Lindt & Sprüngli

Lindt & Sprüngli's CHF 5.5 billion revenue (2024, 7.8% organic growth) demonstrates costly signaling in commodity markets: the company charges $15-30/kg retail when cocoa/milk/sugar ingredients trade globally at similar costs to mass-market rivals ($5-8/kg). The 178-year-old Swiss chocolatier pioneered conching (1879) - a refining process creating smooth texture that became synonymous with premium positioning, but ingredient costs barely differ from Hershey or Mars. This is credible commitment through brand heritage: Lindt sacrifices volume (produces millions of kg vs. billions for Mars) to maintain scarcity perception. When cocoa prices surged to $3,500/ton (2024), the company passed through 15.8% price increases (H1 2025) without demand destruction - low price elasticity in premium retail. The 590-store global network (up from 530 in H1 2024) including Piccadilly Circus flagship demonstrates investment in costly touchpoints (Roger Federer cutting ribbon) that reinforce luxury positioning. Revenue grew 11.2% in H1 2025 to CHF 2.35 billion with 16.2% EBIT margin (2024), targeting 7-9% organic growth (2025) and 20-40 basis points margin improvement. Geographic expansion (Brazil, Japan, China showing double-digit growth) and innovation (Lindt Dubai Style Chocolate targeting younger consumers) prove that in commodity categories, premium positioning captures value through perception management rather than input differentiation. The Shanghai logistics hub (opened July 2024) and Stratham USA capacity expansion demonstrate scaling production while maintaining scarcity illusion - a paradox only brand strength resolves.