Mondelez and the chocolate identity crisis
There is chocolate, and there is fine chocolate. The difference between the two is as vast as the way to the moon and back. And then there are some chocolate brands that transcended geographical and cultural boundaries, finding their way into homes worldwide, becoming cherished parts of our collective memories and experiences. Their enduring popularity speaks to a quality and appeal that resonates across generations and cultures. These brands managed to cross beyond borders and cultures and make it to almost every home in the world. Until the cocoa industry and consequently the chocolate one stumbled upon one of the biggest problems of the chocolate business – the price. And here’s how we got to the chocolate identity crisis.
The price hasn’t been an issue at the times when chuao cocoa beans were used as a currency or when the Spanish Conquistas brought them to the royal afternoon tea breaks in Europe. It was the industrial era that raised questions about cocoa pricing, which had a significant effect on the chocolate industry. As consumption increased, major corporations found themselves prioritizing quantity over quality. The variety of cocoa used and the locations of certain manufacturing plants are key factors that influence the final price of chocolate.
This situation resulted in one of the most iconic chocolates, Toblerone, ceasing production in Switzerland. The reason? The production costs for the beloved milk and nougat-filled chocolate Matternhorn peaks made in Bern were quite high. Since acquiring Toblerone in 2012, Mondelez began implementing minor "cost-efficient enhancements" with the first one in 2016. Back then they increasing the gaps between the peaks and reducing the weight of the chocolate bars from 170 grams to 150 grams, and from 400 grams to 360 grams for Toblerone intended for sale on the the UK market. These adjustments were made to maintain the current retail price. Mondelez provided a clear explanation, stating that the rising production costs and the declining pound at that time necessitated the changes in weight and shape.It immediately gave birth to some funny memes like the one below published on Twitter (currently X).
In 2022 Mondelez announced that part of the famous chocolate Matternhorns will be moved to Slovakia due to lower manufacturing costs. According to the Switzerland’s Swissness Act enforced in 2017, the product is no more eligible to be called “Made in Switzerland”. Officially since the end of 2023, the Toblerone bars would have a random alpine peak on the package and a sign “established in Switzerland” rather than “made in Switzerland”. So one of the most famous Swiss chocolates in the world, produced since 1908 is..no longer Swiss for more than a year one.
However, that is not the only chocolate jewel Mondelez has, and that became too expensive to make. Salzburg Schokolade producing the famous Mozartkugels chocolates is about to close its plant in Austria until the end of December 2024. The mirabell kugels made by a special recipe in the birthtown of Wolgang Mozart since 1890 became too cost inefficient given the tripled price of cocoa. In June 2024 the company already presented its decision to the less than 100 people personnel of the plant. Mondelez still has the rights on the recipe and it can move the production elsewhere in Europe. That, however, has not been decided yet and we are about to see where the Mozart kugels will pop up next.
As a true fan of chocolate, it is sad to see these changes happening in the chocolate world where practical considerations takes upper hand. Then can we still claim that Toblerone is Swiss and Mozart kugels - Austrian? The geographical location is part of the heritage, along with the recipes and all other elements that made these products unique for the past few decades. And yet I find this as an amazing opportunity to innovate in such moments.
