Haribo’s Sweet Success: A Treat in a Sour Economy

Amidst economic challenges, the German candy giant, Haribo, is experiencing surprising growth. Despite raising prices and reducing package sizes, the company’s sales figures are soaring, proving that even in tough times, people crave a little sweetness.

Rising Sales and Strategic Shifts

Following a minor scandal involving cannabis found in their cola bottles, the brand’s public relations are navigating a smoother path. Handelsblatt‘s analysis reveals that Haribo has outperformed its previous year’s performance, despite a 14 percent price hike and package downsizing.

A primary catalyst for Haribo’s success is linked to the escalating expense of chocolate. High cocoa prices, influenced by criminal activities in West Africa, have steered consumers toward alternative sugary products. Haribo is presently experiencing double the growth in both volume and value compared to the general market, positioning it as an unexpected beneficiary of the current economic climate.

The Secret Ingredients of Success

Hans Riegel of Bonn (hence Haribo) started with gelatin pastilles made in a wash kitchen. His wife, Gertrud, supplied the sweets on her bike. The well-known gold bears represent a significant portion of Haribo’s product line, with approximately 160 million produced daily.

The third generation of the Riegel family is now steering the company. A cousin of the founder, Hans Guido Riegel, had a clash with the discount supermarket Lidl over pricing two years ago. Haribo resisted pressure to lower prices, resulting in their products disappearing from Lidl’s shelves for over a year. Ultimately, Lidl was compelled to yield, after they unsuccessfully tried to supplant Haribo’s treats with their own confectionery brand.

Globally, Haribo delivers its candies to more than 120 countries. In 2023, the global gummy candy market was valued at USD 23.9 billion (Statista).

Production and Global Reach

Haribo is the foremost global entity in the market of fruit gum treats, such as their well-known gold bears. These candies comprise a blend of gelatin, glucose syrup, and artificial colorings. The ingredients are not particularly sensitive to pricing fluctuations. With about 7,000 employees globally, including roughly 3,000 in Germany, Haribo also has a branch in Kontich, Belgium.

The famous slogan “Haribo makes children happy” was introduced by the Riegel family in 1935.

Despite economic headwinds, Haribo continues to innovate and adapt, securing its position in the global candy market. Their ability to navigate challenges while maintaining a beloved product line will be key to their continued success.