Christmas chocolate decorations and other confectionery will be more expensive this year due to the rapidly rising prices of input materials, packaging and energy. Olomouc chocolate factory Zora, which annually produces 1,200 tons of Christmas assortment, announces a price increase of at least ten percent depending on the type of chocolate product.
Jan Fišer, director of the Zora Olomouc plant, told journalists on Thursday. Olomouc enterprise Zora belongs to the food company Nestlé Česko. Last year, one million Orion Christmas collections produced by the Zora company were consumed in the Czech Republic and Slovakia.
The Zora plant has been struggling with rising production costs for several months. For example, according to Fischer, the price of packaging has increased by 20 to 30 percent, milk by 50 percent, and electricity is also significantly more expensive. This year, the Olomouc factory will pay 40 million crowns for its delivery, and next year it will be 200 million crowns. The company has reduced production costs in recent years thanks to production automation and cost-saving measures, but input prices are now rising significantly. “We are no longer able to cover them and we have to reflect this in the prices of the products,” said Fišer.
The increase in prices for individual types of chocolate products varies according to their composition and the packaging used. “It’s a product of a product,” pointed out Fišer, according to whom energy prices will continue to rise next year. However, the rise in the prices of raw materials needed for the production of chocolate confectionery should not be as significant as this year. Fišer pointed out that manufacturers will probably have a problem with the availability of some raw materials and long delivery times.
The Olomouc company Zora is now finishing the production of Christmas chocolate collections and figurines, which it started at the end of May. In September, retail chains will begin to deliver the Orion Christmas assortment to their warehouses. New this year are milk-filled figurines with lentils, with which people will be able to decorate their Christmas trees.
More than 33,000 tons of chocolate confections roll off the production line at the Zora plant annually, of which 11,000 tons are Orion chocolate bars and 4,100 tons of products are Margot bars. The Olomouc enterprise produces 3,200 tons of Student Seal chocolates annually. In addition to the production of finished products, the plant prepares another 14,000 tons of chocolate mass.
More than half of all products manufactured at the Zora plant are exported abroad, under various brands they are sold in, for example, England, France, Spain, Saudi Arabia or Kuwait. The Olomouc enterprise employs seven hundred workers.
Last year, Nestlé Česko increased its profit by 20 percent year-on-year, to approximately 562 million crowns. The company’s sales rose by more than a billion to around 12.5 billion crowns. At the Zora Olomouc and Sfinx plants in Holešov last year, the company produced confections for almost 5.5 billion crowns and exported products worth almost 2 billion crowns abroad. The company’s portfolio includes, for example, the brands Orion, Margot, Kofila and Bon Pari. The Nestlé Group is the largest producer of food and beverages in the world. It does business in 187 countries around the world and employs over 270,000 employees.
Source: Tyden.cz by www.tyden.cz.
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