SWITZERLAND. Chocolat Frey is exiting the travel retail industry, saying the current economic environment has made it impossible to achieve a successful market position.
The Swiss chocolate brand highlighted unfavourable exchange rates and the increased cost of raw materials as major factors in its decision, which will see it withdraw its business from the export and travel retail markets by the end of the year.
The company said in a statement: “Due to the changing business and economic environment, Chocolat Frey has been forced to undertake an extensive review of its export strategy.
“On the basis of this review, Chocolat Frey has observed that a sustainable brand business requires substantial long term investments. Due to the current economic environment (exchange rates/increased costs of raw materials, etc.) the company can no longer fulfil the requirements needed to achieve a sustainable and successful market position.
“For this reason, the Board of Chocolat Frey has decided to a withdrawal from the brand business in all export markets and in the travel retail worldwide by the end of the year.”
Head of Travel Retail Claudia Rosenberg recently told The Moodie Report that raw material costs and the economic climate represented major challenges for the confectionery category, but reported that the company had seen “strong growth and received a great deal of interest in our brand” in travel retail.
“This is the first year that we have had a full team dedicated to travel retail, which has allowed us to focus on building our business globally,” she said in August.
