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Food & Drink
Lindt exceeds expectations despite rise in cocoa prices
Swiss chocolatier, Lindt & Sprüngli, beat expectations despite passing higher cocoa prices to customers. The chocolate maker's organic sales for 2025 grew 12.4% to 5.92 billion Swiss francs (A$10.7 billion), which was helped along by a 19% price hike to pass off higher cocoa prices to customers. This was driven by a 15.3% rise in sales in Europe of 2.6 billion francs. The company also reported double-digit growth in key markets like Japan, Brazil, South Africa, China and Chile. Despite economic uncertainties, inflation, and weak consumer sentiment, sales still grew 8.9% in North America. "We delivered strong growth by focusing on our premium strategy and driving innovation,” Lindt CEO Adalbert Lechner said. “Consumers worldwide continue to seek quality and moments of indulgence, and we meet that demand with exceptional products." Cocoa prices soared in 2024 and 2025. Prices have dipped to three-year lows this year, but London cocoa dealers said last week they saw early signs of market stabilisation. The company’s EBIT grew 9.8% to 971 million francs, surpassing analyst expectations of 968.9 million francs, based on data compiled by LSEG. However, due to geopolitical uncertainties driven by the war in the Mi
Food & Drink
American spirit exports fall amid trade tensions
After a record year in 2024, exports of American spirits fell 9% year-over-year, driven by ongoing trade tensions. The American Distilled Spirits Exports 2025 Mid-Year Report showed key declines in all of the largest markets, including the European Union (EU), Canada, the UK and Japan. In 2024, the EU accounted for half of all exports, with these four markets amounting to 70% combined. Distilled Spirits Council of the United States (DISCUS) president and CEO, Chris Swonger, said persistent trade tensions have had immediate and adverse effects on spirit exports. “There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signalling a shift away from our great American spirits brands,” he said. Swonger said the largest shift was in Canada, where U.S. spirit exports declined by 85% and fell below US$10 billion in the second quarter of 2025. U.S. spirits sales plummeted by 68% in Canada during April 2025, while sales of Canadian and other imported spirits rose by 3.6%. While Canada removed its retaliatory tariff on U.S. spirits on 1 September, the majority of Provinces continue to ban Americans from their shelv
Food & Drink
Constellation Brands beats estimates amid sales downturn
Beer and wine conglomerate Constellation Brands beat estimates on earnings per share and revenue last quarter amid a downturn in sales, but reiterated its lowered full-year guidance. Comparable earnings per share were US$3.63, down 16% year-over-year but above LSEG estimates of $3.38. Revenue was $2.48 billion, falling 15% and beating estimates of $2.46 billion. “While we continue to navigate a challenging socioeconomic environment that has dampened consumer demand, our teams remain focused on executing against our strategic objectives, including driving distribution gains, disciplined innovation, and investing behind our brands,” said Constellation CEO Bill Newlands. “Against that backdrop, we are pleased to continue to lead the U.S. Beer industry in dollar share gains, drive continued outperformance versus the U.S. Wine industry in our Wine and Spirits Business, and consistently deliver against our capital allocation priorities.” Operating income was $886 million, falling 13% year-over-year. Constellation’s beer business reported a 7% decline in net sales to $2.35 billion, as well as a 12% drop in operating income and an 8.6% fall in shipments. This was due to economic headwinds depressing consumer demand, the com
Food & Drink
As young people drink less, are alcohol sales declining?
Young people worldwide are drinking less often and creating shifts within the alcohol sector. In Australia, drinking infrequently is growing long-term. According to the National Drug Strategy Household Survey 2022-2023, one in five 18-24 year olds are drinking less than once a month, a significant increase from 13.6% in 2001. The number of people aged between 18 and 24 who have never had a full glass of alcohol has also grown since 2001, doubling from 7.5% to 16.3%. However, it is rare for young drinkers to want to stop drinking altogether, with 40% of drinkers wanting to drink less compared to 6.5% who want to stop altogether in a recent survey. So, why are young people drinking less and what does it mean for the alcohol economy?Why have young people started drinking less?Founder of the Drinks Network, Hayden Wood, tells Azzet that young people are drinking less for both cultural and financial reasons. Culturally, he said, the priorities for Gen Z and Millennials have shifted. “The six o'clock swill or going out with your mates and drinking till five in the morning, those things aren't really high priorities in their social scene, and that's why drinking at large is lower,” he says. However, Wood said young p
Food & Drink
Treasury Wine Estates boosts profit, revenue
Treasury Wine Estates posted a 15.5% rise in underlying profit today due to the strong performance of its luxury portfolio. Australia’s largest winemaker reported A$470.6 million in net profit after tax for the fiscal year, which is higher than last year’s A$407.5 million, marking a 15.5% increase. Despite the growth, it missed Visible Alpha’s estimate of A$472.1 million. Revenue for the company grew 6.5% to A$2.99 billion year-over-year. These results were boosted by Treasury Wine’s luxury wine portfolio, which now accounts for 55% of revenues, as well as the re-establishment of Penfolds and other products in China, after Beijing lifted punitive tariffs. Treasury Wines also announced a final dividend of A$0.20, which is higher than the A$0.19 posted at the same time last year. The winemaker also announced a buyback of up to A$200 million, which is to be completed throughout fiscal 2026. At the time of writing, Treasury Wine Estates (ASX: TWE) stock was trading 0.63% higher than the previous close at A$7.63. Its market capitalisation was A$6.19 billion.

Food & Drink
Lindt melts on earnings miss as cocoa prices weigh
Lindt & Sprüngli fell to a multi-month low on Tuesday after the Swiss chocolate maker missed earnings expectations and trimmed its full-year profit margin outlook, citing the impact of persistently high cocoa prices. The company reported first-half earnings per share of CHF806.5, slightly below the 813 that analysts had forecast. While revenues beat expectations, coming in at 2.35 billion versus 2.3 billion expected, the company’s operating profit dropped 11% to 259.2 million, missing the 270.9 million anticipated. Chocolate manufacturers have been contending with sharply rising raw-material costs following a record surge in cocoa prices last year. Although prices have eased from their December 2024 peak of nearly $13,000 per metric ton, they remain historically elevated. Cocoa currently trades above $8,000 per ton - still more than double its level at the start of 2024. The price rally was driven by weather-related supply concerns in Ghana and Ivory Coast, the world’s largest cocoa producers. But the rally has since reversed as demand destruction sets in, with confectioners cutting back purchases in response to high input costs. Lindt has attempted to offset these pressures through price hikes, but they have fai
Food & Drink
Guinness parent firm's CEO steps down after two years
The chief executive officer of Guinness' parent company Diageo has stepped down effective immediately. Debra Crew is stepping down from the role by “mutual agreement” after just two years in the role, with chief financial officer Nik Jhangiani assuming the role on an interim basis. In a media release, Diageo chair John Manzoni thanked Crew and wished her all the best for the future. "On behalf of Diageo and the board, I would like to thank Debra for her contributions to Diageo, including steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility,” he said. Crew became CEO in June 2023 and during that time saw sales drop, while Guinness remained strong. Diageo’s stock has lost around 44% of its value since Crew became CEO and in May she announced a plan that would slash US$500 million in costs and potentially sell some brands over the next three years. In the six-month interim results to 31 December 2024, the company declared a 0.6% net sales decline to US$10.9 billion and an operating profit decline of 4.9%. During these six months, Guinness' net sales rose 13% compared to the six months to the end of 2023, while brands like Ciroc vod
Food & Drink
Wine makers brace for glut as grape crush intensifies
Despite the wine industry recently showing early signs of recovery, experts warn that the wine glut will worsen. The 2025 Australian wine crush was estimated to be around 1.57 million tonnes and worth an estimated A$1.13 billion. While this is a 14% increase from last year’s volume, it is still below the 10-year average of 1.71 million tonnes. Wine Australia’s 2025 National Vintage Report found the country’s wine grape crush in 2025 rebounded by 11% to 1.57 million tonnes. Shiraz saw the largest year-on-year increase of 23%, which Wine Australia market insights manager Peter Bailey said was at odds with consumer demand. "There hasn't really been a strong increase in demand for shiraz in the market, so I can only imagine that the increase was really due to wineries taking in some of that fruit that was available," he said. "For example, with the Riverland shiraz, the crush itself was up 21% on 2024 and the price was up 2%, but at $204 per tonne is still exceptionally low and probably not economically viable for many of those growers." In comparison, Chardonnay saw the biggest drop in volume by 13% with seasonal issues playing more of a role than supply and demand. With red wines leading the rebound, Bailey s
Food & Drink
Russian vodka production falls as consumption surges
Vodka production in Russia has plummeted, despite a surge in alcohol consumption. One of the reasons for production plummeting by 13% is a shortage of potatoes. Figures show that in the first half of 2025, potato prices rose by 52% while the overall harvest dropped by 12%. The drop in production is also driven by government policies. In 2025, no Russian vodka can enter the European Union. These laws were part of the EU’s fifth sanctions package passed in 2022, outlawing all Russian Spirits from the EU in response to Russia’s invasion of Ukraine. Despite this drop, Russians drank more in 2024 than at similar stages in the last eight years. Russian financial audit firm Finexpertisa reported in May that more people prefer rum, whiskey, brandy and tequila. Other beverages sales grew by 10.2% surpassing vodka consumption in some regions. However, vodka still reigns supreme throughout the country, with 60% of sales annually. Wine has managed to curb the trend in Russia, with production rising by 10.4%, with sparkling wines experiencing enhanced success as production grew by 17.8% year-on-year.