Lindt & Sprüngli Group have reported of a successful business model in the financial year 2022 as increasing consumer footfall in shops and in travel retail, as well as improvements to the US supply chain are all attributed as major drivers of profitability. This led to total sales of CHF 4.97 billion.
The US segment generated a large portion of sales, as the company noted it grew faster than the market as a whole in the world’s largest chocolate market (being the US). The bestseller Lindor and recently launched milk chocolate line Gamme Bleue were particularly popular with consumers.
For Ghirardelli, the opening of the newly designed Chocolate Experience store at its location in San Francisco was a “resounding success.” All subsidiaries achieved double-digit growth rates in the past year, including Russell Stover, where stabilisation of supply chains allowed for sales to significantly improve.
For the rest of the world, countries Brazil, China and Japan deserved special mention, the company said, as they recorded double-digit growth rates. Recovery in air travel meant the Global Travel Retail business recorded a triple-digit growth. Brazil and Japan have the largest network of their shops where the company has continued to expand from a strategic perspective.
In Europe, the core markets identified remain Germany, France, the UK, Italy and Switzerland, which all record positive growth on a stong basis. Due to the war in Ukraine, the company made the decision to close business in Russia.
In terms of sustainability efforts, through the Lindt & Sprüngli Farming Program, cocoa beans are already procured on a traceable and externally verified basis. In addition, other cocoa countries of origin have been included in the program.
The company is working to reduce its greenhouse gas emissions and once the carbon footprint has been fully recorded, its science-based targets (SBTs) will be published in 2023. Using this as a basis, Lindt & Sprüngli will develop its roadmap for reducing greenhouse gas emissions and develop measures to reduce them.
In spite of this success, the company has said it is preparing for current economic conditions, best characterised by high inflation and votality, will continue in most markets.
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Caitlin Gittins
Editor, International Confectionery
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