Hershey’s to Increase Candy Prices Amid Rising Cocoa Costs
In Hershey, Pennsylvania, shoppers should expect higher prices in the candy aisle soon.
The Hershey Company has announced plans to raise prices across its product line, citing the increasing cost of raw materials, especially cocoa.
A spokesperson for Hershey stated, “We’re dedicated to enhancing our products and the overall customer experience while continuing to offer beloved treats. We’re making price adjustments with our retail partners to support this commitment. This is not related to tariffs or trade policies, but rather a response to the rising costs of ingredients, particularly unprecedented cocoa prices.”
According to the spokesperson, Hershey’s brands, including Reese’s, Almond Joy, and Kit Kat, are “doing their best to absorb these costs.”
The Associated Press reported that these price changes are expected to kick in later this fall, with an average increase in the double digits. In some instances, the product size may also decrease.
Over the past two years, cocoa prices have more than doubled. Bad weather and illness in West Africa, which produces over 70% of the world’s cocoa, have contributed to this surge.
On Wednesday, cocoa futures were priced at $7,380 per metric ton, according to an international cocoa organization that publishes daily average prices. While this is lower than a peak of $11,984 in December, it still reflects a 121% increase from two years ago.
The market remains volatile. Prices had previously risen in early June due to production concerns in Ivory Coast but had dipped with improved production estimates for Ghana and Latin America. Subsequently, heavy rains in West Africa led to another price spike due to the potential for crop diseases.
Hershey isn’t the only company facing this challenge; other candy makers are also raising prices. For example, Swiss chocolatier Lindt announced a 15.8% price increase in the first half of this year. They have managed to mitigate some of the cocoa costs through long-term contracts but still had to pass significant expenses onto consumers.
Swedish confectionery company Cloetta reported that it raised chocolate prices in the second quarter, while Nestlé also increased prices for various chocolate products earlier this spring.
Additionally, earlier this month, nine members of Pennsylvania’s Republican Congressional delegation reached out to the U.S. Trade Representative, requesting an end to tariffs on unfinished cocoa and chocolate imports. They highlighted the rising costs and the absence of domestic alternatives, as cocoa trees do not grow in the U.S.
The lawmakers mentioned, “These imported goods support a thriving domestic chocolate manufacturing industry, which employs tens of thousands of people, particularly in Pennsylvania.”
Importantly, Hershey noted that the price increases will not affect products specifically packaged for Halloween, although further comments on Halloween pricing were not available.
