Lindt chairman admits chocolate pricing mistakes after CEO ouster

what happened

Ernst Tanner, executive chairman of Swiss chocolate maker Lindt & Sprüngli, said in an interview with NZZ am Sonntag, as reported by Reuters, that the company had misjudged its pricing. The comments came days after Lindt removed its CEO over concerns about performance. The shares have dropped more than 25% this year after recent outlook cuts.

Tanner said management overestimated how much prices could rise without hurting demand. After cocoa prices hit record highs from 2024, the company wanted to pass on higher costs, but some consumers found its products too expensive. He stressed that Lindt as a whole is not in crisis and expects growth of 6% to 8% this year in the Americas and the Far East.

Tanner added that some prices have already been cut, there will be no group-wide job cuts, and bonuses in the Germany-Switzerland-Austria region will be reduced because targets were missed.

why it matters

For investors, the case shows how difficult it can be to pass higher raw material costs on to customers. Future pricing moves will depend on cocoa prices, which Tanner said should return to more normal levels before Lindt has more room to cut prices.

market impact

Lindt and confectionery sector: weak demand in Germany and pressure on the company's outlook

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