Climate Change Drives Unstoppable Cocoa Cost Hikes: German Chocolate Giant Cuts 10% of Workforce
German chocolate brand Ritter Sport announced a 10% cut in administrative jobs, marking its first major layoff in over a century. The decision stems from soaring cocoa prices driven by climate change. The company urges cross-industry investments to help farmers adapt.
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- 📰 Published: April 24, 2026 at 20:16
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(Central News Agency, Reporter Lin Shang-ying, Berlin, 24th) German national chocolate brand Ritter Sport has announced a 10% reduction in administrative positions, marking its first large-scale layoff in its century-long history. With climate change causing cocoa prices and production costs to soar, Ritter Sport is appealing to international industries, governments, and academia to help transition agriculture and cope with climate pressure, all while ensuring farmers do not bear the brunt of price freezes.
Well-known in Taiwan as well, the German chocolate brand Ritter Sport recently announced layoffs. According to the German grocery paper "Lebensmittel Zeitung", this is the first major job cut since the veteran chocolate maker was founded in 1912.
Ritter Sport employs about 1,900 people globally, of which about 1,000 work at its headquarters and production base in Waldenbuch, southwestern Germany. The targeted cuts affect nearly 100 administrative staff locally.
CEO Andreas Ronken stated in an interview with the business daily "Handelsblatt" that this was a difficult decision, but adjustments had to be made to ensure the company's stable operation in the future.
Discussing the reasons for the downsizing, Ronken said that the rising costs of energy, packaging, and cocoa have led to significant losses for Ritter Sport. Even though the company's revenue increased last year, it could hardly offset the massive pressure from rising chocolate manufacturing costs.
According to Handelsblatt, affected by climate change, cocoa prices have climbed dramatically in recent years, jumping from about $2,400 per metric ton in 2022 to over $10,000 (about NT$310,000) at the beginning of 2025. Although prices have recently retreated slightly, they remain much higher than in the past.
The rising cost of chocolate manufacturing is also reflected on the consumer side. Market research firm Circana noted last year that behind the impressive revenue of German gummy bear brand Haribo is the rising price of chocolate on the market; consumers are turning to pectin and licorice candies, which have stable and cheaper prices, as dessert alternatives.
German coffee giant Tchibo pointed out in an article published in Der Spiegel in early April about their alliance with Ritter Sport that climate change is putting immense pressure on raw coffee and cocoa bean producing regions. By 2050, at least half of the global producing areas will be unsuitable for cultivation. A significant portion of the world's 12.5 million coffee growers are currently fighting for survival.
However, German retailers continue to adopt low-price strategies to attract consumers. Hauke Will, Ritter Sport's head of agricultural production, stated, "The terminal price war is causing severe problems for us." This not only compresses the profits of upstream farmers and manufacturers but also affects environmental sustainability.
To combat low-price competition, Ritter Sport has partnered with Tchibo to form an alliance, calling on governments and industries to increase investments to help farmers cultivate coffee and cocoa beans that are more resilient to climate change, and to introduce modern planting technologies to improve production methods, thereby increasing agricultural yield and stability.
Regarding the laid-off headquarters employees, Ritter Sport stated that it has formulated compensation packages and outplacement mechanisms to help affected employees find new job opportunities. (Editor: Hsieh Yi-hsuan) 1150424
Well-known in Taiwan as well, the German chocolate brand Ritter Sport recently announced layoffs. According to the German grocery paper "Lebensmittel Zeitung", this is the first major job cut since the veteran chocolate maker was founded in 1912.
Ritter Sport employs about 1,900 people globally, of which about 1,000 work at its headquarters and production base in Waldenbuch, southwestern Germany. The targeted cuts affect nearly 100 administrative staff locally.
CEO Andreas Ronken stated in an interview with the business daily "Handelsblatt" that this was a difficult decision, but adjustments had to be made to ensure the company's stable operation in the future.
Discussing the reasons for the downsizing, Ronken said that the rising costs of energy, packaging, and cocoa have led to significant losses for Ritter Sport. Even though the company's revenue increased last year, it could hardly offset the massive pressure from rising chocolate manufacturing costs.
According to Handelsblatt, affected by climate change, cocoa prices have climbed dramatically in recent years, jumping from about $2,400 per metric ton in 2022 to over $10,000 (about NT$310,000) at the beginning of 2025. Although prices have recently retreated slightly, they remain much higher than in the past.
The rising cost of chocolate manufacturing is also reflected on the consumer side. Market research firm Circana noted last year that behind the impressive revenue of German gummy bear brand Haribo is the rising price of chocolate on the market; consumers are turning to pectin and licorice candies, which have stable and cheaper prices, as dessert alternatives.
German coffee giant Tchibo pointed out in an article published in Der Spiegel in early April about their alliance with Ritter Sport that climate change is putting immense pressure on raw coffee and cocoa bean producing regions. By 2050, at least half of the global producing areas will be unsuitable for cultivation. A significant portion of the world's 12.5 million coffee growers are currently fighting for survival.
However, German retailers continue to adopt low-price strategies to attract consumers. Hauke Will, Ritter Sport's head of agricultural production, stated, "The terminal price war is causing severe problems for us." This not only compresses the profits of upstream farmers and manufacturers but also affects environmental sustainability.
To combat low-price competition, Ritter Sport has partnered with Tchibo to form an alliance, calling on governments and industries to increase investments to help farmers cultivate coffee and cocoa beans that are more resilient to climate change, and to introduce modern planting technologies to improve production methods, thereby increasing agricultural yield and stability.
Regarding the laid-off headquarters employees, Ritter Sport stated that it has formulated compensation packages and outplacement mechanisms to help affected employees find new job opportunities. (Editor: Hsieh Yi-hsuan) 1150424