Rest of the World
The “Rest of the World” segment increased sales by 16.6% to CHF 646 million. The Group’s future markets, particularly Brazil, Japan, and China, achieved double-digit growth rates. The business segment Global Travel Retail benefited from the revival of international travel and even achieved triple-digit growth, confirming our confidence in the potential of this segment.
CHF 646 million
In the Australian market, which also includes sales from New Zealand, Lindt & Sprüngli achieved organic growth of 6.8%. As a result, the Lindt brand continues to hold its position as number 2 in this region. The three key franchises Lindor, Excellence, and the Gold Bunny account for the largest share of total sales. Lindor is the leading brand in the praliné market and has gained even more fans following the launch of the Milk Salted Caramel flavor. In the Excellence segment, the launch of the Almond and Mango flavor proved a success, as this fruit is particularly popular in Australia. The Gold Bunny continued to triumph in seasonal items. However, the Lindt Koala in particular – a local version of our Teddy – was once again a great success at Christmas. Growth in sales was achieved across all channels, with the Group’s own shops making the most significant gains. In Australia, Lindt can now be found even above the clouds: Qantas sweetens long hours of flying for its passengers with Lindt chocolate.
In the South African market, organic sales growth was 6.0%, mainly attributable to the Lindor key franchise, which consolidated its position as number 1 in the praliné segment. The launch of the new Lindor Double Chocolate flavor and Excellence bars in Mango and Almond also contributed to the growth. The South African market grew across all channels, but especially in the online business. Bricks-and-mortar retail was upgraded with the opening of the new flagship store on the Victoria & Alfred Waterfront in Cape Town.
The Chinese market achieved organic growth of 18.3%, thus significantly outperforming the market environment, which was still impacted by lockdowns. Market share in all channels was further increased both offline and online. Here, we are seeing a trend towards premium products across all products and channels. The sales channels are constantly being expanded. Lindt & Sprüngli now also uses the social media platform Douyin (TikTok) for sales in China and has achieved promising results. The Excellence bars benefited from growing interest in dark chocolate for own consumption, but Lindor products remain the key franchise. Their exclusive designs in the color red are particularly suitable as a gift in Chinese culture, as this color is associated with the positive symbolism of prosperity and happiness.
Brazil once again recorded an impressive 41.4% organic sales increase, driven by its own shops and, even more significantly, by retail partners. With the takeover of wholesale from our distributor, the Lindt & Sprüngli distribution network was expanded by 3,500 new points of sale, thus doubling the network. Lindt & Sprüngli’s market share has grown accordingly, especially as our product range perfectly covers the market trend towards the premium segment. Lindt & Sprüngli has also expanded its own retail network by opening seven additional Lindt Shops. Sales at Easter and Christmas were highly successful, with the success of the chocolate panettone in Brazil exceeding all expectations. The Lindor and Excellence key franchises are also the leading products in Brazil. The majority of sales are currently generated in metropolitan areas, which still offer a high level of potential for the further expansion of distribution.
The subsidiary in Japan achieved organic growth of 10.0% with its shops. We have further accelerated market development with the opening of twelve new Lindt Shops. As a result, we now cover all important regions in Japan from Hokkaido in the North to Okinawa in the South. In addition, online channels also contributed to the growth. Japanese consumers particularly appreciate international brands offering them special editions with local cultural roots. Following the success of Lindor’s Matcha filling beyond the borders of Japan, this year we enchanted chocolate lovers with the cherry blossom flavor Sakura, which is perfect for the spring festival of cherry trees in blossom.