Hershey has informed retailers will probably be taking a double-digit value improve on common throughout its confection portfolio as a consequence of a surge in prices of cocoa, an organization spokesperson stated 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 stated.
Cocoa costs have risen sharply within the final two years and touched a report in December as a consequence of provide issues in Ghana and the Ivory Coast. Since then, the worth of cocoa has fallen to an eight-month low, although it stays above ranges seen earlier within the decade.
Throughout Hershey’s quarterly earnings name in Could, CEO Michele Buck stated the corporate was working to soak up excessive enter prices by adjusting the pack measurement and pricing collectively, particularly on seasonal objects.
These actions would result in greater costs within the second and third quarter, she had stated.
