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FOOD AND DRINK

Why is Switzerland’s famous Matterhorn mountain disappearing from Toblerone bars?

Switzerland's iconic Matterhorn mountain is gradually disappearing from Toblerone's packaging to comply with "Swissness" laws. Here's what you need to know.

The Toblerone bar placed against the Matterhorn mountain in Switzerland.
The Toblerone bar placed against the Matterhorn mountain in Switzerland. Photo by Morgan Thompson on Unsplash

What’s happening?

The Alpine mountain motif, which is well known for its place on the wrapper of the world-famous chocolate bar Toberlone will melt away once the company’s new plant in Slovakia opens, it was announced this week.

Established in 1908 in the Tobler family factory, the instantly-recognisable triangular chocolate has so far been produced exclusively in Bern, the Alpine nation’s capital.

But Toblerone is opening its new plant in Bratislava in the third quarter (Q3) of 2023 “to meet increased global demand”, said the brand’s owner, US food giant Mondelez International.

That meant Toblerone had to replace “of Switzerland” on its packaging, which was revealed when the new Slovakia production line was announced in June
last year.

READ ALSO: When is something from Switzerland officially considered Swiss?

But along with “established in Switzerland” now appearing on the pack, the pyramid-shaped Matterhorn, a cherished national icon, is being replaced with a
generic triangular mountain, sparking heated debate in Switzerland.

“We have to adapt our packaging to the Swissness legislation,” a Mondelez spokeswoman told AFP.

“The pack redesign introduces a modernised and streamlined mountain logo, in line with the geometric and ‘be more triangle’ aesthetic.”

The Matterhorn image will no longer be featured on Toblerone chocolate. Image by Hans from Pixabay

However, the bear of Bern, symbol of the city, will still be hidden in the new mountain’s contours.

“More and more people will see the brand’s exciting new visual identity and packaging design, as it started to be rolled out across markets from Q3 2022,” the spokeswoman said.

Toblerone produces seven billion chocolate bars a year, with 97 percent exported to 120 countries.

They are ubiquitous at airport duty-free shops around the world, where one bar is sold every two seconds, according to Mondelez.

The name is a play on words from Tobler and “torrone” – the Italian name for honey-almond nougat.

What’s the reaction?

The Tribune de Geneve newspaper debated whether it was “commercial suicide” for Toblerone.

But Michael Kamm, owner of the communications agency Trio, said the brand was “very well established aside from its logo”, telling the daily newspaper that its shape, colours and letters were “emblematic and recognisable among a thousand”.

Fribourg University marketing professor Olivier Furrer added: “The Matterhorn is especially important for Swiss consumers, because it is a matter of pride.

“We may be offended by this change. But foreigners might not even notice.”

The news comes after Swiss pride took another hit last week.

A US appeals court ruled Friday that in the United States, the word “gruyere” is a common label for cheese and cannot be reserved just for the kind made originally in France or Switzerland, where the medieval town of Gruyeres is located.

“Cheese and chocolate are among the flagship products of the Swiss food industry,” Olivier Perrin wrote in an opinion piece published Monday by the Le Temps newspaper.

“It is therefore, for many, a shock” to find that Gruyere “can now be anything” and Toblerone is dropping the Matterhorn. Re-ouch.”

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SWITZERLAND EXPLAINED

Why German-speaking Swiss cantons will pay money to French-speaking ones

Nearly every one of Switzerland’s French-speaking cantons will be receiving financial support from German-speaking cantons in 2025. How does this happen, and why is there such a wealth disparity between certain parts of Switzerland?

Why German-speaking Swiss cantons will pay money to French-speaking ones

As outlined in annual data published by the Federal Finance Administration this week, six of the seven cantons where French is recognized as an official language will be receiving support from German-speaking cantons in 2025.

Geneva will be the sole exception – in fact, it’s contributing. 

Overall, 18 out of Switzerland’s 26 cantons will receive money – including many German speaking cantons (see map below) – and 8 will pay out to other cantons. In all the total transfer between cantons next year will add up to 6.2 billion Swiss francs.

Valais will be receiving the most financial support per number of residents – 2,469 francs per capita, followed by Jura at 2,229 francs and Neuchâtel at 1,818 francs per capita. 

The three cantons contributing the most – Zug (CHF 3,321 per capita), Schwyz (CHF 1,520) and Nidwalden (CHF 1,081) all recognise German as an official language. The other contributing cantons are Zurich, Geneva, Basel-CIty, Obwalden and Shaffhausen. 

Image: Federal Finance Administration

Why are cantons redistributing funds?

For decades each of Switzerland’s 26 cantons was able to hold onto the entirety of the taxes levied at the cantonal level, under the country’s devolved administration. 

This changed in 2008 when the Federal Council introduced the national financial equalisation mechanism, which had two purposes – reducing inequality in wealth between the country’s cantons, and ensuring that each could fulfil their responsibilities at the same level. 

Essentially some cantons (see below) take in far more in tax receipts than others and the mechanism is aimed at reducing the inequality that creates.

The redistribution also allows cantons to pay for public services which are harder to provide in certain parts of Switzerland than others, due to geographical challenges such as the Alps.

Using a complicated formula that has undergone several revisions, the cantons giving and taking funds are identified, before funds are distributed each year. 

READ MORE: EXPLAINED: Why Switzerland’s cantons are so powerful

So why are German-speaking cantons subsidising French-speaking ones? 

The distribution of specific industries and businesses within Switzerland’s cantons plays a significant role in the disparity. 

The German-speaking cantons of Zug, Nidwalden and Schwyz, who will contribute the most, are each significant centres of economic activity across multiple sectors.

Approximately eight percent of the country’s GDP is generated between these three cantons and it has seen dramatic growth over the past decade.

These three cantons also feature the highest overall concentration of startups in Switzerland, with Zug (13.7 per 1000 residents) in the lead, followed by Schwyz (6.07) and Nidwalden (4.42). 

Additionally, it’s also worth noting that ‘Crypto Valley’ – the concentration of cryptocurrency and blockchain businesses focused on the canton of Zug – is worth approximately $611.81 billion (CHF 548 billion). 

In comparison, many of the cantons receiving funds, in Switzerland’s French-speaking west feature a more specialized economy. 

For example, the cantons of Vaud and Valais, Jura and Neuchâtel are home to a significant proportion of Switzerland’s farms. 

Neuchâtel and Jura also have economies that are focused towards watchmaking and precision engineering. 

READ MORE: EXPLAINED: Why is Switzerland so famous for watches?

There have been efforts to diversify the economies of these cantons and embrace developing industries, such as the life sciences-focused ‘Health Valley’ and autonomous vehicle ‘Drone Valley’ initiatives, centered on the country’s west but these are still in their early years. 

Cantons set own tax rates

This leads to the role played by tax policy. 

Under Swiss law, cantons can set their rates of taxation – and they’re able to use it to continuously draw an influx of business and new arrivals. 

Zug (22.2%), Nidwalden (24.2%)  and Schwyz (25.3%) can afford to set some of the country’s most competitive individual tax rates, as opposed to Valais (36.5%), Jura (39.0%) and Neuachtel (38.1%). 

While not as wide a gulf, the company tax rates for Zug (11.85%), Nidwalden (11.97%) and Schwyz (14.6%) make them a far more attractive investment proposition than Valais (17.12%) and Jura (16.0%). 

Such competitive rates are possible because these ‘richer’ cantons have a wider economic base, diversified across several sectors.

This ensures greater resilience and a continual draw of new arrivals and enterprises, more so than cantons where one particular industry dominates and is subject to fluctuations from outside factors.

So does it run smoothly?

There is a fine balance to strike in the redistribution formula.

“The greater the support given to resource-poor cantons, the lower their incentive to seek to increase their tax base, and the more the resource-rich cantons have to hand over, the less the incentive to enlarge theirs,” Andreas Stöckli of the University of Fribourg told Swiss Info.

In other words the transfer from cantons that tax-attractive to those that are less tax-attractive needs to be well-balanced.

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