Austrian chocolate maker Franz Hauswirth files for bankruptcy
The Austrian producer of chocolate Santas and bunnies, Franz Hauswirth, has declared bankruptcy. The company's debt reached 7 million euros.
The financial problems of the confectionery manufacturer arise from increasing costs of raw materials, energy, and wages, as well as the effects of the pandemic.
The end of Austrian chocolate Santas as costs rise
Franz Hauswirth, founded in the 1940s, exported its products to over 30 countries. It is currently struggling with debt amounting to 7 million euros (approximately 2.7 million pounds sterling).
Despite financial difficulties, the Austrian company hopes for a restructuring that could save jobs for about 120 employees.
The European confectionery industry is experiencing the effects of soaring cocoa prices, putting pressure on manufacturers' financial stability. Recently, cocoa costs have climbed to extraordinary levels. Krzysztof Pawiński, CEO of Maspex, noted that a packet of DecoMorreno has increased in value so significantly that it could almost be considered a viable investment.
Prices have fallen to over $8,000 per tonne (around 6,500 pounds), but that's still double what they were in 2023. Manufacturers are further burdened by the increase in sugar prices (about 20%). This has made sweets and desserts the second-fastest rising products in price.
Challenges for European candy manufacturers as Wedel explains
Franz Hauswirth is not the only company facing issues. German companies Leysieffer Genusskultur GmbH and Kessko are also encountering difficulties. French producer Chocolat Poulain avoided closure thanks to a takeover by Andros.
