Specialist
Former VP at Chocoladefabriken Lindt & Sprungli AG
Agenda
- European chocolate demand trends and growth fundamentals
- Coronavirus implications on channel shifts and profitability
- Competitive landscape overview
- Medium-term growth outlook
Questions
1.
Can you start by sizing the global chocolate industry? How does demand break down across Europe, North America and China?
2.
How is the European market split across dark, milk and white chocolate categories? Has there been more growth in dark chocolate?
3.
You estimated dark chocolate has a 30% market share in France, relative to a 10% market share across Europe. Might other European markets shift towards that 30%? Is 30% quite mature for dark chocolate?
4.
How do profit profiles differ across dark, milk and white chocolate?
5.
You referenced the increase in the production price. Is the push towards premiumisation in the market essentially driven by an effort to maintain industry margins?
6.
Would you say Lindt, Mars, Hershey’s or any of the other key chocolate players have a particularly proactive approach to innovation?
7.
How does the chocolate market break down across its various channels, whether retailers, B2B or B2C? How has the pandemic impacted the overall chocolate market and these individual channel dynamics?
8.
Which of these channels are more beneficial to manufacturers’ margins? You referenced the out-of-home channel, encompassing restaurants and bakeries. Would manufacturers typically prefer to sell more in their out-of-home or retail channels, given the profitability of each?
9.
To what extent has the coronavirus impacted supply or manufacturing in the chocolate market?
10.
There have been disruptions in West Africa, with significant debates around pricing for cocoa farmers. Is this a risk that might hit the chocolate industry in the coming years, or are these continual discussions?
11.
What steps are the major chocolate players taking to improve sustainability and environmental decision making, given the increasing importance of this trend across many industries? Many consumers want to know where the chocolate has come from, as you said. How does this impact supply chains and operations?
12.
What operational innovation has been driven by complexities stemming from sustainability practices?
13.
Are any players doing particularly well at improving sustainability and helping farmers get a better yield?
14.
What is your outlook for profitability and margins in the chocolate industry over the next few years? Do you expect margin pressure?
15.
How might a recession impact growth across the industry as a whole, and in Europe especially?
16.
What would you pinpoint as the biggest risks facing the European chocolate industry? Are these risks primarily centred around supply?
