Mondelez International has announced plans to invest SFr65m ($77m) in its historic Toblerone factory in Bern, Switzerland.
The investment will see a state-of-the-art production line go into operation in the third quarter. Mondelez hopes to meet a growing demand for premium chocolate. It will also invest to improve its chocolate and nougat making facility, upgrading the site's infrastructure and logistics.
Mondelez calls the investment one of its biggest in European chocolate in the last decade.
Bern facility director Tim Spickenbaum said the site is already producing four million Toblerone products on average per day. "We are delighted about the planned modernizations and investments, which will not only enhance manufacturing capacity but also solidify Bern's position as the home and heart of the triangular brand icon,” he added.
Iain Livingston, president of Toblerone & World Travel Retail, said the site in Bern is "where we proudly bring our brand and chocolate expertise around the world" and "is key to the brand's growth ambition to win in the premium segment.”
The confectionery giant considers Bern "the home and heart" of Toblerone. The chocolate brand was founded in the city in 1908 and 90% of Toblerone is made there today. In a nod to Toblerone's Swiss heritage, Mondelez will soon print a Swiss flag on its packaging.
Alongside its traditional offering, Mondelez has been busy this year with original product launches through a licensing deal with Lotus Bakeries. The snack groups launched a Cadbury Dairy Milk Biscoff tablet in the UK and Ireland in March.
The company also announced an almost 74m zlotys ($18m) investment for chocolate production in Poland in December.
That said, market conditions in chocolate remain challenging. In February, Mondelez chief executive officer Dirk Van de Put predicted price rises of up to 50% for chocolate on the back of high cocoa prices.
In February, the Cadbury and Milka chocolate brand owner reported results for the 2024 financial year. While reported and organic growth were up 1.2% and 4.3%, respectively, at $36.4bn, volumes were down one percentage point and Mondelez took pricing of 5.3 percentage points over the 12 months.
