Nestlé will cease production at its Diósgyőr factory by the end of 2026 after a sustained decline in demand for seasonal chocolate products, the company has announced.
The decision affects the plant that specialises exclusively in manufacturing hollow chocolate figures, including the familiar chocolate Santas sold in Hungary and exported to numerous countries around the world. The company said employees’ representatives were informed of the decision in early July.
Falling demand behind the closure
According to Nestlé Hungária, the Diósgyőr facility has experienced a significant drop in output in recent years as consumer demand for seasonal confectionery has weakened.
The factory produces only hollow chocolate figures, making it particularly vulnerable to changes in the seasonal sweets market. Although its products are distributed internationally, the decline in demand has made continued production at the site economically unviable.
The Diósgyőr operation accounts for less than 3% of Nestlé Hungária’s total revenue and only 0.4% of the company’s domestic manufacturing volume, highlighting its relatively small role within the group’s Hungarian operations.
Nestlé looking for investor to continue production
While preparing to wind down production, Nestlé has already begun negotiations over the sale of the factory and its future operation. The company said its priority is to preserve as many jobs as possible by transferring the facility to an investor willing to continue confectionery manufacturing at the site.
Nestlé described the discussions with potential investors as being at an advanced stage and said further details would be announced at a later date.
Chocolate Santas will remain on shop shelves
Consumers need not worry about the disappearance of Nestlé’s seasonal chocolate figures. The company confirmed that its hollow chocolate products will continue to be available in the future.
However, production will be transferred to an independent manufacturer operating under Nestlé’s strict quality standards, ensuring that the products retain the same specifications despite no longer being made at the Diósgyőr factory.
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Other Hungarian factories unaffected
Nestlé stressed that the closure does not affect its other Hungarian manufacturing sites. The company’s factories in Szerencs and Bük will continue operating and are expected to remain on a growth trajectory.
The closure therefore represents a restructuring of one specific product category rather than a broader withdrawal from manufacturing in Hungary, with Nestlé reaffirming its commitment to its remaining domestic production facilities.
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