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Article Excerpt
[ILLUSTRATION OMITTED]
They make a formidable duo, Ernst Tanner and Thomas Linemayr. As chairman and ceo, Tanner took a sleepy Lindt and Sprungli AG that was doing business primarily in three European countries in 1994 and transformed it into a global multinational, doing more than $2.5 billion in 100 markets.
Upon joining Lindt USA in 1999, Linemayr posted 10 solid years of high-paced growth for the company, making it the U.S. premium chocolate category leader with a market share of nearly 30%.
Formidable numbers, indeed. But when asked whether they were surprised at how quickly and easily success had come, both shook with laugher. Not so quickly, nor so easily. Tanner quickly pointed to his gray hair. Establishing Lindt USA as the dominant premium chocolate maker in the world's largest confectionery market didn't come without significant investment and risk-taking.
"As a company [Lindt & Sprungli AG], we were wrestling with the idea of whether we should stay in the United States or focus on Europe," he says. Sales back then in 1996 totaled $20 million, Tanner points out. And as far as the premium chocolate category goes, it represented less than 1% of the total chocolate market, the bulk coming from specialty stores.
By installing Linemayr as head of Lindt USA in 1999 and committing serious monies to developing the segment, everything from opening up more than 100 retail stores to spending well in excess of $100 million on its production facility in Stratham, N.H., Tanner set in motion the growth strategy. Under Linemayr's direction, Lindt USA not only expanded the premium category, it came to dominate it.
Currently, the premium chocolate category represents 11.5% of the total chocolate market, slightly more than $1.8 billion. Lindt USA commands about a 30% share of that total. Total sales for Lindt USA and Ghirardelli topped $500 million last year. Candy Industry estimates the breakout between subsidiaries at $315 million for Lindt USA and $185 for Ghirardelli.
Moreover, since 2000, Lindt USA has consistently put up double-digit sales gains, Linemayr affirms.
"As the leader in the category, we're responsible for category growth," he adds.
And despite the recession having a dampening effect on confectionery sales, including the premium category, Linemayr foresees another double-digit posting for 2009....
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