The renowned German chocolate manufacturer, Ritter Sport, is bracing for sustained price increases and warning of a burgeoning “chocolate crisis” according to its CEO, Andreas Ronken. In an interview, Ronken bluntly stated that consumers should not anticipate lower chocolate prices, attributing the situation to the devastating impacts of climate change on key ingredients, particularly cocoa.
“We have broken the world” Ronken declared, highlighting the increasingly erratic weather patterns plaguing cocoa-producing regions. The failure of regular rainy seasons is escalating risks for farmers and significantly impacting supply. The price of cocoa has more than doubled in recent months, currently hovering near $5,500 per metric ton – a level, Ronken acknowledged positively, that allows farmers to earn a more sustainable livelihood.
However, this price surge is already triggering a noticeable decline in sales, with Ritter Sport experiencing a drop of up to ten percent. The company faces a difficult balancing act, unable to fully pass on the escalating raw material costs to consumers. “We are experiencing a chocolate crisis: less margin than before and simultaneously less quantity that we can sell – due to the price” Ronken explained, a stark admission of the pressures facing the industry.
The retail sector’s psychological price threshold is estimated to be between €2 and €3 per chocolate bar. Faced with unavoidable cost increases, Ritter Sport is prioritizing maintaining the classic 100-gram format, opting to increase prices rather than reduce the size of its popular bars. “I find the route via price significantly fairer” Ronken stated, signaling a commitment to transparency with consumers.
While the company navigates these challenges with established products, Ritter Sport is exploring new avenues for growth. Ronken announced the introduction of a new chocolate figurine for the upcoming holiday season – a departure from their current offerings of advent calendars and tree ornaments. “The seasonal business is not simple, the competition is strong” he admitted. Initial indications suggest a potential Santa Claus figurine is being considered, a move aimed at capturing a greater share of the lucrative holiday market. The situation underscores a wider concern: that the combined pressures of climate change and global market volatility are fundamentally reshaping the confectionery industry and forcing difficult choices for both producers and consumers.