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Nestlé will cease production at its Diósgyőr, Hungary, confectionery plant in December 2026, citing declining demand for seasonal chocolate products.

The company informed employee representative bodies of the decision this month. The facility currently produces hollow chocolate figures for distribution across several international markets.

According to a Nestlé spokesperson, output at the plant has "decreased significantly" in recent years amid weaker demand for seasonal confectionery. The facility represents less than 3% of Nestlé revenue in Hungary and approximately 0.4% of its domestic production volume.

Alongside preparations to halt production, Nestlé has entered advanced negotiations over the sale and future operation of the factory. The company said it hopes to transfer the facility to an investor that will continue confectionery manufacturing, potentially preserving employment for as many workers as possible.

Nestlé said it will provide further information on the outcome of the advanced negotiations at a later date.

The company’s hollow chocolate figures will remain available following the shutdown, with production set to move to an independent manufacturer operating in accordance with Nestlé’s quality standards.

Nestlé added that its other Hungarian factories in Szerencs and Bük will continue operating and developing.