I believe Switzerland is hugely popular not only for its banking system, watches, electronic or pharmaceutical industry but foremost for its chocolate. Even though this helvetic State in the middle of Europe does not have cocoa plantations nor any close proximity of any land growing cocoa beans, Switzerland has developed to a major chocolate producer and exporter. However, with the resent crisis some markets in the world reduced its turnover, others doubled in revenue.

The high franc, coupled with the steep price of cocoa, has not made it easier to sell a product that is already more expensive than the competition.

Cocoa prices reached a 33-year high in December and the International Cocoa Organization says there may be another “supply deficit” this year, keeping prices inflated.

This gives Swiss chocolate makers little room for price adjustments. “In such difficult economic times, we won’t systematically pass on the increases in production costs to consumers, but only occasionally,”

Lindt, which claims to be Switzerland’s largest producer in the premium segment, intends to combat the slump by investing more money in marketing and expanding its presence in markets like China, Japan and Russia.

But every cloud has a silver lining and in this case, it is the Gulf states, China and Australia.

Sales of Swiss chocolate to Saudi Arabia rose by 75 per cent last year, Schmid said. While this is only a drop in the bucket compared to Germany, Saudi Arabia is ranked 18th out of a total of 140 export markets.

However, the fate of the industry will rise or fall with the mood – and disposable income – of the Swiss consumer. The domestic market accounts for about a third of all Swiss chocolate sales.

Nicole Brändle, head of industry analysis at Credit Suisse, said that people in Switzerland are less willing to buy premium products like chocolate during an economic crisis. And as unemployment is expected to remain relatively high in 2010, Brändle said sales of premium foods are unlikely to improve this year.