Coronavirus

German confectionery industry calls for government help to survive coronavirus effect

By Anthony Myers contact

- Last updated on GMT

The German confectionery industry is the fourth largest category of the country's food industry and is home to the ISM sweets and snacks trade fair. Pic: ISM
The German confectionery industry is the fourth largest category of the country's food industry and is home to the ISM sweets and snacks trade fair. Pic: ISM

Related tags: coronavirus, Confectionery

The German confectionery industry has not been immune to the coronavirus pandemic with more than half of medium-sized companies reporting a decline in sales in the first quarter of 2020, according to research by the Federal Association of the German Confectionery Industry (BDSI).

The BDSI represents the economic interests of over 200 German confectionery companies and has called on the government to give priority to the domestic economy in order to secure jobs and investments in the country.

Recession

Like many countries, Germany has fallen into recession because of the pandemic, with Europe’s largest economy shrinking by 2.2% in the three months to the end of March.

For many manufacturers, important sales channels such as department stores, confectionery stores or confectionery stores have been closed since March and sales channels such as popular festivals, which are of great importance for some companies, will disappear indefinitely, said the BDSI.

It has revealed that 73% of confectionery and snack manufacturers said current business prospects are more difficult than in the previous year.

"Small and medium-sized companies will no longer be able to meet new regulatory requirements in the current situation​,” said Bastian Fassin, chairman of the BDSI. “What companies need now are relief from corporate taxation and a consequent reduction in bureaucracy. This also includes deferral of legislative projects that are not absolutely necessary​."

Exports

German confectionery and snack exports have also declined sharply, the BDSI revealed with 57% of companies registering a decline in orders. The survey showed that 84% of companies are experiencing human resource challenges from the corona pandemic - and childcare in particular is causing practical problems for companies.

Related topics: Industry Voices

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