Hershey to increase chocolate prices as cocoa costs remain high, eTbrandequity

Hershey told retailers that will accept on average an increase in two -digit prices through its portfolio of packaging due to an increase in cocoa costs, a spokesman for the company said on Tuesday.

The manufacturer of the reese peanut butter cups refused to comment on the details of the price action while discussions are underway with its retail sales partners.

“This change is not related to rates or commercial policies. Reflects the reality of the increase in the costs of the ingredients, including the unprecedented cost of the cocoa,” said the spokesperson.

Cocoa prices have increased abruptly in the last two years and have touched a record in December due to supply problems in Ghana and ivory coast. Since then, the cocoa price has fallen to a minimum of eight months, although it remains above the levels seen at the beginning of the decade.

During Hershey’s quarterly call in May, CEO Michele Buck said that the company was working to absorb high input costs by adapting the size of the package and prices together, in particular on seasonal items.These actions would have led to higher prices in the second and third quarter, he said.

Join the community of 2m+ professionals in the sector.

Sign up for the newsletter to get the latest intuitions and analysis in your mailbox.

<!–

–>

Everything about the ebrandequity industry on your smartphone!

<!–

–>

<!–
Scan to download App –>

<!– –>