Lindt has reversed its decision to raise product prices after customer demand plunged following an 11.8% price hike. The Swiss chocolate giant reported that sales dropped across Europe, particularly in the UK, Germany, and Switzerland. Weaker Easter demand and reduced tourism across Asia and the Middle East due to ongoing conflict also contributed to the decline.
Price adjustments for volume recovery
In response, Lindt said it has adjusted prices in certain locations for the second half of the year but has not confirmed which ones. Chief executive Adalbert Lechner said: "The actions we have initiated focus on volume recovery in the second half of 2026 and lay the foundation to regain volume growth momentum in 2027."
Regional sales performance
Sales in North America, Australia, China, and Japan have picked up, but these regions account for a smaller proportion of sales than Europe, where Lindt generates over half its revenue. European sales dropped by 2.1%.
Wider chocolate market challenges
The broader chocolate market faces issues due to climate change, with extreme rainfall and droughts reducing cocoa farmers' yields and raising production costs. Official data shows UK sweets and chocolate prices are rising at 5.7%, well above the overall inflation rate of 2.6%. Firms may resort to shrinkflation or price increases. Tony's Chocolonely, for example, increased prices by over 30% in 18 months due to rising cocoa costs, tariffs, currency movements, and product recalls.
