Chocolate is in the spotlight at a show which takes place until November 3 in Gradignan, near Bordeaux, despite a tense context. The government has just proposed the establishment of a tax on processed sugars. An announcement that worries professionals, already weakened by a rise in raw material prices.
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Every year, in Gradignan, near Bordeaux, the chocolate fair brings its share of amateurs and gourmands. “Every evening in front of the television, it’s half a tablet each”, slips a visitor, wide-eyed at the stand in front of him. However, behind the general enthusiasm, the chocolatiers are giving the lie, but do not have the heart to laugh.
On their shoulders hangs the threat of a proposed surcharge on processed foods containing sugar. Among them, chocolate, which contains at least 20 to 50%. “It would be dramatic for many chocolatiers,” worries the craftsman Florent Lafaye. This proposal has already been mentioned in a report on October 16 by the Institut Montaigne which wishes “fight against junk food”. It has just been taken up by the Minister of Health, as part of the PLFSS debates for the financing of Social Security.
Chocolate, like sodas or industrial ready meals, would therefore be part of the taxed products. If the current VAT already varies from 5.5% to 20% depending on the quantity of sugar and the size of the products, this new tax would restrict already limited margins. A decision far from rejoicing the artisan chocolatiers who are barely recovering from their post-covid debt, and the increase in the cost of energy, sugar and cocoa. “If it could only be on Coke or something other than on our products. We can remove a little sugar from chocolate, but we cannot remove it everywhere,” whispers the Bordeaux chocolatier Stéphane Raynaud.
“We, milk chocolate, have to put sugar in it, we can’t do otherwise,” also plagues the artisan Florent Lafaye. “We would lose almost 15% of turnover.”
Chocolate has a pleasure side with aromas and we want to keep that.
Patrick Brossardartisan chocolatier
Dark chocolate contains on average 20% sugar, compared to 50% for white and milk chocolate.
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© G. Cuadrat France 3 Aquitaine
This potential surcharge adds to an already particularly difficult context for chocolate makers. “Already, it’s complicated because we had the Covid years, we got into debt with loans, says Patrick Brossard, artisan chocolatier. There, we are starting again, we have restarted the mechanics, but are they going to increase VAT knowing that the price of the bean per tonne has already jumped by 120%?
In six months, the price of cocoa beans has increased from 2,500 euros per tonne to more than 12,000 euros. A clear increase which has already weakened artisan chocolatiers. “We are forced to restrict costs since prices continue to rise, I already hire more, I have more workers, I only have one apprentice,” adds Patrick Brossard. So if they add a tax on it, it will be very complicated for businesses, for hiring and manufacturing.”
For chocolatiers, there is no question of passing this tax on the quality of the products. “We have passed on a little on the sale price, but we cannot raise prices indefinitely. We are craftsmen, the consumer expects quality from us and it will always be there,” insists Florent Lafaye. “We, the craftsmen, will always fight for quality”, agrees Patrick Brossard.
Consumers do not seem ready at the moment to give up their chocolates during the holidays.
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© G. Cuadrat France 3 Aquitaine
Despite prices which have already increased, chocolate lovers remain loyal. Between 5,000 and 6,000 visitors are expected over the two days of the show for this 14th edition. “The customer will always be king, says Patrick Brossard. For us chocolatiers, the goal is to make ourselves accessible to as many wallets as possible. For Christmas, it is better for customers to buy quality chocolate at the right price rather than buying industrial ones.”
Within the sector, however, hope persists. This Tuesday, October 29, Geneviève Darrieussecq backpedaled, ultimately limiting the measure only to sodas. She indicated that she wanted “convince” the food industry “rather than systematically wanting to tax them”. In 2023, the French consumed 12.5 kg of chocolate, on average per household.
