Important points
Family-owned Swiss company Lederach is committed to producing premium chocolate exclusively in its home country after being hit by US tariffs that at one point soared to nearly 40%. “Never,” CEO Johannes Läderach said when asked if the company had ever considered opening a production site in the United States to avoid export duties. “Frankly, consumers want Swiss chocolate to be made in Switzerland, just like Swiss watches should be made in Switzerland,” he told CNBC. The company, which makes chocolate by hand, faced a shock over the summer when U.S. tariffs on Swiss imports jumped to 39%, but have since settled to 15%. The levy was imposed amid further headwinds, including a strong Swiss franc and soaring cocoa prices. “This year has been full of challenges,” Lederak said. Cocoa prices have soared over the past two years, largely due to supply shortages due to climate change. Prices have since fallen from last year’s peak, but are still about 50% higher than before 2024. @CC.1 5Y Line Cocoa prices have skyrocketed over the past two years, largely due to climate change-related supply shortages. Despite the headwinds, Lederach still expects solid revenue growth of around 20% in 2025 and 2026. The company has doubled in size over the past five years and now operates 250 boutiques in 28 countries. Lederach attributes this to strong same-store sales growth and aggressive expansion, opening more than 50 stores this year alone. The United States remains a key market in which Lederach continues to invest heavily. “We have invested in opening eight stores this year, and we plan to open another 10 next year, bringing the number of stores to around 70,” the CEO said, adding that the company implemented “some price increases in the summer” to offset some of the rising costs of cocoa, the strong Swiss franc and customs duties. He also rejected the idea of substituting cocoa content in recipes to manage variability, saying his brother and chief creative officer Elias Lederach was “absolutely opposed to modifying any recipes.” Lederak also pointed out that although labor cost increases are higher, they are more predictable than cocoa price fluctuations, giving the handcrafted approach an advantage over industry competitors. The boom in weight-loss drugs, such as those made by Novo Nordisk and Eli Lilly, has created uncertainty about demand for some foods, including treats such as chocolate, because these drugs interfere with people’s appetites. “I think it’s a good thing that people are health conscious, and I certainly agree,” Lederak told CNBC. “Life is all about balance, but life is nothing without luxury. That’s why we share the joy of fresh Swiss chocolate.”
