Chocolate prices are set to rise significantly, with Hershey leading the charge amidst a surge in cocoa costs, according to recent reports.
In a move to combat soaring cocoa costs, The Hershey Company has announced plans for a low double-digit price increase across its confectionery portfolio. The change, affecting popular products such as Reese's Peanut Butter Cups, Kit Kat Bars, and Hershey's Kisses, is set to take effect in about 90 days, just before the Halloween season.
The price hike comes as a result of an "unprecedented" increase in the cost of cocoa, compounded by supply issues including diseases affecting cocoa crops in West Africa and unfavourable weather conditions exacerbated by climate change.
Hershey is also considering a strategy known as shrinkflation, which involves reducing product sizes to manage costs without altering the price tag. The company is working closely with its retail partners to discuss the new pricing of its candy products.
Meanwhile, the outgoing CEO of Wendy's, Kirk Tanner, is set to take over the top leadership position at The Hershey Company, starting August 18. Tanner's arrival comes weeks after he announced his departure from Wendy's.
The current CEO, Michele Buck, has announced her retirement for June 2026, and the company is working on a succession plan to ensure continuity and execution of its strategic plans. In her place, Hershey is strategizing to mitigate commodity volatility by diversifying its sourcing and hedging strategies, investing in cocoa science programs, and adjusting formulations and demand shaping.
It's important to note that this price increase is not related to tariffs or trade policies. The Hershey Company, based in Pennsylvania, owns more than 90 brands, including Reese's Peanut Butter Cups, Kit Kat, and Milk Duds.
Recent news has also highlighted a lawsuit against Hershey for allegedly selling dark chocolate filled with lead and cadmium. However, no new information regarding this matter has been provided in this context.
As Hershey navigates these challenges, consumers can expect changes in product prices and possibly sizes in the coming months. The company remains committed to delivering quality products while managing costs effectively.
In order to address surging cocoa costs and manage expenses, Hershey Company plans a low double-digit price increase across its fashioned confectionery portfolio, which includes renowned products like Reese's Peanut Butter Cups, Kit Kat Bars, and Hershey's Kisses. The new pricing strategy also considers exploring shrinkflation as a potential cost-mitigation approach, reducing product sizes while maintaining competitive prices. Moreover, the company's strategic plans involve diversifying sourcing and hedging strategies, investing in cocoa science programs, and adjusting formulations and demand shaping, all aimed at combating commodity volatility in finance and business operations.
