Austrian chocolate maker Franz Hauswirth declares bankruptcy
The Austrian chocolate Santa and bunny producer, Franz Hauswirth, has declared bankruptcy. The company's debt has reached 7 million euros.
The financial troubles of the candy manufacturer are attributed to the rising costs of raw materials, energy, and wages, alongside the lingering effects of the pandemic.
The end of Austrian chocolate Santas: Costs on the rise
Founded in the 1940s, Franz Hauswirth exported its products to more than 30 countries. The company is currently grappling with a debt of 7 million euros (around 7 368 000$).
Despite these financial challenges, the Austrian company remains hopeful about restructuring efforts that could preserve jobs for around 120 employees.
Across Europe, the confectionery sector is grappling with rising cocoa prices, straining manufacturers' financial stability. Recently, these prices have escalated dramatically. Krzysztof Pawiński, CEO of Maspex, illustrated the trend by suggesting that the increased value of a packet of DecoMorreno now makes it comparable to an investment.
Prices have dropped to over $8,000 per ton, but that's still twice as much as in 2023. In addition to cocoa, manufacturers face increased sugar prices (about 20%). Consequently, candies and desserts have become the second-fastest rising products in price.
Problems for European candy manufacturers: wedel explains
Franz Hauswirth isn't the only company facing challenges. German companies Leysieffer Genusskultur GmbH and Kessko are also experiencing difficulties. Meanwhile, French producer Chocolat Poulain narrowly avoided closure due to a takeover by Andros.
