DAR-VIDA is growing strongly and sustainably
DAR-VIDA, HUG AG's healthy brand, brought the company a healthy growth in 2023. The pilot project "Sustainable whole grain groats for DAR-VIDA" was successful and will be expanded further. HUG was also able to gain market share in the catering business. Investments in the new Tartelette production line are necessary to meet the high demand for Tartelettes worldwide. The two Co-directors are optimistic about 2024.
The HUG family generated a turnover of CHF 126 million in 2023. This corresponds to a growth of 2.3% and lies below expectations. The DAR-VIDA brand recorded a significant increase of 10%. The new appearance in packaging and communication as well as powerful new products led to this growth. "DAR-VIDA reflects the zeitgeist of healthy snacking and is now available almost everywhere. We were able to gain market share with DAR-VIDA and consolidate our status as the original," says Anna Hug, Co-director Markets at HUG.
Biscuit market stagnating in terms of volume
In the Swiss biscuit market, HUG is faced with a stagnating market in terms of volume. Although HUG was able to increase biscuit turnovers slightly, this is mainly due to price increases. In view of rising inflation, the retail channels have focussed on own brands and imported products. The Wernli brand was promoted with the broad-based TV campaign "Love sharing Wernli".
Strong growth in Food Service
HUG's catering business “Food Service” once again achieved a record turnover, both in Switzerland and in export. Especially Tartelettes and frozen products are in high demand due to the shortage of skilled staff in kitchens and bakeries. "We now generate almost 40% of our turnover in Food Service, and we want to grow further in the coming years," says Andreas Hug, Chairman of the HUG Administrative Board. To achieve this, HUG is also investing in the modernisation of a Tartelettes production line in 2024. The total volume for this investment will amount to CHF 11 million.
Pilot project "Sustainable wholemeal groats for DAR-VIDA"
As with all biscuits produced by HUG, the raw materials for the DAR-VIDA crackers are sourced from Switzerland, wherever possible. HUG is now going one step further together with Knecht Mühle in Leibstadt. The cultivation of sustainable wheat groats was tested in a pilot project in 2023. This involves avoiding pesticides in the cultivation of wheat where possible and appropriate, while at the same time fostering biodiversity using the "wide-row method". The test was successful and, thanks partly to an additional premium paid by HUG to the farmers, a further ten farmers from the canton of Aargau were recruited. "The project is a pragmatic approach which has a big impact on cultivation. In the medium term, we want to have grown sustainably 80% of all the wheat groats for DAR-VIDA," says Marianne Wüthrich Gross, Co-director Operations.
HUG is an attractive employer
HUG was honoured with the "Top Employer" seal of quality by the Swiss Employer Award in January 2024. With the progressive co-management model, Anna Hug and Marianne Wüthrich Gross demonstrate part-time working in management positions. Last year's employee survey shows that employee satisfaction at HUG is very high. This is mainly because employees are involved, flexible working is made possible and internal and external development is supported with "HUG Campus". In addition, HUG has abolished management levels and introduced a new management model: More competences, more responsibility and active collaboration in topic-related areas of activity.
Confident outlook
HUG will continue to face cost increases in 2024, both in the procurement of raw materials such as sugar and chocolate as well as in personnel costs. Electricity costs will also remain significantly higher than in 2022. Despite this, the two Co-directors are confident about 2024. This is expressed succinctly by the motto for the strategy period up to the 150th anniversary in 2027: "Let’s m/bake it".
The media release and other documents are available for download via the following link:
www.wearepepper.ch/projekte/hug/medienorientierung/januar24
The HUG Family
HUG AG is a family firm employing some 440 people at its sites in Malters and Willisau. Founded in Lucerne in 1877, HUG was originally a bakery; today it is run by the fifth generation of the family. “We really put our hearts into cooking your everyday moments of pleasure,” say Anna Hug and Marianne Wüthrich Gross, who run the company jointly on the following three principles: humanity, entrepreneurship and care. In short, typically HUG. Through its four brands - HUG, Wernli, DAR-VIDA and HUG Food Service - the company offers a wide range of products: from traditional HUG Swiss biscuits such as Willisauer Rings, to Wernli specialities like Choco Petit Beurre, not forgetting DAR-VIDA crackers. In addition to retail products, HUG also offers a wide range of high-quality bakery products such as HUG Tartelettes for the catering industry. These four brands stand for the core values of pleasure, naturalness and authenticity.
