Lindt & Sprüngli, a Swiss premium chocolate company, is being sued in the US by the consumer watchdog nonprofit International Rights Advocates. The lawsuit, filed on May 8, 2026, against Lindt's US and North American subsidiaries, alleges that the company markets its chocolate to consumers in Washington D.C. as responsibly and sustainably sourced, while its cocoa supply chains in Ghana and Côte d'Ivoire are claimed to involve severe forms of child labor and exploitative practices against low-paid cocoa farmers. This legal action challenges the validity of Lindt's corporate sustainability claims.
Lindt has stated its condemnation of child labor and its intention to investigate the allegations, relying on suppliers for sourcing verification. The company was previously flagged in early 2024 by Swiss TV and Radio news program Rundschau for prohibited child labor practices among Ghanaian cocoa farmers, whose produce allegedly ended up in Lindt products, despite the company having its own anti-child labor program. The potential financial impact of these allegations is still uncertain, but a Swiss business lawyer, Peter V Kunz, suggested that Lindt's board of directors could face liability questions at general meetings and potentially even liability lawsuits from abroad.
This legal challenge follows a mixed financial performance for Lindt. While the first half of 2023 saw strong organic sales growth of +10.1% to CHF 2.09 billion and a net income of CHF 204.5 million, the first half of 2026 showed slowed growth of 4.3%, down from 12.4% in fiscal year 2025. This slowdown is attributed to higher chocolate prices, implemented to offset rising cocoa costs, which led to decreased consumer demand. Profitability in the first half of 2026 held steady at CHF 260.2 million, with an 11.2% margin. Analysts from LD Investments also highlighted that material costs would likely increase materially in 2024, with cocoa prices exceeding $4,000 per metric ton.
