All articles tagged with #cocoa prices
Despite cocoa prices plunging nearly 50% this year after a historic rally, chocolate remains expensive due to manufacturers' existing high-cost cocoa stocks and recipe adjustments, with price reductions unlikely until the second half of next year.
Chocolate's dominance in Halloween candy is waning due to rising costs from tariffs, inflation, and high cocoa prices, leading to increased prices and a shift towards cheaper, non-chocolate sweets among consumers, despite overall strong holiday sales.
Halloween candy prices in 2025 are higher than in 2024, driven by rising cocoa prices due to climate change and increased manufacturing costs, leading to higher retail prices and consumer strategies to save money.
Halloween candy prices are rising due to high cocoa costs, leading to less chocolate content, smaller packages, and more gummies, with overall candy costs up 10.8% from last year, impacting both consumers and small businesses.
Halloween candy prices are rising due to high cocoa prices, inflation, and tariffs, leading to more gummies, less chocolate, and higher costs for consumers, with candy companies adjusting packaging and ingredients to manage costs.
Candy prices are rising due to soaring cocoa costs, leading to smaller bags and alternative treats for Halloween, although consumer spending on Halloween candy remains strong despite higher prices. Cocoa prices have doubled since early 2024, impacting the confectionery industry, but are now trending down as supply improves, potentially moderating prices by Valentine's Day 2026.
Hershey is increasing the prices of its chocolate products by a 'lower double-digit' percentage due to soaring cocoa costs, which have risen significantly in 2024 driven by climate change impacts on cocoa-producing regions. The company also plans to implement 'shrinkflation' by reducing package sizes to manage costs without directly raising prices. Other chocolate makers like Lindt are also raising prices amid high cocoa prices.
Hershey is raising the prices of its chocolate products by a 'lower double-digit' percentage due to soaring cocoa costs, which have increased significantly in 2024 because of poor harvests in cocoa-producing regions affected by climate change. The company also plans to implement 'shrinkflation' by reducing package sizes to manage costs without directly raising prices. Other chocolate companies like Lindt are also experiencing similar price hikes.
Mondelez International is considering another attempt to acquire Hershey, driven by high cocoa prices and changing consumer habits, which may make Hershey more amenable to a deal than in 2016. A merger would create a $50 billion food group, intensifying competition with Mars Inc. The Hershey Trust, controlling 80% of Hershey's voting shares, will play a crucial role in the decision. Mondelez's strategy aligns with recent industry trends, such as Mars' acquisition of Kellanova, highlighting the need for scale and diversification in the food market.
Cocoa prices have surged to record levels due to a combination of factors including financial turmoil, climate change, and market complexities. This is likely to result in more expensive chocolate and potentially smaller servings for consumers. While high prices could theoretically reduce demand and increase supply, the situation with cocoa demonstrates the complexities of market dynamics and the time it takes for new cocoa trees to grow, suggesting that elevated prices may persist for years.
Cocoa prices have skyrocketed, surpassing the value of several precious metals and even bitcoin, due to a significant drop in supply caused by extreme weather and changing climate patterns in West Africa. This has led to a historic rally in cocoa prices, with buyers scrambling and speculators exacerbating price volatility. Chocolate makers and sellers are expected to pass on higher ingredient costs to consumers, leading to smaller chocolate bars and price hikes. As a result, shoppers are anticipated to spend more on chocolate and candy this Easter season, despite the rising prices.
U.S. stocks closed lower, with consumer optimism waning as anxiety about the economy grows, reflected in a dip in the closely watched consumer confidence gauge for March. The closure of the Port of Baltimore has logistics firms scrambling, cocoa prices are surging, and Apple is set to reveal its AI game plan at its annual developers conference in June. Additionally, investors are turning to exchange-traded funds amidst market volatility.
Hershey Co. was downgraded by BNP Paribas Exane to neutral from outperform due to the surge in cocoa prices, which have more than doubled this year and hit a record high. The EU Deforestation Regulation is adding structural costs to the cocoa supply chain, leading to concerns that the inflation may be more long-term than previously thought. Analysts have reduced their earnings estimates for Hershey, and the company has indicated it will use various strategies, including price increases, to combat input inflation. Morgan Stanley also downgraded the stock, citing risks including the significant cocoa inflation.
Cocoa prices have surged to record levels due to supply disruptions in key producing nations of Ivory Coast and Ghana, leading to the worst supply deficit in decades. Consumers could soon face higher prices or "shrinkflation" in chocolate products, with the industry working to manage costs and keep chocolate affordable. The surge in prices has hit chocolate giant Hershey, which sees flat earnings for the year, while speculators and bad weather exacerbate the situation. The industry is bracing for the worst as the systemic issues facing the market are expected to keep cocoa prices elevated for some time.
US stocks reversed gains late in Tuesday's trading day, with the Nasdaq lagging, while the S&P 500 and Dow Jones also dipped; Trump Media & Technology Group Corp. surged in its first day of trading, while Tesla, Krispy Kreme, and Viking Therapeutics also trended; Cocoa futures hit all-time highs amid a supply deficit, impacting Hershey's stock; US home prices rose in January at the fastest pace since 2022; Consumer confidence in the future state of the US economy declined, with the "Expectations Index" signaling potential recession; Reddit stock continued to rally, and US stocks opened higher, led by the Nasdaq.