The effect on prices of new U.S. tariffs have pushed many American buyers to look beyond China for candles, and the Viljandi-based Hansa Candle says that shift has given its online sales a noticeable lift.

Major markets include Sweden, Finland, the United States and Norway, while about just 5 percent of production is sold in Estonia.

Management board member Harri Juhani Aaltonen said the company's U.S. volumes have risen sharply since the tariffs took effect.

"President Trump is our best salesman," he said. He added that U.S. distributors have already sold through their stock and are now pushing for faster deliveries, but the company can't meet every request.

Despite narrow margins due to high input costs, the business remains profitable overall. And as long as China faces higher tariffs, he added, the Estonian producer will have a competitive edge.

Hansa Candle's busiest season is underway. With the holidays approaching, production manager Taive Toommägi said tabletop candle, outdoor candle and tealight production are all in full swing.

"We're working 12-hour shifts until December 19," Toommägi said. "Then we'll take a break until January 7." After that, the team will focus on building inventory ahead of demand.

Principles over profits

Paraffin remains the industry's key raw material. Hansa Candle stopped buying Russian paraffin in January 2022 — months before it was sanctioned — accepting a loss in the hundreds of thousands of euros. Aaltonen said it was a conscious decision.

While Russian paraffin was far cheaper than the German supply they now use, he said the company wouldn't support Russia's war machine.

"Using Russian paraffin supply, we would have seen profits of about €1.5 million," Aaltonen said. "Now we're expecting €50,000."

Hansa Candle, the largest candle producer in the Baltics, is a family-owned business run by Viljandi entrepreneur and Isamaa party member Harri Juhani Aaltonen and his children.

--

Follow ERR News on Facebook and X and never miss an update!