Hershey is raising the price of its candy bars over the high cost of cocoa
Hershey to increase chocolate prices by double digits
- Hershey is set to increase prices for its chocolate products for retail customers by double-digit percentages, ranging from the low teens to 20 percent.
- The primary reason for these price hikes is the significantly elevated cost of cocoa, which reached over $12,000 per metric ton in December and remains high at around $8,100.
- Despite the increases, approximately three-quarters of Hershey's products are expected to continue retailing for $4 or less.
- West Africa, responsible for about 70 percent of the world's cocoa supply, has faced challenges including adverse weather, plant disease, and aging tree stocks, impacting global cocoa production.
- Other confectionery companies, such as Lindt & Spruengli and Mondelez International (makers of Cadbury), are also implementing price increases due to the rising cost of cocoa.