Latest news with #BarryCallebaut
Yahoo
5 days ago
- Business
- Yahoo
Swiss Chocolate Stocks Diverge as Costly Cocoa Takes Toll
(Bloomberg) -- Shares in two of Switzerland's biggest chocolatiers are on markedly different courses this year as soaring cocoa prices prove a tougher obstacle for one than they do for the other. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design Lindt & Spruengli AG has risen 28% to date as the Lindor maker has shown itself able to pass on higher costs to customers, helped by the launch of crowd-drawing products such as Dubai-style chocolate. By contrast, Barry Callebaut AG has fallen 30% as the world's leading manufacturer of bulk chocolate is weighed down by a lack of pricing power. The cost of cocoa is a challenge for both companies, with the price of the key commodity remaining stubbornly high after more than quadrupling in 2023 and 2024. Yet while Lindt plans double-digit price increases this year, Barry Callebaut's customers — which include Nestle SA and Hershey Co. — have been pausing orders as they wait for prices to come down. 'Barry Callebaut faces a perfect storm of subdued demand and limited pricing power,' said Bloomberg Intelligence analyst Ignacio Canals Polo. By contrast, 'Lindt stands out amid the current cocoa market turmoil, leveraging its premium positioning.' Lindt, which operates in the high-end segment of the market, has been able to gain market share from competitors such as Mondelez International Inc. The introduction of its Dubai-style chocolate at the end of last year has been touted as a 'blockbuster' by UBS Group AG analyst Joern Iffert, who noted that it's one of Lindt's 'best product launches in history.' Price increases will continue this year due to higher cocoa prices, said a spokesperson from Lindt, whose headquarters are located only about 10 kilometers (6.2 miles) from those of Barry Callebaut in the canton of Zurich. Still, the firm expects the trend from quantity to quality consumption of premium chocolates to continue. Meanwhile, customers of Barry Callebaut have been reducing the chocolate content in their products, hurting margins. In April, the company cut its sales outlook for the year, sending the stock lower. On Thursday, Barry Callebaut fell 0.9%, while Lindt was down 1.2%. For Barry Callebaut, another pressure point is the interest of short sellers as cocoa supplies continue to tighten and West African growers hold back next season's sales in anticipation of higher prices. Shares out on loan, an indication of short interest, were at 23% of the firm's free float as of June 3, according to data from S&P Global Market Intelligence. 'With every cocoa price increase you have a negative impact on free cash flow,' said Damian Burkhardt, Swiss equities lead portfolio manager at EFG Asset Management. 'That is the reason why short interest on the name is so high.' The firm's executives have struggled to navigate a difficult environment. Barry Callebaut shares have had a total negative annualized return of 30% under Chief Executive Officer Peter Feld, who took the helm in April 2023 following the sudden departure of Peter Boone. That compares with a positive return of about 14% for peers during the same period, according to data compiled by Bloomberg. Barry Callebaut didn't respond to a request for comment. To be sure, average analyst price targets suggest the fortunes of the two Swiss chocolate makers could reverse in the next 12 months. Their predictions show Barry Callebaut, which fell to a 2011 low last month, rallying 31% from current levels. Meanwhile Lindt, which is hovering near a record high, could drop 12%. BNP Paribas Exane analyst Mikheil Omanadze says Lindt shares are 'expensive.' But for Morgan Stanley's David Roux, Lindt has 'stood out during the ultimate test for chocolate brands.' Even with this year's share rally, he sees the chocolate maker's premium to European consumer staples peers being supported. --With assistance from Joe Easton. (Updates share prices.) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Swiss Chocolate Stocks Diverge as High Cocoa Prices Take Toll
(Bloomberg) -- Shares in two of Switzerland's biggest chocolatiers are on markedly different courses this year as soaring cocoa prices prove a tougher obstacle for one than they do for the other. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design Lindt & Spruengli AG has risen 29% to date as the Lindor maker has shown itself able to pass on higher costs to customers, helped by the launch of crowd-drawing products such as Dubai-style chocolate. By contrast, Barry Callebaut AG has fallen 29% as the world's leading manufacturer of bulk chocolate is weighed down by a lack of pricing power. The cost of cocoa is a challenge for both companies, with the price of the key commodity remaining stubbornly high after more than quadrupling in 2023 and 2024. Yet while Lindt plans double-digit price increases this year, Barry Callebaut's customers — which include Nestle SA and Hershey Co. — have been pausing orders as they wait for prices to come down. 'Barry Callebaut faces a perfect storm of subdued demand and limited pricing power,' said Bloomberg Intelligence analyst Ignacio Canals Polo. By contrast, 'Lindt stands out amid the current cocoa market turmoil, leveraging its premium positioning.' Lindt, which operates in the high-end segment of the market, has been able to gain market share from competitors such as Mondelez International Inc. The introduction of its Dubai-style chocolate at the end of last year has been touted as a 'blockbuster' by UBS Group AG analyst Joern Iffert, who noted that it's one of Lindt's 'best product launches in history.' Price increases will continue this year due to higher cocoa prices, said a spokesperson from Lindt. Still, the firm expects the trend from quantity to quality consumption of premium chocolates to continue. Meanwhile, customers of Barry Callebaut have been reducing the chocolate content in their products, hurting margins. In April, the company cut its sales outlook for the year, sending the stock lower. For Barry Callebaut, another pressure point is the interest of short sellers as cocoa supplies continue to tighten and West African growers hold back next season's sales in anticipation of higher prices. Shares out on loan, an indication of short interest, were at 23% of the firm's free float as of June 3, according to data from S&P Global Market Intelligence. 'With every cocoa price increase you have a negative impact on free cash flow,' said Damian Burkhardt, Swiss equities lead portfolio manager at EFG Asset Management. 'That is the reason why short interest on the name is so high.' The firm's executives have struggled to navigate a difficult environment. Barry Callebaut shares have had a total negative annualized return of 30% under Chief Executive Officer Peter Feld, who took the helm in April 2023 following the sudden departure of Peter Boone. That compares with a positive return of about 14% for peers during the same period, according to data compiled by Bloomberg. Barry Callebaut didn't respond to a request for comment. To be sure, average analyst price targets suggest the fortunes of the two Swiss chocolate makers, which are based about 10 kilometers apart from each other in the canton of Zurich, could reverse in the next 12 months. Their predictions show Barry Callebaut, which fell to a 2011 low last month, rallying 31% from current levels. Meanwhile Lindt, which is hovering near a record high, could drop 12%. BNP Paribas Exane analyst Mikheil Omanadze says Lindt shares are 'expensive.' But for Morgan Stanley's David Roux, Lindt has 'stood out during the ultimate test for chocolate brands.' Even with this year's share rally, he sees the chocolate maker's premium to European consumer staples peers being supported. --With assistance from Joe Easton. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
5 days ago
- Business
- Bloomberg
Swiss Chocolate Stocks Diverge as High Cocoa Prices Take Toll
By and Lisa Pham Save Shares in two of Switzerland's biggest chocolatiers are on markedly different courses this year as soaring cocoa prices prove a tougher obstacle for one than they do for the other. Lindt & Spruengli AG has risen 29% to date as the Lindor maker has shown itself able to pass on higher costs to customers, helped by the launch of crowd-drawing products such as Dubai-style chocolate. By contrast, Barry Callebaut AG has fallen 29% as the world's leading manufacturer of bulk chocolate is weighed down by a lack of pricing power.
Yahoo
21-05-2025
- Business
- Yahoo
Almond Ingredients Market Forecasts 2025-2030: Major Players like Barry Callebaut and Blue Diamond Growers Seek Opportunities in Expanding Almond Market
The almond ingredients market is poised to grow at a CAGR of 5.40%, reaching US$11.94 billion by 2030 from US$9.18 billion in 2025, driven by rising demand for plant-based and gluten-free products. Key market segments include bakery, dairy alternatives, and cosmetics. The Asia Pacific region is expected to see significant growth. Major players such as Barry Callebaut and ADM are shaping the competitive landscape. This comprehensive report offers crucial insights, market forecasts, and strategic guidance for businesses to leverage emerging opportunities. Almond Ingredients Market Dublin, May 21, 2025 (GLOBE NEWSWIRE) -- The "Almond Ingredients Market - Forecasts from 2025 to 2030" has been added to offering. The almond ingredients market is projected to grow significantly, with a CAGR of 5.40%, reaching an estimated value of US$11.94 billion by 2030, up from US$9.18 billion in 2025. This growth is driven by the increasing demand for almond-based products such as whole almonds, almond pieces, almond flour, paste, milk, oil, extract, and flavors, across various industries including food and cosmetics. Almond ingredients are particularly favored in the production of bakery and confectionary items, and the dairy industry is witnessing a significant uptake with plant-based alternatives popular among the vegan population. Market Trends: Growing Vegan Population: The rise in veganism is steering companies toward developing plant-based food products like almond milk and its derivatives such as cheese, butter, ice cream, and yogurt. Demand for Gluten-Free Products: A surge in the demand for gluten-free snacks and baked goods is further bolstering the almond ingredient market's growth, as these items increasingly incorporate almond-derived ingredients. Asia Pacific Growth: The Asia Pacific region is expected to experience substantial growth, spurred by a consumer shift towards healthier food choices and the increasing popularity of gluten-free products. Key Benefits of this Report: Insightful Analysis: Comprehensive market insights across major and emerging regions, addressing customer segments, socio-economic factors, and industry verticals. Competitive Landscape: Strategic business maneuvers by key players globally to facilitate market penetration strategies. Market Drivers & Future Trends: Analysis of dynamic factors and market trends shaping future developments. Actionable Recommendations: Strategic insights for uncovering new business streams and revenue avenues. Wide Audience: Resourceful for startups, consultants, SMEs, and large enterprises alike. Companies Featured Barry Callebaut Group Blue Diamond Growers Borges Agricultural and Industrial Nuts Olam International ADM Wonderful Company LLC Treehouse California Almonds Harris Woolf California Almonds John B. Sanfilippo & Son Inc. Royal Nut Company Dohler GmbH Bardakci Group Almond Ingredients Market Segmentation: By Type: Whole Almond Almond Pieces Almond Flour Almond Paste Almond Milk Almond Oil Almond Extract Others By Application: Bakery and Confectionery Dairy (milk substitute & ice creams and nut & seed butters) Snacks and Cereals Cosmetics Others By Region: North America Europe Asia Pacific South America Middle East & Africa Key Attributes: Report Attribute Details No. of Pages 148 Forecast Period 2025 - 2030 Estimated Market Value (USD) in 2025 $9.18 Billion Forecasted Market Value (USD) by 2030 $11.94 Billion Compound Annual Growth Rate 5.4% Regions Covered Global For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Almond Ingredients Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Reuters
23-04-2025
- Business
- Reuters
Lindt holds back on Canada supply shift, boosts local stocks
April 23 (Reuters) - Swiss chocolate maker Lindt & Spruengli (LISN.S), opens new tab said it is still working out how to deal with the escalating trade war launched by U.S. President Donald Trump and has temporarily increased stocks in Canada to cushion the impact of tariffs. The company said in March it would supply chocolate made in Europe to Canada to avoid tariffs imposed to counter higher U.S. customs duties. But since March, there have been several changes to tariffs placed on imports and exports from the United States, prompting many companies to adopt a wait-and-see approach to the changing trading conditions. "We have not adjusted any sourcing strategy as the situation develops so fast," a Lindt spokesperson told Reuters in an email on Tuesday. "As soon as we have a clearer and more stable overview of the situation, we decide if and how to adjust our sourcing strategy." The spokesperson said that shifting sourcing of products sold in Canada to Europe was "one option that is being discussed", but the company has not yet decided how to proceed. "This was one of the options that was considered and can be implemented if necessary," the spokesperson said. Lindt said it had temporarily increased stock levels in Canada as a safeguard against potential supply disruptions in light of the imposed counter-tariffs on products imported from the United States. In March, Lindt said that 50% of its Canadian chocolate supply originated from the United States, but those volumes could be entirely shifted to Europe. Lindt produces 95% of its U.S. market chocolates in its five domestic factories, which also serve Canada. This month, Swiss chocolate maker Barry Callebaut's (BARN.S), opens new tab chief executive said it was planning to increase its U.S.-based production to fend off effects of the "disruptive environment" in North America.
