The Federal Association of the German Confectionery Industry (BDSI) has continued to lobby the government in efforts to make politicians recognise the “top priority of strengthening the domestic economy”, the association said in a recent press release.
The German confectionery industry continues to face major challenges. The last year and first quarter of 2023 were characterised by economic and political uncertainties for more than 200 manufacturers of confectionery and snack items. Raw material and energy costs, which have risen since the war in Ukraine, have had a particularly big impact.
A total of 28% of companies working in this industry reported falling sales in the first quarter of 2023. 76% of companies state high inflation and reduced purchasing power in Germany as being the main reasons for a decline in sales of confectionery, while 39% cite challenges in supply chains and resulting reduced production possibilities.
These come as major findings of the BDSI survey, where it reviewed its members on economic development in the first quarter of 2023.
Biggest cost drivers from the companies surveyed are increased costs for raw materials (95%), rising energy costs (84%), personnel costs (79%) and logistics costs (56%). 34% of companies see the international competitiveness of their company at risk against the current challenges.
Political challenges are also a factor, as different labelling regulations within the EU (88%), rising gas and electricity prices (86%), the requirements of the supply chain law (83%), the plastics discussion, in particular packaging changeover/packaging tax (83%) and the discussion about a switch to other energy sources (82%).
“The Federal Government must give top priority to consistently strengthening the domestic economy, because only then can jobs, investments and added value in Germany be secured in the long term,” said Bastian Fassin, Chairman of the BDSI. “Especially the small and medium-sized companies in the German confectionery industry are no longer able to cope with new regulatory requirements, especially in times of these enormous economic challenges.”
Bastian Fassin was recently re-elected Chairman of the Federal Association of the German Confectionery Industry (BDSI), which took place at the general meeting of the association on 11 May in Freiburg im Breisgau, Germany.
Bastian Fassin has been confirmed to serve as the Chairman for an additional two years, having held the position since May 2019. In addition to this role, he has been Managing Patrtner of Katjes Fassin together with Tobias Bachmüller since 2004 and the Main Partner of Katjes International. He has been a member of the BDSI Executive Committee since 2008, and has been Chairman of the working group International Sweets Fair (AISM) since 2012.
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