Hershey's Hikes Chocolate Prices Due to Soaring Cocoa Costs
Cocoa prices have dropped to an eight-month low since December 2021, though they remain higher than levels seen earlier this decade. Despite this, Hershey's, the world's largest chocolate company, has announced a significant price increase for its confectionery products.
Hershey's CEO Michele Buck revealed that the company has been absorbing high input costs, including the cost of Costco stock, by adjusting pack sizes and pricing since the second quarter of 2022. Now, Hershey's is set to implement a double-digit average price increase across its entire confectionery portfolio. This change will take effect from the third quarter and continue through the end of 2023.
The primary reason behind this price hike is the rising cost of cocoa, a key ingredient in chocolate production. Cocoa prices have surged in the last two years, reaching an all-time high in December 2021. Hershey's has confirmed that this move is not related to tariffs or trade policies.
Hershey's customers can expect to pay more for their favourite chocolate treats in the coming months. The company's decision to raise prices is a direct response to the soaring cost of cocoa and other ingredients, despite recent drops in cocoa prices.
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