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🚨 Lindt & Sprüngli vs. The Hershey Company: A Sweet Showdown 🍫 🚨 Two global chocolate giants, two very different strategies, but who’s leading the race? Let's break it down: 💰 Revenue (2023) Hershey: $11.2B Lindt: $6.2B Hershey dominates with its diversified portfolio in the U.S., while Lindt focuses on premium chocolate and international expansion. 📈 Yearly Revenue Growth Hershey: 15.0% (2023) Lindt: 7.0% (2023) Lindt is growing steadily but still lags behind Hershey’s faster climb. 📊 Net Profit (2023) Hershey: $1.86B Lindt: $798M Despite impressive topline growth, Lindt's profits don’t yet match Hershey’s streamlined cost structure. 🏭 EBITDA (2023) Hershey: $2.95B Lindt: $1.19B Hershey’s efficiency in operations is clear here too. 💳 Net Debt (2023) Hershey: $5.03B Lindt: $1.42B Lindt keeps its balance sheet leaner, giving it flexibility for future investments. 💵 Free Cash Flow (2023) Hershey: $1.13B Lindt: $464M Hershey’s ability to generate cash flow is unmatched. 👩💼 Headcount (2023) Hershey: 19,600 employees Lindt: 14,500 employees Hershey’s larger workforce supports its diversified operations. 🔬 R&D Investment (2023) Hershey: $50M Lindt: $24M While both are innovating, Hershey is clearly spending more on research. 🏢 Market Cap (2024) Hershey: $36B Lindt: $26B Hershey takes the lead in investor confidence. 📊 Margins (2023) Gross Margin: Hershey 67% vs. Lindt 44% EBITDA Margin: Hershey 26% vs. Lindt 19% Hershey’s cost structure gives it a clear edge in profitability. Final Thoughts 💡 Hershey’s focus on diversification and the U.S. market has paid off with strong profitability and efficiency. Meanwhile, Lindt’s premium, international approach is building a strong foundation for future growth but hasn’t yet caught up in bottom-line performance. Who’s your favorite in the chocolate wars? 🍬 Let’s hear your thoughts below! #Hershey #Lindt #ChocolateIndustry #BusinessAnalysis #Strategy Jens Taylor, Sam Farooqi, Gino Caponi, Kris Meulen, David Hulays, Lauren Pruitt, Vinny Rinaldi, Ana Sagaon, SHRM-SCP, Eric Brewer, Charlie Chappell, Eric Clawson, Marisa Magnotta, MBA, LaQuita Gary, Mark Mazick, John Maitrejean, Rohan Chintalapati, Christopher Gaughan, Michael Reese, Edward Edson, Melissa Elliott Bryce, Laura Renaud, Ryan Riess, Daniel Mohnshine, Maurice Stanfer, Ryan Brice

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Joshua Novick Joshua Novick is an Influencer

M&A, Corporate Finance. Managing Partner @ Bondo Advisors. I can help you sell your company!

🍫Lindt & Sprüngli vs. 🍬 The Hershey Company: The only universal truth is that everybody likes chocolate. 𝐂𝐡𝐨𝐜𝐨𝐥𝐚𝐭𝐞 Market🌍 The global chocolate confectionery market was valued at $127B in 2023 and is projected to grow to $169B by 2029 (Statista). 𝐅𝐨𝐜𝐮𝐬 🎯 🍫Lindt & Sprüngli is all about high-end chocolate with a highly international focus. Nearly 100% of their revenue comes from premium chocolate, and they’re strengthening their focus on direct-to-consumer sales through 523 branded stores worldwide. 🍬Hershey’s, on the other hand, is very US-centered and has diversified significantly into gum, mints, protein bars, and salty snacks with acquisitions like Dot’s Pretzels and SkinnyPop Popcorn 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 📊 🍫Lindt & Sprüngli: Europe: 46.3% (Germany 14.7%, France 8%, UK 6.3%) North America: 40.6% (U.S. 34.8%, Canada 5.3%) Rest of the World: 13.1% 🍬Hershey’s: North America: 91.5% Rest of the World: 8.5% In the U.S. chocolate market, Hershey’s leads with 45.4% market share, followed by Mars (26.8%), Lindt (9.4%), and Ferrero (7.7%). 𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧🚚 🍫Lindt & Sprüngli: A strong direct-to-consumer strategy with 523 owned stores in 24 countries and a growing presence in travel retail (airports), which saw 20% growth in 2023. 🍬Hershey’s: Focuses on traditional distribution, with 28% of its 2023 sales coming from McLane Company, Inc., which distributes to convenience stores, Walmart , and other mass retailers. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐬 💰 🍫Lindt (2023): $6.2B in revenue, 19% EBITDA margin. 🍬Hershey’s (2023): $11.2B in revenue, 26% EBITDA margin. Hershey’s benefits from scale, diversification, and dominance in its home market. 𝐺𝑟𝑜𝑠𝑠 𝑀𝑎𝑟𝑔𝑖𝑛𝑠: 🍫Lindt: 67% (premium positioning pays off!) 🍬Hershey’s: 44% (diversification and lower-priced products dilute margins). 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑝𝑒𝑟 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒: 🍫Lindt: $308,000 🍬Hershey’s: $546,208 Hershey’s streamlined focus on one market and its scale advantage drive higher employee productivity. 𝐌𝐲 𝐭𝐚𝐤𝐞 🧁 🍬Hershey’s remains the larger player in both size and profitability, benefiting from its concentration in the U.S. market and streamlined cost structure. Its strategy to diversify beyond chocolate into snacks, and mints provides additional growth avenues. 🍫Lindt, on the other hand, has chosen to remain focused on chocolate and is pursuing growth through internationalization and direct-to-consumer channels, including their branded luxury stores. This strategy is paying off in top-line growth, but it hasn’t yet translated to bottom-line profitability on par with Hershey’s. By the way, I’m a huge fan of Lindt & Sprüngli España y Portugal! I especially love the Gianduiotti—I can’t stop once I start eating them.

  • Lindt versus Hershey: the Chocolate War
Joshua Novick

M&A, Corporate Finance. Managing Partner @ Bondo Advisors. I can help you sell your company!

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Thanks for sharing!

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