Rich cocoa prices hitting shoppers with bitter chocolate costs as Easter approaches

Big chocolate companies like Hershey's and Cadbury maker Mondelez have been passing the rising costs of cocoa on to consumers — and then some.Cocoa futures have surged this year, roughly doubling since the start of 2024. Rising temperatures and weather conditions have stressed and damaged crops in West Africa, which produces more than 70% of the global cocoa supply.

Big chocolate companies like Hershey's and Cadbury maker Mondelez have been passing those costs on to consumers — and then some: Hershey's net profit margins ticked higher to 16.7% in 2023 from 15.8% in 2022. Mondelez reported a jump to 13.8% in 2023 from 8.6% in 2022. The National Retail Federation expects a drop in spending on Easter this year, though the total figure still remains high by historical standards. Its latest survey shows that consumers are expected to spend $3.1 billion on candy this Easter, or $24.78 per person. That’s down from $3.3 billion, or $26.31 per person a year ago.

"Pricing is clearly a key component of this plan,” said Luca Zaramella, chief financial officer at Mondelez, in an conference call in January. “Its contribution will be a little bit less than we have seen in 2023, but it is higher than an average year.”Hershey raised prices on chocolate overall last year as inflation surged and said it increased prices on some grocery and food service items early in 2024. It expects sales growth of up to 3% this year.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Rich cocoa prices hitting shoppers with bitter chocolate costs as Easter approachesSweet Easter baskets will likely come at a bitter cost this year for consumers as the price of cocoa climbs to record highs. Cocoa futures have roughly doubled in 2024 after surging 61% overall in 2023. Rising temperatures and weather conditions have stressed and damaged crops in West Africa, which produces more than 70% of the global cocoa supply.
Source: AP - 🏆 728. / 51 Read more »

Rich cocoa prices hitting shoppers with bitter chocolate costs as Easter approachesSweet Easter baskets will likely come at a bitter cost this year for consumers as the price of cocoa climbs to record highs.
Source: DenverChannel - 🏆 239. / 63 Read more »

Rich cocoa prices hitting shoppers with bitter chocolate costs as Easter approachesSweet Easter baskets will likely come at a bitter cost this year for consumers as the price of cocoa climbs to record highs.
Source: WashTimes - 🏆 235. / 63 Read more »

Rich cocoa prices hitting shoppers with bitter chocolate costs as Easter approachesThe owners got a call from police just after 5 a.m. Thursday saying someone had driven into their patio.
Source: KING5Seattle - 🏆 457. / 53 Read more »

Rich cocoa prices hitting shoppers with bitter chocolate costs as Easter approachesThe crash was reported around 5:15 a.m. Friday at the intersection of North Emerson Avenue and East 46th Street.
Source: WTHRcom - 🏆 329. / 59 Read more »

Rich cocoa prices hitting shoppers with bitter chocolate costs as Easter approachesThe flag football team makes its debut as the American Flag Football League kicks off with its inaugural season in late April.
Source: wfaa - 🏆 543. / 51 Read more »