• The Wall Street Journal, Friday, April 18, 2008 10:45 AM

Citing annual growth rates of as much as 8% for high-end chocolate products--twice the rate of the general chocolate market-- Nestlé SA says it wants to lift its share of sales from dark and other luxury sweets. "Even countries which have no dark-chocolate tradition are successfully introducing such products," says Nestlé's head of chocolate operations, Petraea Heynike. Premium chocolate products are typically more resilient when consumer spending in general slumps, analysts say.

Some analysts expect Nestlé to focus on organic growth and perhaps start a global premium chocolate brand. Others say the company may be looking for a purchase. Heynike declines to elaborate on the company's next steps. Nestlé's rivals-- such as Switzerland's Chocoladefabriken Lindt & Sprüngli--recognized the trend long ago and already hold formidable market positions.

This year, Nestlé inaugurated a luxury-chocolate research center in western Switzerland and entered a pact with Belgian specialty chocolatier Pierre Marcolini. Nestlé will receive creative input from Marcolini while helping its partner to expand.

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