- Short-term job at a traditional brand: Halloren looking for new customers
Chocolate manufacturer Halloren seeks new customers after failed negotiations with a major client. "If I have to find new customers, then I will," explained CEO Darren Ehlert. In the past, some potential customers had to be turned down because production capacities had been reached. Now, there will be both national and international new talks. However, such talks can take several months as companies plan long-term.
Halloren from Halle (Saxony-Anhalt) claims to be Germany's oldest chocolate factory. The company sent a part of its workforce into short-time work due to failed price negotiations with a major German client. By the end of the year, 280 out of 400 employees will be affected. It's about 30 percent of working time.
According to media reports, the issue is differing price expectations with the discount store Lidl. Lidl declined to comment on business relationships and internal processes when asked. Halloren CEO Ehlert only confirmed that it was about a major customer with whom negotiations had failed recently.
Costs for chocolate have risen significantly
However, there are several reasons for this. The costs for chocolate as a raw material have recently increased by two to three times, said Ehlert. Added to this are higher costs for energy and processing. Therefore, it doesn't make sense to fill up the warehouses now in summer if there is no agreement with a large customer. "That wouldn't be economical," said Ehlert, "then I wouldn't even come close to covering my costs."
Halloren produces not only the famous Halloren balls, but also fruit caramels and filled chocolate pieces. Halloren produces at two locations in Halle and Delitzsch (Saxony).
To diversify their customer base, Halloren will discuss potential partnerships with both domestic and foreign companies, focusing on foodstuffs. With rising costs for chocolate raw materials, energy, and processing, it's crucial for Halloren to negotiate suitable prices for their foodstuffs offerings.
