‘Läckerli Huus is not for sale’  

Miriam Baumann on the terrace of the Läckerli Huus headquarters in Frenkendorf. She is the owner, chairwoman and CEO of the company since 2007. Vera Leysinger / SWI swissinfo.ch

Miriam Baumann is the owner, chairwoman and CEO of Läckerli Huus, which manufactures the famous Läckerli biscuit. In an exclusive interview with Swissinfo she says her company is struggling to keep up with new regulations.

In 2007 Miriam Baumann acquired Läckerli Huus, which produces the Läckerli, a traditional crunchy spiced biscuit. Since then Baumann has been the sole owner, chairwoman and CEO of the company, which has some 150 employees.

She has instigated major transformations at Läckerli Huus, significantly broadening its product range, while continuing to serve international markets, particularly Germany and Japan.

Swissinfo met her at the company’s headquarters in Frenkendorf, an industrial municipality in canton Basel Country.

Swissinfo: You took over Läckerli Huus in 2007. What are the three most important changes you have made in the company since then?

Miriam Baumann: First, we simplified the legal structure. Läckerli Huus was part of a group of five companies, and we merged them into a single company.

Second, in 2007 our two production sites were inefficient. For example, their windows were not properly insulated, the floor load capacity was insufficient, and the ceilings were not high enough. One site was also very close to a city, which was no longer appropriate for our industry. Fortunately, I was able to purchase land in canton Basel Country. That’s where we now have our headquarters as well as a single modern production facility.

Third, we adapted our logo, product range and packaging.

The famous Läckerli biscuits during production. Stefan Bohrer / Keystone

Swissinfo: Your product range has grown considerably, with around 150 products. Do you now have an optimal product range?

MB: It is always a difficult balancing act. The broader the product range, the more complex and cost-intensive it becomes across the entire value chain. But since we sell our products directly to end consumers and our products are often bought as gifts, we cannot afford to sell only kilos of Läckerli in dull shops.

On the contrary, we need to attract a steady flow of customers to our shops, which is why we need a broad product range and regular novelties. That’s why we expanded our offer to chocolate a few years ago.

We also specialise in beautifully decorated tin cans, and it is an advantage to have a broad range of products presented in these cans. Our home market is growing, but not the traditional way. Population growth is driven by immigrants rather than by the Swiss having children. They have different tastes, so we have to adapt, which means expanding our product range. Finally, I would emphasise that our strength lies in managing such a complex portfolio of products, including refined packaging.

Swissinfo: You use several distribution channels for your products: your own stores, an online shop and large external retail chains such as Coop or Migros. What is your underlying strategy?

M.B.: Traditionally, we sold directly to end consumers, which is why we have ten stores, 30 shops-in-shop (primarily in furniture shops or garden centres), and some pop-up stores. These direct sales account for the main share of our revenues. However, to ensure broader market coverage, we now also sell our products through large external retail chains, ensuring that they do not significantly reduce our recommended retail price, so as to maintain uniform pricing across all channels.

A key advantage of selling directly in our stores is that we can train our salesforce and have complete control over merchandising. We also receive valuable feedback from our customers. From external retail chains, we can of course purchase sales data, though these are expensive. Finally, we also sell via our online shop with worldwide delivery.

Swissinfo: How important is the international market for you?

M.B.: About 10% of our sales are outside Switzerland. Our two main foreign markets are Germany and Japan, where we have retail partners. In Germany, many of our customers are Swiss citizens. Therefore, our market positioning in Germany is the same as in Switzerland, which we define as “premium with a friendly touch”.

In Japan, our products are sold primarily as gifts and are 2.5 times more expensive than the Swiss price. This allows us to cover transport, import duties totalling 25%, value-added taxes, handling fees, and Japan-specific requirements including custom-made elaborated packaging.

“Switzerland compares well internationally. My main concern is the increasing number of regulations in Switzerland and elsewhere, especially in the food sector.” Vera Leysinger / SWI swissinfo.ch

SWI: You often emphasise the strength of your brand through your artistically decorated packaging. In this approach, you have few competitors. How come?

M.B.: Packaging is important because many of our products are sold as gifts. We specialise in elaborate tin cans, and this requires time, effort, special skills and a lot of manual work. From development to completion, it can sometimes take many prototypes.

Swissinfo: Your products and sales are extremely seasonal. How do you cope with the fluctuations in demand?

M.B.: We book 40% of our sales from October to December. We employ 150 people, but during the Christmas season we hire an additional 60 employees. To mitigate this Christmas peak, we have launched an array of initiatives.

Selling through large external retail chains flattens demand somewhat, since their sales are often for personal consumption rather than gifts. We have also launched summer products such as lemon Läckerli and Läckerli bunnies for Easter. In Japan, peaks occur not at Christmas but on Valentine’s Day and White Day [a Japan-specific tradition during which men give gifts to women who gave them gifts on Valentine’s Day]. Finally, we also manufacture semi-finished products that we sell throughout the year, primarily to the ice-cream industry.

Swissinfo: You meet the “Swissness rules’” requirements which allow you to use the national flag on your packaging. How come you don’t always use it?

M.B.: Indeed, we prefer to use the crozier, a typical symbol of Basel, since our products are traditionally linked to the city. In terms of colour harmony, a Swiss red cross would not fit into our traditional black, white and gold colours. However, for Japan, we add a “Swiss-made” sticker to our packaging.

Swissinfo: Innovation is key to staying ahead of competition, which includes among others biscuit maker Kambly and chocolatier Läderach. How do you make sure you remain innovative?

M.B.: We have an innovation team whose composition is regularly modified. People often think that innovation is an impulsive process, but in reality innovation is hard work carried out through a structured process.

In that sense, we monitor our markets, including innovations in other countries and in other product categories such as ice cream, beverages and yoghurts. We read studies about new trends and listen to customers, who typically suggest gradual improvements rather than fundamental changes. We also work with universities of applied sciences that run workshops. I also express my opinions, but my voice is not pre-eminent. Finally, innovations must be supported by a strong business case and the promise of profitable sales.

“About 10% of our sales are outside Switzerland. Our two main foreign markets are Germany and Japan, where we have retail partners.” Vera Leysinger / SWI swissinfo.ch

Swissinfo: Many countries are increasingly concerned about excessive sugar consumption. How are you addressing this issue? [100g of Läckerli biscuits contains 45g of sugar. The daily recommended quantity of free sugars (processed sugars, syrups, honey, etc.) is 25g].

M.B.: We do not consider that sugar content in our products is a problem, because our products are usually consumed in moderation. In addition, our products contain no hidden sugar, and our Läckerli are sweetened mainly with honey. Nevertheless, last year we launched a Läckerli that contains no added granulated sugar and complements our fully sugar-free products, which contain sweeteners and are mainly consumed by diabetics. However, if consumers’ tastes evolve towards products with much less sugar, we will of course adapt our core products.

Finally, I hope that the regulatory authorities will exercise common sense: I really do not want to be forced to add large warning labels to our beautiful packaging, as is the case with cigarette packets. It would be a contradiction in our society if eating chocolate were discouraged while at the same time certain drugs are being legalised.

Swissinfo: Switzerland has 35 free trade agreements, including those with the European Union and Japan. What impact do they have on your business?

M.B.: The agreement with the EU is important because it allows us to export to Germany without import duties. Regarding Japan, our products are excluded from the free trade agreement, so we have to pay 25% import duties regardless.

Swissinfo: What is your opinion about the business conditions in Switzerland?

M.B.: Switzerland compares well internationally. My main concern is the increasing number of regulations in Switzerland and elsewhere, especially in the food sector. They include declarations including those required for customs, and other regulations to avoid food waste and foster recyclability, packaging guidelines, and so on. These Swiss regulations are certainly inspired by the legislation in neighbouring countries. For an SME like Läckerli Huus, this is very burdensome because we do not have a large team to cope with the bureaucracy.

I also see a few clouds on the horizon regarding labour laws, due to our unreasonable trend towards international harmonisation. As an SME, we take our social responsibility seriously and our interests align closely with those of all our employees.

Part of this year’s Christmas collection. It also includes various decorated tin cans, which Läckerli Huus specialises in. Vera Leysinger / SWI swissinfo.ch

Swissinfo: Do you receive many acquisition offers, for instance from large international groups?

M.B.: We do, normally through intermediaries. However, Läckerli Huus is not for sale, at least not for the foreseeable future. Nevertheless, we do not exclude some form of collaboration with other companies – for instance, to facilitate a foreign group’s entry into the Swiss market or to join forces in dealing with increasingly complex regulations. We might also acquire companies ourselves.

Swissinfo: Do you ever feel lonely at the top, given your multiple roles as chairwoman, CEO and sole owner?

M.B.: It is always lonely at the top. However, I think that for a small company like ours, our current constellation is appropriate. I could, for instance, hire an external CEO, but I believe I can do this job myself, and what’s more, I enjoy doing it. I could also hire an external chairperson, but as the sole owner, that would be a bit artificial.

Anyway, I do not feel that I am an autocrat. Besides, my board of directors has two external members who, fortunately, do not hesitate to contradict me, which leads to lively and enriching discussions. Naturally, I fully bear my responsibilities in relation to all stakeholders: customers, employees, media and others.

Edited by Virginie Mangin/ts