Lindt Shifts Chocolate Supply to Europe for Canada Amid Tariff War
Alright, here’s something that might change the way Canadians get their favorite Lindt chocolates. Due to a growing trade conflict, Lindt & Sprüngli, the Swiss chocolate giant, is planning to bypass the U.S. and instead supply Canada directly from Europe. This comes as a response to the new tariffs imposed by the Canadian government on American goods.
Here’s the situation: the U.S. has slapped a hefty 25% tariff on imports from Canada and Mexico. In retaliation, Canadian Prime Minister Justin Trudeau has done the same, imposing a 25% tariff on $155 billion worth of American goods, including chocolate. Since Lindt sources about 50% of its chocolate for Canada from the U.S., this could have significantly increased costs. But instead of absorbing those extra expenses, Lindt is making a strategic move—shifting all Canadian supply to Europe.
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Lindt’s CEO, Adalbert Lechner, has made it clear that Canada, one of their top 10 markets, can be fully supplied from Europe. Their European factories are ready to take over, and they expect this transition to be completed by mid-2025. To make the switch smoother, Canadian retailers have already started stockpiling Lindt chocolates from U.S. factories, ensuring customers won’t suddenly see empty shelves.
Now, let’s talk about the financials. Transporting chocolate from Europe is a bit more expensive, but Lindt’s CFO, Martin Hug, mentioned that it’s still cheaper than paying the 25% tariff on U.S.-made products. Plus, there’s another benefit—Canadian consumers might actually prefer chocolates made in Europe over those from the U.S., avoiding any negative sentiment tied to American goods during this trade war.
However, even with this change, don’t expect Lindt chocolates to get any cheaper. Cocoa prices have tripled in the last two years, forcing Lindt to raise its prices by 6.3% in 2024. And with costs continuing to rise, chocolate lovers might have to dig a little deeper into their wallets in 2025.
So, while Canadians will still get their beloved Lindt treats, they’ll soon be arriving from across the Atlantic instead of just across the border. The trade war is reshaping supply chains, and Lindt is making sure its sweet business stays strong despite the tariffs.
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