The cost of cocoa is out of control
We’re facing a serious chocolate crisis, and we’re not talking about Glasgow’s Willy Wonka experience a few weeks ago. Wholesale cocoa prices have skyrocketed by 138% this year, surpassing a record $10k/ton due to severe weather conditions and the spread of black pod disease in West Africa. This year’s cocoa crop quality has suffered as a result, marking the third straight year of chocolate supply shortages — and consumers are starting to notice the effect on prices.
- Chocolate prices have surged by 10.4% per unit since the beginning of the year — leading candy companies to consider tactics like “shrinkflation” to offset rising costs.
- Last year’s purchases of chocolate outside of holidays were down 3.6% — so candy manufacturers are rolling out discounts and promotions to boost sales this Easter.
Candymakers get creative: Hershey is emphasizing its non-chocolate products this holiday season to recover from sluggish growth in the last quarter. Meanwhile, rival Mondelez is shifting its focus towards cookies and crackers. So get ready, parents: You may have to explain why the Easter Bunny left gummies and lemon-flavored Kit Kats… and hopefully not crackers.
