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Chocolate figures on a production table in a Bavarian factory

Sweet farewell: Iconic German chocolate brand to shut down Bavarian factory

Isabelle Hoffmann
4 Min Read
Photo by Serghei Savchiuc Unsplash

A well-known name in German confectionery is facing a bitter ending: the traditional chocolate producer Riegelein is set to close its main plant in Cadolzburg, Bavaria.

The factory, whose chocolate figures and seasonal treats have been a staple in Christmas stockings and Easter baskets for decades, will shut down by April 2026, according to the company. Around 200 employees are affected.

Dieter Schäfer, spokesperson for the Gubor Group, which owns Riegelein, confirmed to BILD: “The factory in Cadolzburg will close, probably in April 2026.”

Falling demand and rising costs

According to company officials, demand for Riegelein chocolate has sharply declined in recent years, even though the brand remains a household name in German supermarkets such as Edeka, Rewe and Famila.

At the same time, production costs — particularly for energy and raw materials — have risen significantly, squeezing profit margins.

Production volumes at Cadolzburg have fallen steadily over the past four years, leading to idle periods and reduced capacity.

Company director Claus Cersovsky explained:

“Rising prices for raw materials and energy, growing international competition, and the necessary price increases for our customers have led to a significant drop in orders.”

He added that the company had to “adapt production to market realities,” but the plant eventually became unprofitable.

Corporate mergers couldn’t save the brand

The Riegelein family had already tried to adapt to tougher market conditions. In 2019, the company merged with its former competitor Gubor/Rübezahl, forming the Gubor Group, which now employs around 1,700 people.

More recently, in May 2025, the group joined forces with the Polish confectionery producer Colian, expanding its European footprint.

Despite these consolidations, high costs and falling demand ultimately forced management to make tough decisions.

Impact on employees and operations

The company says it plans to relocate production to other Gubor facilities in Germany and possibly abroad.

The Riegelein logistics center in Forchheim will also close when its lease expires in June 2027.

While it’s not yet clear how many workers will lose their jobs, Gubor has announced that it will negotiate openly with the works council about a social compensation plan.

Administrative departments such as procurement, marketing, sales and IT are expected to remain in Cadolzburg.

A 70-year Bavarian family legacy

Riegelein was founded in 1953 by Hans Riegelein (†86), who started the company out of his father’s bakery together with his wife.

Over seven decades, they turned it into one of Europe’s leading chocolate producers, exporting to more than 50 countries.

Today, the Gubor Group — which includes Riegelein — produces around 40,000 tonnes of sweets annually and reports €350 million in revenue.

It operates four other factories in Germany and one in Tuchola, Poland.

Although some reports suggest that production could shift primarily to Poland, spokesperson Schäfer told BILD that “no final decision has been made.”

Bittersweet goodbye to a Bavarian classic

The closure marks the end of a proud Bavarian family business that once symbolized the sweetness of German craftsmanship.

As energy prices and global competition reshape the confectionery market, the story of Riegelein stands as another reminder of how tradition struggles to survive in a globalized economy.

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