German Confectionery Industry Seeks Help During Pandemic

The Federal Association of the German Confectionery Industry (BDSI) revealed in a recent study that more than half of medium-sized companies have reported a decline in sales in the first quarter of 2020.

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.

Germany’s economy has reportedly shrunk by 2.2% in the three months to the end of March.

For many manufacturers, important retail sales channels 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.

The research 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.”

German confectionery and snack exports have also declined sharply with 57% of companies registering a decline in orders. The survey showed that 84% of companies are experiencing human resource challenges from the COVID-19 pandemic – and childcare in particular is causing practical problems for companies.