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Chocolate Bunnies: Increased demand for cocoa in Asia

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Andreas Rentz/Getty Images

Many people give chocolate as gifts at Easter - and they may soon have to dig deeper into their pockets to do so.

According to a forecast by the Swiss manufacturer Lindt & Sprüngli, the popular sweet is likely to become more expensive.

The company blames the increase in the price of the most important ingredient in chocolate, cocoa.

The price rose by 62 percent last year and by more than 40 percent this year, said the company in Kilchberg near Zurich.

“Despite the hedging strategy and higher inventories, the price increase will result in further price increases in 2024 and 2025, provided cocoa prices remain at the current level,” says Lindt & Sprüngli.

The Federal Association of the German Confectionery Industry (BDSI) had previously been concerned about rising cocoa levels and EU regulations.

Chocolate balls are particularly popular at Lindt

“If there is a decline in supply, the supplying countries have the choice as to which regions of the world they would like to deliver their cocoa to,” said BDSI Managing Director Carsten Bernoth.

"For deliveries to the EU, the requirements of the EU Deforestation Regulation or the EU Supply Chain Act (CSDDD) will in future require significantly more bureaucratic effort than, for example, deliveries to the USA or the booming countries of Asia."

Lindor chocolate balls were particularly in demand at Lindt & Sprüngli last year, as the company reported when it presented its business figures.

Business grew double-digit everywhere, including with an oat milk variant.

According to the report, the chocolate manufacturer made 813 million francs (846 million euros) in operating profit (EBIT) last year - 9.2 percent more than in the previous year.

The bottom line was that Lindt & Sprüngli had a net profit of 671 million francs – 17.9 percent more than in the previous year.

This includes the effects of a tax reduction.

In terms of sales, the company broke the five billion mark for the first time in 2023, as it reported in January: 5.2 billion francs.

Without currency effects and purchases, this corresponded to an increase of 10.3 percent, but in Swiss francs it was only an increase of 4.6 percent.

The company employs around 14,500 people worldwide and operates 523 stores.

It wants to grow organically by six to eight percent this year.

apr/dpa