The story of herbal confectionery brand Ricola is one of Swiss agricultural and manufacturing prowess, innovation, sustainability principles and high ambition, as we discovered on a recent visit.
The family company, based in Laufen in the Basel region, was founded by Emil Richterich in 1930, and the Richterich family, now represented by its fourth generation, continues to own and direct the company today.
Emil, originally a baker with a passion for herbs and herbal remedies, created the famous 13-ingredient recipe in 1940, and the blend remains a closely guarded secret even today.
The brand name – originally Richterich and Compagnie, Laufen – changed soon after, as the reputation of the business grew. There were several Richterichs in the Laufen area, so to avoid confusion with their businesses, Emil took the first two letters of each word in his company name to create ‘RiCoLa’ from 1946.
From there the speciality confectionery maker’s fortunes rose steadily, and today, Ricola produces nine billion drops a year, 90% of which are exported, with the USA, Germany, France, Italy and Switzerland the largest markets, and travel retail also playing a significant role in sales and marketing terms (see below).
Crucially for the future, Ricola achieved double-digit sales growth in Asia last year, with new distribution partners signed up to boost the business in an emerging region for the brand.
As Chief Executive, Thomas Meier is tasked with writing the latest chapter in this almost 100-year story.
He joined the team in May 2019, at a time when the company’s strong growth, its intensified internationalisation and advancing digitalisation created new complexity for management.
Meier, who previously spent 20 years in senior posts with branded food groups, and had been CEO of Franke Coffee Systems and before that Managing Director Asia Pacific at Lindt & Sprüngli, was a strong fit, with his international expertise and Swiss roots – he hails from Bülach in the Canton of Zurich.
Outlining the strategy, Meier tells The Moodie Davitt Report: “Building on a record year in 2023, Ricola has set ambitious goals for 2024 to drive sustainable growth. Key priorities include expanding our production capabilities in Laufen, Switzerland, to exceed ten billion drops annually, and making significant advances in the UK market.”
Innovation remains a driving force, he says, with a dedicated Innovation Lab exploring new technologies, trends and opportunities. Ricola, he notes, is also making progress “on digitalising and standardising our global processes and data to optimise planning and decision-making”.
94 years on from its founding, Ricola remains a particularly Swiss success story with all of the herb growing in Switzerland, plus all production and packaging sited in Laufen. Of its 600 employees, 480 are in Switzerland.
The connection to Ricola’s herb growers is a key element in the story. Until the 1980s, most of the herbs were grown locally, but by then the popularity of the brand – which has been exported from 1960 onwards – meant that production could not keep up.
Initially, the family was helped by people around Laufen who produced herbs in their own gardens for some extra income, but this was not large-scale enough to satisfy demand. By coincidence, in 1985 the Swiss authorities were grappling with the issue of how to ensure that mountain farmers could maintain their falling incomes from agriculture.
A solution presented itself in the form of Ricola, which struck partnerships with many growers. As it turned out, the quality of the herbs grown by the mountain farmers across regions such as Valais, Val Poschiavo, Emmental, Central Switzerland and the southern foothills of the Jura was (and remains) excellent.
Ricola retains its close connection to these now long-standing partners, who number almost 100 in all (see panel).
The herbs are all naturally grown under Bio Suisse rules, without herbicides or pesticides – and the sustainability story is one that the company is immensely proud of.
B Corp certification, achieved in 2024, is Ricola’s latest milestone, reflecting the family-owned company’s commitment to environmental protection and social responsibility.
To achieve this certification, Ricola developed a comprehensive sustainability approach, identifying six core areas – agricultural principles, waste management, packaging innovation, climate protection, water conservation and ethical purchasing – each with targets. Ricola must measure itself against these pillars every three years for recertification.
Meier says: “B Corp certification means that Ricola has met the high standards of the non-profit organisation B Lab in terms of social and environmental impact, legal obligations for responsible corporate practices, and public transparency. Ricola is the first company in the cough-drop industry to receive B Corp certification.”
He adds: “We are committed to making further strides in our six impact areas, making [2024] a landmark year in our sustainability journey.”
On wider thinking about sustainability, Meier says: “Sustainable thinking and action are part of Ricola and have formed an important basis for corporate decisions for decades. The sustainability strategy is based on our credo ‘Sustainability is in our nature’.
“Ricola is committed to greater biodiversity and supports the sustainable cultivation of 25,000 tonnes of IP Suisse sugar and around 190,000 tonnes of sugar beet every year, together with IP Suisse, an association of family farmers specialising in integrated production. To this end, Ricola has entered a long-term collaboration with IP Suisse.”
Ricola’s success has spawned imitators in Switzerland but none with global scale. Ricola remains a brand that can call on its secret blend, lengthy heritage and on a flavour innovation drive (with around 60 variants) that is unmatched in the segment.
That innovation focus helps sets it apart and is driven by blending a near century-old recipe with modern techniques.
Meier says: “Ricola attaches great importance to innovation and is constantly developing new products, especially with low-calorie sweeteners and sustainable packaging to satisfy its customers.
“Our research and development department is constantly testing new products, combining innovative approaches, traditional knowledge and the results of intensive market tests. Our declared aim is to continue to delight consumers with great-tasting products. Our efforts are always focused on the outstanding quality of the raw materials and a good balance between taste and functionality.”
The offer is diverse, ranging from over 50 regular and sugar-free herbal drops to speciality items and teas. The most successful product worldwide remains Ricola’s Original Swiss Herb, but flavours such as lemon balm and elderflower are also popular in many of the 45 markets in which it is sold.
In 2023 Ricola launched the flavour Raspberry Lemon Balm in Switzerland and Throat Balm and Ricola Cherry in the USA, among others. Further new products are in development for this year.
Role of travel retail
Travel retail plays a key role and it is a channel that Meier is dedicated to growing, with Head of Global Travel Retail Andreas Reckart leading its expansion.
The heartland for the travel business is in Europe but Ricola has eyes for global growth, with Asia Pacific a key target region.
Travel retail offers a big opportunity to showcase the brand’s identity and serves as an international showcase as well as a pure sales channel (see panel).
Meier says: “Our company’s vision is to ‘bring the delight of naturally healthy Swiss Alpine herbs to everyone, every day, everywhere.’ Naturally, this also includes travel retail spaces like airports, airlines, ferries or cruises. Travel retail is an integral part of our growth plans, with Europe and Asia being the focus.
“The role of the channel is certainly that of a brand showcase to reflect the status of Ricola as an international brand and the opportunity to connect with our consumers – not only when they are at home but also when they travel. We also see travel retail as a commercial opportunity that can help us generate interesting revenues. Ultimately, it’s a dual strategy that we are pursuing.”
Meier highlights the retailer opportunity to generate incremental sales, given that Ricola represents a sub-category of its own, straddling confectionery and health-related products. “It’s a win-win situation. Having space to display our brand and to communicate the benefits of our products is an added value that usually translates very positively into commercial success.”
On how a good partnership looks, Meier adds: “From our point of view, [it] is based on trust and benefits all parties involved with equal investment and risk. The longstanding relationships we have with our suppliers and distribution partners in Switzerland and worldwide are a perfect example.”
Independence and innovation
Four generations on, Ricola remains firmly and profitably in family hands, despite sitting on shelves alongside some of the biggest names in the international food business. What has kept the company successful against its heavyweight rivals and how will it continue to prosper?
Meier replies: “Ricola attaches great importance to the roots of the family business and draws inspiration from them to shape its future. For us, people come first, whether they are consumers, employees, or partners. We are aware of our traditions and innovative, human and humorous, but also entrepreneurial and focused on performance.
“Ricola ensures that its roughly 600 employees enjoy working for the family business and that everyone has plenty of room for development. At our Ricola training centre, we train apprentices in six different professions and offer career opportunities in an international environment with a family feel. As CEO, I take regular lunches with our apprentices to understand their motivations.
“On the customer side, we want everyone to have the opportunity to enjoy Ricola products as often as possible. That is why it is important to us to seek proximity to consumers around the world. This includes attractive spaces like airports, airlines, ferries, or cruises. We also aim to constantly explore new markets wherever possible.”
The business has its challenges too, not least the strong Swiss Franc, which affects pricing for any export-led Swiss company.
Meier adds: “High raw material prices and the global geopolitical situation are also a challenge. Added to this are climate change and rising temperatures in the Alpine region, where our herbs come from. It is important to take care of nature, as Ricola owes everything to it.” (continued below next panel)
Sharpening the travel retail focusRicola Head of Global Travel Retail Andreas Reckart addresses the priorities for the Swiss company in this Q&A.  How would you describe the strategy for Ricola in travel retail today? This business and the relationship with our retail partners is managed directly by us. This does not mean, of course, that we are not interested in expanding our business in other channels or regions, but rather that we may choose to work with distribution partners to make this happen, rather than trying to manage do everything ourselves. Where does the brand sit in the travel retail category conversation – can it straddle categories and even move beyond confectionery? We also have the option of putting more emphasis on the functional benefits of our products, such as the soothing effect on voice and throat, which works very well in a health and wellness or healthy snacking environment. As a matter of fact, our products are listed in more than one category with several of our retail partners. What are the purchasing drivers for Ricola in travel retail and do these differ from the domestic market? In travel retail we address this purchase driver with a very successful portfolio of tin SKUs, both with and without sugar. Additionally, our assortment also comprises larger SKUs for sharing and gifting, that work well with the right consumer profiles.
Is succeeding in the category about differentiation of product? What other dynamics are driving the business? These tins are our top sellers in travel retail and we receive many inquiries from consumers who ask where they can buy them in their domestic market. Going forward, we may also choose to introduce new flavours in travel retail as limited editions, but to do that we still need to increase the overall business and the visibility of the Ricola brand. What are the priority and big opportunity markets and regions today? Overall, even though we made significant inroads in the last few years in travel retail, there are still a lot of white spaces for us to cover and we are very excited about the potential that this offers. We have not even started to really showcase and activate our brand yet, which, if done the right way, will provide us with an additional boost. |
That means growing in a steady, sustainable way, just as it has for over nine decades.
“That’s why we are planning to expand our production capacities in the medium to long term,” says Meier. “In addition, there are major digitalisation projects to network the family business even better worldwide. The aim is to ensure that we all have the same data, whether in Hong Kong, Shanghai or our headquarters in Laufen, Switzerland, so that we can plan better.
“Ricola’s long tradition and strong brand name help reduce potential negative effects. Consumer trust is an important cornerstone of our success: In 2023, Ricola was again voted ‘Most Trusted Brand in Switzerland’.”
With that accolade and a 94-year heritage serving as inspiration, Ricola management hopes the brand will continue to be an emblem of Switzerland, whose products carry such respect overseas.
Meier concludes: “We are proud of our roots and our ability to uphold the traditional values of a family company while maintaining exceptional quality standards and a drive to innovate. Ricola has always stood for naturally grown alpine herbs of the highest quality, Swiss origin, and the balance between enjoyment and functionality of the flavoursome Ricola products.
“The Board of Directors and management of the Ricola Group ensure that the competitiveness of the family business and thus the brand is guaranteed in the long term. For example, the innovation laboratory in Laufen researches new technologies, consumer trends, digital transformation, and opportunities for future business areas to ensure Ricola’s long-term success.”
An unrelenting emphasis on ingredient and product quality, innovation, social and family values, all underpinned by strong relationships with farmers, community and overseas partners, have served Ricola well, and point to a bright future through its tenth decade. ✈
Ensuring quality control from farm to factoryA visit to Laufen and Ricola’s production facilities offers a fascinating view into this traditional Swiss product, the natural ingredients that go into it, the craft of its makers and the innovation that guides the brand’s development. 
On a warm June day we arrive to the picturesque home and farm of Simon Duppenthaler, a supplier of herbs, near the village of Mechnau in the Canton of Bern. Here, we tour his lines of herbs that are now being harvested and hear and see first-hand how a family concern works alongside the brand owner. The farmer earns about 20-25% of his income from herb-growing, and is paid not only by weight but also by quality of product supplied – in many cases more flower, less stem. As he explains the key moments in the growing process, Ricola’s deep roots within and respect among the farming community across Switzerland are evident.  Harvesting runs from May to late September for most herbs, with many flowering at different periods of the year. The herbs are collected and 95% are dried by the farmers before being taken to Ricola’s production centre. Back at headquarters, under the expert guidance of herb expert Veronika Ziemke I learn how Swiss herbs – ranging from elderflower, marshmallow, yarrow and lady’s mantle to sage, thyme, cowslip and peppermint – grown across the country are harvested and collected in Laufen.  Many of the plants (all grown in accordance with Bio Suisse standards) have anti-inflammatory properties, helping ease the airways and assisting with sore throats. Veronika invites me to smell and taste peppermint, sage and elder. The herbs are firm, ripe and intensely aromaed and flavoured. The unusually designed Herb Centre, built in 2014 from loam and gravel, is a fully sustainable storage facility for the herbs when they arrive and although it is not heated, maintains a relatively constant temperature year-round. In the Herb Centre all the inbound herbs are weighed, tested for quality, chopped to the right size and prepared for mixing and production.  The mechanised production system then mixes the right amount of the natural 13-herb blend which, upon completion, then crosses to the production site, where it is cooked and finished. From up to 1,400 tons of herbs a year come nine million drops, all made in the state-of-the-art factory nearby, which we tour with Head of Production Frank Meyer. Here the blending of ingredients takes place, and one sees a long, continuous flow of individual product mixes on conveyor belts, then the finished sweets moving in harmony towards the end packaging station.  They are then packed into their final boxes and tins, which evoke a taste of Laufen and Swiss quality in their colourful designs, all overlaid with the instantly recognisable Ricola branding. We close our day in Laufen with a visit to the company’s flagship store in the town, opened last year. There we encounter fans of the brand, who have booked an educational workshop to learn more about Ricola and play around with some herbal recipes.  It’s an enjoyable place to while away an hour or so. There’s a product range designed with gifting in mind; a neat history of the company dotted around the walls; interactive features that explain Ricola’s herb story and the opportunity to buy special limited editions not commonly found in Switzerland. You can even take a selfie using a built-in camera booth and create your own Ricola flavour variant via a digital game. It all contributes to the memory making from this quiet corner of Switzerland that has such global impact. |
