Damaged supply chains threaten the Easter business
The German confectionery industry is looking back on a difficult 2021, according to its own industry association.
As the Federal Association of the German Confectionery Industry e.V. (BDSI) reported on Tuesday, the industry’s performance in 2021 was stable in terms of sales and turnover. Production volume, for example, was just above the previous year’s level (+1.3 percent) and sales increased by 2.2 percent.
Tense economic situation
Nevertheless, there are apparently considerable problems. The BDSI writes that the statistical data situation obscures the view of the clearly tense economic situation in the industry. The reason given is partly large increase in raw material prices and other costs are causing particular problems for the more than 200 industrial manufacturers of confectionery and snack products in Germany. In addition, there are the difficulties of the effects of the Corona pandemic.
Burdens from damaged supply chains
The BDSI stresses that companies are currently experiencing huge cost increases across the board. This relates to the costs of raw materials, packaging, logistics and energy, in addition to occupational health and safety and personnel. According to the association, these burdens are unprecedented in this form.
Carsten Bernoth, chief executive of the BDSI, is concerned about the coming Easter business in his comments. About the current development Bernoth says: “The market for important raw materials has been emptied, supply chains that have existed for many years no longer function. This may also have consequences for the upcoming Easter business, for example that not all popular products such as chocolate bunnies can be produced as planned because important raw materials, packaging materials or freight capacities are not sufficiently available.”
Source: www.kloepfel-consulting.com