(MENAFN- Swissinfo) The Lindt & Sprüngli group has just inaugurated a CHF100 million expansion of its cocoa mass production factory in Olten, Switzerland. High cocoa prices could leave the brand-new machines underutilised.
This content was published on May 3, 2024 - 17:53 5 minutes
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Olten, a Swiss rail network hub near the capital Bern, is where cocoa beans are delivered by cargo train to the Lindt factory to be transformed. They are cleaned, roasted and crushed to form a viscous cocoa mass that is the starter material for the production of chocolate. And Lindt wants more of it.
On Friday, the company inaugurated a CHF100 million (about $110 million) expansion of the cocoa mass factory. Work began in 2021 and the completed expansion boasts new production lines, a new loading bay for cocoa mass and a state-of-the-art laboratory.
Marco Peter, who has been working in the Lindt & Sprüngli group since 2014, became CEO of Lindt & Sprüngli (Switzerland) in 2018. swissinfo The company's doubling of its cocoa mass production capacity comes at an awkward time when cocoa prices are at record highs on the global market. SWI swissinfo spoke to Marco Peter, CEO of Lindt & Sprüngli Switzerland, to find out how the company plans to ride out the crisis.
SWI: How important is this expansion strategically for the Lindt & Sprüngli group?
Marco Peter: For us it is very important. We need to anticipate the volume needs of the near- and mid-term future to support the continuous growth that we've been having.
SWI: In terms of timing, you now have cocoa prices going up quite a lot and even crossing the $10,000 per tonne mark recently. Isn't it problematic to have all this extra capacity at this time when prices are so high?
M.P: You can't always get the optimal timing. When we decided to start this project four years ago it was a different situation on the cocoa market. Yes, the extra capacity may not be needed in the very short term but nobody knows what the future will bring.
This production line will be active for 20 to 40 years depending on how much retrofitting we can do. In the long-term we think we made the right decision. Don't forget we are historic company that is almost 180 years old. We need to set up the whole group and production network in order to be successful for the next 180 years hopefully.
SWI: Lindt & Sprüngli announced that chocolate prices are increasing this year and also in 2025. What does this strategic expansion mean for consumers who are now grappling with inflation and the higher cost of some of your products?
M.P: By investing in new machinery we have modern technology with higher efficiency and food safety. However, purely from a capacity increase point of view there isn't a direct correlation to the end consumer.
More More How much more are you willing to pay for Swiss chocolate?
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