A popular chocolate manufacturer announced bankruptcy. Is this the end of Christmas Santa Clauses?
Confectionery producers found themselves in . The prices of their basic products are reaching record levels and significantly affect production processes. Cocoa and sugar prices have almost doubled compared to last year. Adding the cost of electricity to this, chocolate production often became unprofitable. According to Radio Zet, even Wedel increased the prices of its products. Currently, you have to pay up to 20% for Wedel products. more than a year ago. Not all producers have coped with the difficult market situation. Some of them were forced to take radical actions. Austrian manufacturer of chocolate Santa Clauses and Easter bunnies brand Franz Hauswirth. The company is struggling with huge debts and financial problems. The restructuring process may be the last resort for Franz Hauswirth. It is intended to save jobs and help continue the brand’s long-standing tradition. The company still sells online, but as it warns, deliveries may be significantly delayed.
Franz Hauswirth is a company with traditions. It was founded in the 1940s. The brand sells in 30 countries and is best known for its chocolate Santa Clauses and bunnies. Unfortunately, even long-standing traditions did not save the brand. Currently, it is almost EUR 7 million in debt. Will rising costs and the post-pandemic market mean that chocolate products will reach record prices this Christmas? – Like many other manufacturers, Wedel gradually increases prices. This year, the average raise in the industry was 20%. and unfortunately we do not rule out further increases next year. To fully reflect the increase in the prices of this raw material, we would have to increase the prices of products threefold, but then no one would buy them – Aleksandra Kusz vel Sobczuk, head of corporate communication and ESG at LOTTE Wedel, told the WP Finanse editorial office.
