Lindt to cut out U.S. as supplier to avoid tariffs
Canada may receive the company's treats only from Europe to sidestep new taxes.
Courtesy of Lindt
Lindt & Sprungli, purveyor of Swiss chocolate, may cut out the U.S. as a chocolate supplier to Canada to avoid tariffs, says Fox Business and Reuters.
Canada normally receives 50% of its Lindt chocolate from the U.S. and the rest from Europe, but may soon receive the treats only from Europe, as a way for the company to avoid the trade war.
Canadian Prime Minister Justin Trudeau recently announced 25% tariffs on American goods in response to President Trump authorizing 25% tariffs on imports from Canada and Mexico.
"We are monitoring the situation very closely and have identified different ways to mitigate the effect of tariffs," a Lindt & Sprungli spokesperson said to Fox News Digital. "These include the possibility of supplying countries like Canada and Mexico from our European production facilities."
95% of Lindt-produced chocolates sold in the U.S. are made at its five factories in the country, which also supply Canada. The factories could be impacted by the U.S. tariffs. The shift in Canada’s supply chain may begin by the middle of this year, and Canadian stores have already stockpiled Lindt products from the U.S. to provide a grace period for the change, Reuters reported.
Lindt CEO Adalbert Lechner says the company was taking action to prevent its business in Canada, one of its top ten markets, from being caught in the conflict.
"The volumes that we source currently for Canada can all be shifted to Europe," Lechner said after Lindt reported its full-year results.
Despite rising cocoa prices—reportedly tripling over the past two years—and Lindt raising its prices by 6.3% last year, annual sales still grew by 7.8% last year, "suggesting that shoppers are not easily deterred from splurging on their chocolates," says Fox Business.
Lindt & Sprungli placed #8 on Candy Industry's Global Top 100 list this year, bringing in $6.01 billion in 2024, compared to $5.96 billion in 2023.
Lindt & Sprungli AG is on the current Candy Industry “Global Top 100 Candy Companies” list. Click here to view the current “Global Top 100” rankings.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
