 70 Chocolat FREY AG Tel. +41 (0)62 836 26 26 the market in general and prices in particular. The new International Cocoa Agreement, Bresteneggstrasse, Postfach, 5033 Buchs Fax +41 (0)62 836 25 01 which was agreed in June 2010 for this very purpose, entered into force on 1 October HALBA Tel. +41 (0)61 825 91 00 2012. Division der Coop, Salinenstrasse 70, 4133 Pratteln Fax - LÄDERACH (SCHWEIZ) AG Tel. +41 (0)55 645 44 11 Bleiche 14, 8755 Ennenda Fax +41 (0)55 645 44 45 Chocoladefabriken LINDT & SPRÜNGLI (SCHWEIZ) AG Tel. +41 (0)44 716 22 33 Cocoa harvest 2019/2020 Source: International Cocoa Organization Seestrasse 204, 8802 Kilchberg Fax +41 (0)44 715 39 85 (Bulletin No. 4, November 2020) MAESTRANI Schweizer Schokoladen AG Tel. +41 (0)71 228 38 11 tons % Toggenburgerstrasse 41, Postfach, 9230 Flawil Fax +41 (0)71 228 38 00 Ivory Coast 2’104’800 44.5 MARS SCHWEIZ AG Tel. +41 (0)41 769 14 14 Ghana 800’000 16.9 Baarermattstrasse 6, 6340 Baar Fax +41 (0)41 769 15 15 Ecuador 328’200 6.9 MONDELEZ SCHWEIZ GMBH Tel. +41 (0)58 440 40 40 Cameroon 280’000 5.9 Lindbergh-Allee 1, 8152 Glattpark Fax +41 (0)58 440 40 01 Nigeria 250’000 5.3 201’300 4.3 NESTLÉ SUISSE SA Tel. +41 (0)21 924 51 11 Indonesia 200’000 4.2 Case postale 352, 1800 Vevey Fax +41 (0)21 924 55 79 Peru 152’500 3.2 Confiserie SPRÜNGLI AG Tel. +41 (0)44 224 46 46 Others 413’000 8.8 Bahnhofstrasse 21, 8001 Zürich Fax +41 (0)44 224 47 35 World harvest 4’726’100 100.0 STORCK (Schweiz) GmbH Tel. +41 (0)44 276 45 45 In comparison: tons Josefstrasse 84, Postfach, 8031 Zürich Fax +41 (0)44 276 45 46 World harvest 2016/17 4’768’300 tons Chocolat STELLA SA Tel. +41 (0)91 857 01 41 World harvest 2017/18 4’645’600 tons World harvest 2018/19 4’784’200 tons Via alle Gerre 28, 6512 Giubiasco Fax +41 (0)91 857 38 86 VILLARS Maître Chocolatier SA Tel. +41 (0)26 426 65 00 Rte de la Fonderie 18, Case postale 1568, 1701 Fribourg Fax +41 (0)26 426 65 56

CHOCOSUISSE, Association of Swiss Chocolate Manufacturers cooperative, Münzgraben 6, CH-3011 Bern Telefon 031 310 09 90, Fax 031 310 09 99, [email protected], www.chocosuisse.ch