Lindt to Cut Prices as Chocolate Demand Wanes in Key Markets
(Bloomberg) — Lindt plans to lower prices for its chocolate products after it pared back its sales-growth guidance for a second time this year citing subdued consumer sentiment.
The Swiss company is cutting prices for its Christmas offerings and plans to lower them across the board starting from January, Chief Executive Officer Adalbert Lechner said Tuesday on a media call. Lindt earlier revised its full-year 2026 outlook for organic sales growth to a range of 0%–2%, down from 4–6% previously, having already trimmed it in March.
The shares slumped as much as 8.7% in Zurich, the biggest intraday decline since the March guidance revision. They were down by more than a quarter this year through Monday’s close due to doubts about a recovery in volumes.
The confectionary maker has been grappling with tepid demand in Germany, Switzerland and Austria, as well as increased price sensitivity among customers. A heat wave also weighed on sales in Europe across the chocolate industry during the summer months.
“A second cut within six months dents Lindt’s reputation for reliable guidance, a key support for its premium valuation,” Vontobel analyst Jean-Philippe Bertschy wrote in a note. “Pricing power, long Lindt’s trump card, is now being tested.”
Record-high cocoa prices has been another factor holding back profitability at chocolatiers in recent years. They started to come down toward the second-half of 2025, but have been on the rise again since February on expectations that West Africa’s 2026-27 crop will be smaller because of disease and adverse weather.
The region could also be affected by a strong El Niño, a climate phenomenon which can bring periods of severe flooding or drought. Lindt and its rivals are usually hedged well into the future and may have to wait before reaping the benefits of any price normalization.
Swiss cocoa grinder Barry Callebaut AG has reported lower volumes due to higher market prices. While it flagged an improvement in orders in its third-quarter results, with customers willing to book further in advance again, it warned that recovery “would take some time.”
Lindt, or Chocoladefabriken Lindt & Spruengli AG, expects “positive volume growth” next year thanks to an easing cocoa market and increased brand investments, Lechner said.
“With our hedging strategy, we did not benefit in a big way from lower cocoa prices this year, but we will see a positive impact next year that allows us to do lower price points,” he told reporters.
Lower prices introduced in August in some of its key markets had already shown “that there is a direct link to volume development,” he added.
Lindt’s premium positioning has been flagged as a possible hurdle to volume recovery by analysts, as consumers who opted for cheaper alternatives could take longer to return.
“We have quite a few opportunities to continue to grow volume because we believe that the trend to premiumization as an overall trend will continue,” Lechner said.
(Updates with context on cocoa market starting in sixth paragraph.)
©2026 Bloomberg L.P.
