Barry Callebaut feels the restraint of consumers in America
Published: Wednesday, Jan 24th 2024, 09:11
Updated At: Thursday, Jan 25th 2024, 00:59
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Barry Callebaut (BC) is at the bottom of the North American market. Because people there are tightening their belts, they are less likely to buy more expensive products such as chocolate in the stores. The world's largest chocolate company is feeling the effects.
The Zurich-based company sold significantly less chocolate in the region, which includes Canada and Mexico as well as the USA, in the first quarter of its current financial year, i.e. from September to November 2023. The sales volume in BC's second-largest sales market fell by 4 percent to just over 140,000 tons, as the company announced on Wednesday.
According to reports, local food manufacturers have suffered from weaker consumer demand. The strong new business did not help either. The recovery in the Gourmet & Specialties segment, particularly in Mexico, was also unable to compensate for the decline in sales in the region.
However, sales fell even more sharply than sales volumes. At 516.3 million Swiss francs, BC's revenue in North America was 5.2 percent lower than in the same quarter of the previous year. This shows that cheaper products were sold. Nevertheless, the company would have achieved a plus of 1.5 percent in local currency.
Western Europe significantly stronger
The situation is quite different in the largest region, Western Europe. In view of BC's figures, the consumer mood there still seems to be intact: Sales volumes increased by 4.7% to 194,000 tons, albeit on a low comparative basis - in the previous year, the salmonella incident in Wieze, Belgium, had put a damper on sales volumes.
What is striking, however, is the increase in sales: revenue rose by a full 15.5%, and in local currency by as much as 17.4%. Barry Callebaut has therefore significantly increased its prices and sold more expensive products.
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