Lindt & Sprüngli delivered the sort of results investors have come to expect. Higher sales. Rising profits. Expanding margins. Even as cocoa prices remain near historic highs, the Swiss chocolatier has once again demonstrated an enviable ability to pass on costs without denting demand. Few food companies enjoy that kind of pricing power.
Then came a reminder that premium brands are valued on more than financial performance.
A lawsuit filed in Washington, D.C. alleges that Lindt misled consumers by promoting commitments to responsible sourcing and children's rights while allegedly benefiting from child labour in its cocoa supply chain in Ghana and Côte d'Ivoire.
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Lindt has strongly denied the allegations, saying it condemns all forms of child labour, operates supplier protocols and systematically investigates suspected cases, alongside broader programmes to improve traceability and conditions in cocoa-growing communities.
Legally, the case may prove manageable. The plaintiffs are seeking to halt allegedly misleading representations rather than financial damages. But the commercial implications deserve closer attention because they reach beyond the courtroom.