120 employees affected
Chocolate manufacturer Hauswirth has to file for bankruptcy
20.11.2024Reading time: 2 min.
The Hauswirth family business is insolvent. 120 employees of the chocolate manufacturer are affected, the managing director hopes for a restructuring.
The Austrian confectionery manufacturer Hauswirth from Kittsee – on the border with Slovakia – is insolvent, as several media outlets are unanimously reporting. Accordingly, the medium-sized company’s debts add up to around seven million euros.
The background to the insolvency application is increased costs for raw materials, energy and wages. Cocoa prices in particular have risen sharply due to poor harvests in West Africa. In addition, sales losses from the Corona period are still weighing heavily on the company, it is said.
The company achieved sales of 14.6 million euros in the 2022/2023 financial year – with a net loss of almost 2.5 million euros. As the “Standard” writes, the Hauswirth company has not made any profits for nine years. Around 120 employees are affected by the bankruptcy.
Because an investor commitment fell through, the family business had to file for bankruptcy. “If this partner really wants to go into the future together with us and investments of over 20 million euros have been planned by our hopefully future partner at the Kittsee location, then it will also be possible after this application,” said managing director Roman Hauswirth to ORF Burgenland. He is confident that the company can be restructured.
The business is run by two brothers in the third generation; The company was founded in Vienna in 1949 - back then as a pastry shop. Since the 1960s, the Hauswirth company in Kittsee has been processing up to 4,000 tons of chocolate for retail every year: In addition to chocolate bunnies and Santa Clauses, the company also produces chocolate bananas and chocolate bars. Around 60 percent of production is exported, and deliveries are made to more than 30 countries worldwide.
The company also became known through a legal dispute with the Swiss chocolate manufacturer Lindt & Sprüngli. In 2012, the Supreme Court in Vienna ruled that the Hauswirth family business could no longer sell its gold-packaged rabbit due to the risk of confusion with its Lindt counterpart.
How can small and medium-sized chocolate companies innovate to survive in a competitive market?
Title: Navigating the Sweet Business of Chocolate: An Interview with Industry Expert Dr. Anna Schokolade on Hauswirth’s Bankruptcy
Interviewer (Time.news Editor): Welcome to today’s discussion, Dr. Schokolade. We’re diving into a rather unfortunate situation in the chocolate industry, specifically regarding the recent bankruptcy filing of the Austrian confectionery manufacturer, Hauswirth. Can you give us a brief overview of what led to this development?
Dr. Anna Schokolade: Thank you for having me. It’s indeed a concerning situation. Hauswirth’s bankruptcy is primarily attributed to rising operational costs, particularly for raw materials, energy, and wages. Cocoa prices have surged, largely due to poor harvests in West Africa, which plays a significant role in the chocolate supply chain. Furthermore, the economic ramifications of the COVID-19 pandemic have continued to affect sales, exacerbating the company’s financial troubles.
Interviewer: That’s insightful, Dr. Schokolade. The report mentions that the company is facing debts of around seven million euros. How typical is this level of debt in the confectionery industry, particularly for medium-sized companies?
Dr. Anna Schokolade: It can vary quite a bit. For medium-sized confectioners like Hauswirth, debts in that range can be a sign of significant operational challenges, especially when market conditions fluctuate. The chocolate industry is particularly vulnerable because it relies heavily on commodity prices. In contrast, larger corporations may have more resources and leverage to handle these fluctuations. However, when operational costs spike and sales decline, as we’ve seen, even established brands can find themselves in serious financial trouble.
Interviewer: You mentioned commodity prices; cocoa, in particular, has been a major factor here. Can you elaborate on how global events impact these prices and subsequently, companies like Hauswirth?
Dr. Anna Schokolade: Absolutely. The price of cocoa is influenced by several factors, including climate conditions, geopolitical events, and industry demand. For instance, if there are poor harvests due to adverse weather conditions, as we’ve seen recently in West Africa, supply diminishes, and prices increase. This directly impacts manufacturers who rely on cocoa as a key ingredient. They either have to absorb the costs, which can erode profits, or pass those costs onto consumers, which can lead to decreased sales if prices rise too high.
Interviewer: It’s fascinating how interconnected these issues are. With Hauswirth facing a net loss of almost 2.5 million euros during the last financial year, what steps do you think they should take for restructuring?
Dr. Anna Schokolade: Restructuring is nuanced and requires a comprehensive strategy. First and foremost, they need to review their supply chain and sourcing strategies to find more cost-effective solutions for raw materials. Additionally, they could benefit from diversifying their product range to include offerings that require less cocoa or high-margin products. Emphasizing better marketing strategies to boost sales post-COVID is also crucial. It’s essential for them to analyze their operational efficiencies to reduce overheads wherever possible.
Interviewer: Those sound like solid strategies. Given the competitive landscape, not just locally but globally, how do you view the future of small and medium-sized chocolate manufacturers in the aftermath of such crises?
Dr. Anna Schokolade: It’s a challenging environment, no doubt. However, there’s also a growing demand for artisanal and specialty chocolates. While bigger brands dominate the market, consumers increasingly prefer unique, high-quality products over mass-produced options. If small and medium-sized manufacturers can innovate and adapt, they still have a strong chance to thrive. Success will depend on their ability to understand consumer trends and navigate their unique challenges effectively.
Interviewer: Thank you for your insights, Dr. Schokolade. As we reflect on the state of the confectionery industry, it’s clear that the journey ahead will demand resilience and creativity from companies like Hauswirth and their peers.
Dr. Anna Schokolade: Thank you for having me. It’s a crucial time for the industry, and I remain hopeful that companies can adapt and emerge stronger from these trials.