Hershey’s Chocolate Price Increase: What This Means for Your Favorite Treats

Your favorite candy bars, like Kit Kat and Reese’s, are about to cost more. Hershey’s is raising prices by “lower double-digit” percentages. The main reason? High cocoa prices.

Recently, cocoa futures jumped almost 180% in 2024 after a 61% rise the previous year. Ghana and Ivory Coast produce about 60% of the world’s cocoa, but they faced poor harvests due to climate issues. A recent study highlighted that a heat wave in early 2024 made temperatures around cocoa farms 4 degrees Celsius higher because of climate change. This spike contributed to a staggering 280% rise in cocoa prices that April.

Currently, cocoa futures stand at $8,156 per metric ton. While that’s lower than the peak of $12,646 in December 2024, it’s still much higher than two years ago. Hershey’s noted that these increases are not tied to tariffs or trade policies, although they did expect to incur about $15 million to $20 million in tariff costs in the second quarter.

A Hershey spokesperson explained, “This price increase reflects the reality of rising ingredient costs, especially cocoa.” They had previously tried to keep prices low, aiming for 75% of their products to stay under $4. Additionally, they are adjusting package sizes, often referred to as “shrinkflation,” giving customers a perception of better value without a direct price hike.

Lindt, another chocolatier, mentioned that they also raised prices and expect to do so into 2025 due to similar challenges. This trend reflects a broader struggle in the candy industry, where rising ingredient costs impact consumer choices.

As prices rise, social media reactions have shown mixed feelings. Some fans express disappointment, while others joke about the “new normal” for candy prices. The pricing strategies employed by companies like Hershey and Lindt highlight how economic factors directly influence what we pay for sweet treats.

For further insights on the cocoa market and its impact, you can check out this report from Bloomberg.

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