In announcing a price hike this year, Lotus Bakeries, maker of Speculoos biscuits, cites increased raw material costs and inflation pressures in essentially saying that’s the way the cookie crumbles.
Lotus reported strong financial performance in 2021 revenues of €13 billion, a 13% increase from a year earlier. The growth was spurred by the growing popularity of Lotus products internationally, the company stated in a release Monday.
However, even the growth in popularity overseas can’t overcome the rising prices of what makes Lotus cookies and other products so tasty as the company aims to chip away at the market share of global cookie industry leaders.
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“2022 looks set to be challenging. As a manufacturer, we’re faced with unprecedented increases in costs and at the same time, we want to continue to offer consumers their favourite cookies or healthy snacks at an affordable price. For this reason, we aim for a fair price increase for our products. In the end, this is crucial if we are to meet our targets for margins and – above all – continue to invest in the growth of our brands,” said a statement from Jan Boone, Lotus Bakeries chief executive.
Jan Boone, chief executive of Lotus Bakeries
Lotus recorded double-digit growth in such large consumer markets as the United States, the United Kingdom, China, Korea, Germany, Spain, Italy, Canada and Australia. An example of Lotus growth is the relatively new Biscoff Sandwich Cookie. Launched in 2020 in four countries, the product is now available in 25 countries and cited by Lotus as being a major booster for the company’s growth in each country.
The sandwich cookie’s popularity spurred the creation of a new production line at the company’s Lembeke factory to become operational later this year. Lotus is also adding a second dough preparation room and intends to double its United States capacity by adding two new Lotus Biscoff production lines. All told, Lotus expects to spend €100 million this year to expand production.
