Wide-Moat Lindt Continues to See Robust Demand for Its High-End Chocolate

The substantial price premium that Lindt & Spruengli commands over mainstream brands—estimated to be around 100% in the United States and the United Kingdom 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 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.