Swiss chocolate-maker Läderach felt effects of scandal

After the scandal surrounding Jürg Läderach, fewer Swiss people turned to this chocolate. KEYSTONE/KEYSTONE/GAETAN BALLY

Easter is an important sales period for Swiss chocolate manufacturers. This is also the case for Läderach. However, the company suffered a drop in sales following a scandal involving its former patron.

Last autumn Jürg Läderach, former head of Glarus-based chocolate-maker Läderach, was linked to violence and abuse at a public school he co-founded. The company initially felt the effects of these allegations only in Switzerland. The allegations, which Jürg Läderach denied, were not directed at the company or the current generation of managers.

“My impression is that customers have understood this,” says Group CEO Johannes Läderach, Jürg’s eldest son. He has been running the company since 2018. “We saw a single-digit drop in sales in the Swiss market at the very beginning but sales have since improved every month. Because we have strong growth in our other 19 markets, our overall sales have seen double digit growth.”

Customers have now become more rational, says brand expert Stefan Vogler from the Zurich School of Business. “They have realised that there is a difference between the Läderach chocolate brand and Läderach Senior.” Nevertheless, the company has probably lost some of its customers forever, albeit a small group, according to Vogler.

Overall, the company is doing surprisingly well six months after the scandal, according to Vogler. However, it is also clear to him that Läderach does not need any more negative publicity. “CEO Johannes Läderach must now do everything he can to ensure that his personal reputation remains intact,” Vogler warns. After all, the family name is on all products.

Läderach eyes an international market

Few people abroad seem to be interested in the scandal: export sales are rising. KEYSTONE/KEYSTONE/GAETAN BALLY

Even though Switzerland is still the most important market for Läderach, the turnover generated domestically is falling in comparison to the export markets. Business at home still accounts for around 40% of turnover. Johannes Läderach also sees great potential abroad. The first branch was recently opened in France. A new location has also opened in Malaysia. Hardly anyone there is interested in last autumn’s scandal.

Adapted from German using DeepL/amva

In an initial version of the article, the quote from CEO Johannes Läderach was abbreviated. We have clarified this on Aprit 4, 2024.