ZURICH: Lindt & Sprungli has struggled because it misjudged how consumers would respond to price increases, the chair of the Swiss chocolate maker says, days after the company ousted its chief executive officer over concerns about its performance.
In an interview with the NZZ am Sonntag, executive chairman Ernst Tanner said the firm, whose shares have tumbled more than 25% this year after recent outlook cuts, was largely suffering because it had misread the market in Germany.
“We misjudged how customers would respond to price increases. After cocoa prices reached historic highs from 2024 onwards, we wanted to pass on those additional costs.
“In doing so, we overestimated how much we could raise prices without hurting demand,” he said. “For some consumers, our products clearly became too expensive in recent months.” — Reuters
