Some Resilient European Businesses I Like. Part 2: Chocoladefabriken Lindt & Sprüngli (LISN)

This is part two of a series post I will write about some European companies that have managed to survive, resist and adapt over decades – or even centuries. Part one was about Tonnellerie François Frères (link). Today I would like to share some thoughts about one of the most iconic companies in Switzerland and one of the most recognized brands in the world by chocolate lovers: Lindt & Sprüngli (Lindt)

Judging by the statistics, Europeans enjoy chocolate like nobody else in the world. Of the 10 countries with higher per capita chocolate consumption, 8 are European. According to Statista, the world ranking is led by Switzerland, where the average consumption of chocolate is 11.8 kg per year. Chocolate can be consumed in various ways and in different formats, but these numbers roughly equate to the average Swiss eating more than 100 bars of chocolate every year.

Cocoa, the main ingredient in chocolate, is rich in plant chemicals called flavonoids, which can help protect the circulatory system. A study published by Harvard has found scientific evidence that moderate consumption of dark chocolate helps relax blood vessels and improve blood flow, lowering blood pressure. The truth is that whether or not it provides health benefits, the main reason the Swiss love chocolate is because it is a product with a lot of tradition behind it, and no company in the chocolate industry embodies tradition as well as Lindt & Sprungli (Lindt).

Founded in Switzerland in 1845 by David Sprüngli and his son Johann Rudolf Sprüngli, Lindt became the first company to produce tablet chocolate in the German-speaking regions of Switzerland. In the 20th century, Lindt would begin to acquire iconic chocolate shops, but it was not until well into the 1990s when it carried out the acquisition of such important brands as the Austrian chocolatier Hofbauer, the Italian Caffarel or the American Ghirardelli. All these brands are centuries old, represent each country's chocolate heritage and hide unique business stories. During the gold rush of the mid-19th century in the US, those who sold picks and shovels to miners were not the only ones making huge fortunes – Domingo Ghirardelli smartly discovered that exhausted miners loved chocolate to replenish energy and keep looking for gold.

Lindt has earned its spot in the hearts of chocolate lovers around the world. The maître chocolatiers (as they like to call themselves) have two centuries of experience and accumulated knowledge on how to make good chocolate and how to strengthen a brand that consumers associate with the highest quality. The company’s original recipes are still a well-kept secret, and this has been key to defend its precious brands against hundreds of failed copycats.

Lindt has established itself as one of the world's leading premium chocolate brands in a sector that is more competitive and complex than it may seem at first glance.