The Story Of Bodeta

Bodeta sweets is a 130 year old German brand and one of the largest Confectionery manufacturer specialised in chocolate nuggets, candies, easter specialities, and dragees. 

Quality being the highest priority at Bodeta, their products have the highest certifications and accredited by the most important auditing body of the food industry, the International Food Standard (IFS). 

The unique set of flavours of their famous candies range from menthol to eucalyptus, raspberry, and orange and the highlight being the ginger-cherry and the multi-fruit combination. 

They bring forth the best recipes and ingredients that makes them most loved by their consumers. Their classic collection is known for the smooth and creamy taste while their organic collection stands out for the refreshing and soothing experience. 

As the marketing jargon goes, packaging is as important as the product and their sweets shine on the shelves in attractive, colourful, and eye-catching wrappers that are packed perfectly with the packaging matched by shape, colour, taste, and appearance. 

Even the best of brands suffer the lows. The company has reached a state today that it is unable to continue operations due to rising costs. The company has filed for insolvency as it is no longer in a position to pay for the production costs due to rising prices of energy, raw materials, and personnel in the country. 

So what went wrong? 

High inflation and looming recession post the pandemic are putting businesses under tremendous pressure. Higher interest rates are making credit more expensive in slowing down economies. 

How does this impact the insurable business risks? 

Company Directors and responsible officers play a significant role in understanding and managing the dynamic risks, both internal and external. Higher insolvency risks bring multiple potential liabilities for the Directors from a range of stakeholders including customers, regulators, creditors, public authorities, trading partners, and many more. 

What does this teach us? 

A well customised Directors and officers liability insurance is a recourse that would provide protection from personal liabilities on the Directors arising from allegations of breach of fiduciary or statutory obligations. 

It would be important for businesses and companies who have exposure in countries encountering slow down in GDP to assess the exposures and insure adequately. 

Furthermore, the need to protect bad debts in business with a well structured Credit insurance is a need of the hour.

Report source: Rising inflation coincides with slowed down economic growth (https://www.oecd-ilibrary.org/sites/ae8c39ec-en/index.html?itemId=/content/publication/ae8c39ec-en&_csp_=975061244d5d905018ab2bd19cea8c9a&itemIGO=oecd&itemContentType=book#tablegrp-d1e121)

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