Mondelēz set to invest US$79M in its Switzerland Toblerone factory

SWITZERLAND – Mondelēz International has announced plans to invest approximately US$79M (around 65 million Swiss Francs) in its Toblerone manufacturing facility located in Bern, Switzerland.

As the second-largest player in the US$134B global chocolate market, Mondelēz emphasizes that this investment highlights Toblerone’s ambitions in the premium segment and aims to enhance its global recognition, uniqueness, and leadership in world travel retail.

While cocoa prices have recently decreased after reaching a record high in 2024, they remain elevated compared to historical averages.

This has led to increased costs and a decrease in consumer demand for certain chocolate products. However, despite the high cocoa prices and ongoing tariff uncertainties, Mondelēz remains confident in consumers’ enduring affection for chocolate.

The Bern plant, which currently produces 4 million Toblerone products daily, will also receive a state-of-the-art production line to expand capacity in response to growing demand for premium chocolate.

Additionally, the facility will undergo upgrades to its chocolate and nougat-making processes, as well as enhancements to site infrastructure and logistics.

Mondelēz has described this investment as one of the most significant moves in its chocolate production network in Europe over the past decade.

The company aims to become the number one player in chocolate by 2030, with the 117-year-old Toblerone brand playing a pivotal role in achieving this objective.

Dirk Van De Put, CEO of Mondelēz, mentioned in February that he believes consumers’ passion for chocolate, along with the strength of the company’s product lineup—which includes Cadbury and Milka—will help navigate this period of market volatility.

Chocolate constitutes approximately one-third of Mondelēz’s business, with sales expected to reach US$11.2B in 2024. Despite a slight decline in volumes, the resilience of chocolate remains evident, even amid price increases of about 10%.

“We still have a strong belief in chocolate,” Van De Put remarked at the Consumer Analyst Group of New York’s annual meeting in Florida. He added that Mondelēz intends to emerge from the current cocoa volatility stronger as a company.

Toblerone isn’t the only brand under Mondelēz making strides in the premium chocolate sector. In 2024, Mondelēz partnered with Lotus Bakeries to create chocolate products that combine the unique taste and texture of Biscoff with the Cadbury, Milka, and other chocolate brands.

The two companies have already launched a Cadbury chocolate bar featuring small pieces of Biscoff, with a Milka product expected to follow later this year.

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