Cocoa Inflation and Soft Seasonal Demand Test Lindt's Structurally Strong Franchise

The substantial price premium that Lindt & Sprüngli commands over mainstream brands—estimated to be close to 100% in the United States and around 25% in large European markets—together with its leading market share in key regions, signals the presence of durable competitive advantages from brand intangible assets in the form of brand strength. This has led us to award Lindt a Wide Morningstar Economic Moat Rating, supported by the company’s ability to maintain its premium positioning over the long term by pricing in line with inflation and peers, and its focus on a segment of the chocolate market that has experienced somewhat stable competition and is largely shielded from the threat of private label.