Although Lindt & Sprngli AG experienced 2.3 percent organic growth and expanded its market share in 2009, the Swiss chocolate maker says its 1.9 percent drop in annual sales is indicative of the still-difficult market conditions for premium chocolate. “In view of the challenging situation for premium and luxury products,” read a statement from the company, “this sales growth is a satisfactory result.”

In the U.S., sales demonstrated “above-average development especially in the second half of the year,” the company added. It said both the Lindt and Ghirardelli brands gained market share in the U.S., while growth in Europe was “modest.”

Higher commodity prices especially for cocoa were cited as continuing to challenge profits in the first half of 2010, while a more positive outlook was offered for the third and fourth quarters.

“In the second half of 2010, Lindt & Sprngli expects to see a gradual improvement of the economic environment and consumer sentiment in most countries and assumes that the trade will have a more optimistic stance as the year progresses. This in turn will have corresponding impulses on premium products.”

Source: Candy & Snacks Today