Hershey to hike chocolate prices by double digits – Business News
Hershey has informed retailers it will likely be taking a double-digit price increase on average throughout its confection portfolio due to a surge in prices of cocoa, a company spokesperson mentioned Tuesday.
The maker of Reese’s Peanut Butter Cups declined to touch upon the specifics of the pricing motion as discussions with its retail companions are underway.
“This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” the spokesperson mentioned.
Hershey has informed retailers it will likely be taking a double-digit price increase on average throughout its confection portfolio due to a surge in prices of cocoa. REUTERS
Cocoa prices have risen sharply within the final two years and touched a document in December due to provide issues in Ghana and the Ivory Coast. Since then, the price of cocoa has fallen to an eight-month low, although it stays above ranges seen earlier within the decade.
During Hershey’s quarterly earnings call in May, CEO Michele Buck mentioned the company was working to take up high enter prices by adjusting the pack measurement and pricing collectively, particularly on seasonal objects.
These actions would lead to increased prices within the second and third quarter, she had mentioned.
