Hershey and other chocolate makers hike prices as cocoa remains near record highs
But here's the bad news: Hershey and other chocolate makers are continuing to hike prices, saying a volatile cocoa market gives them no choice.
Hershey, the maker of Reese's, Whoppers, barkThins and other chocolate candies, said Wednesday that it will be raising U.S. retail prices later this fall. In some cases, pack sizes will get smaller; in others, list prices will rise. The average price increase will be in the low double-digit percentages.
'This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,' Hershey said in a statement.
Hershey stressed that the price increases won't apply to products specially packaged for Halloween.
On Tuesday, Swiss chocolatier Lindt said it raised prices by 15.8% in the first half of this year. The company said it was able to offset some of the higher cost of cocoa with long-term contracts but had to pass much of it on to consumers.
'The development of the global chocolate market in the first half of 2025 was a continuation of what we saw in 2024, with cocoa prices remaining close to record highs,' said Adalbert Lechner, Lindt's CEO, in a conference call with investors.
Cloetta, a Swedish confectionary company, told investors last week that it raised chocolate prices in the second quarter. And Nestle raised U.S. prices for products like Toll House chocolate chips in the spring.
Cocoa prices have more than doubled over the past two years due to poor weather and disease in West Africa, which supplies more than 70% of the world's cocoa.
Cocoa futures, which are binding contracts for a specific quantity of cocoa, stood at $7,380 per metric ton on Wednesday, according to the International Cocoa Organization, which releases a daily average of prices in London and New York.
That's down from December's peak of $11,984, but it's still 121% higher than two years ago.
And the situation remains volatile. According to the International Cocoa Organization, prices surged in early June on concerns about production in Ivory Coast but eased on optimistic forecasts for production in Ghana and Latin America. They rose again in late June after heavy rains in West Africa, which could worsen the outbreak of diseases that harm crops.
'It's almost a bit dangerous to comment on this because it's changing so fast,' Cloetta Chief Financial Officer Frans Ryden said last week in a conference call with investors. 'This is something that's moving hugely up and down all the time.'
Meanwhile, prices have been rising on store shelves. The average unit price of a chocolate bar in the U.S. in July 2021 was $2.43, according to Nielsen IQ, a market research company. As of last week, it was $3.45, a 41% increase.
That's hurting customer demand. Nielsen said unit sales of chocolate fell 1.2% in the year ending July 12.
Tariffs could also impact U.S. prices. President Donald Trump threatened a 21% tariff on cocoa and other products from Ivory Coast in April, for example, but then paused the tariffs' implementation.
The National Confectioners Association is asking the Trump administration to protect cocoa from tariffs. The group says the U.S. imports nearly $4.4 billion in chocolate, cocoa and candies each year, and the association's members export nearly $2 billion in American-made chocolates and candy annually.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
a day ago
- The Hill
IKEA opening new, smaller-footprint stores in 6 cities this year: What's inside
(NEXSTAR) — For those who love wandering through dozens of model rooms, furniture with Swedish names, and assembly instructions known to cause ire online, there is no better place than IKEA. But with only a few dozen stores in the U.S., experiencing the joys of using their small pencils, dining on Swedish meatballs, and leaving with an iconic blue IKEA tote bag might be just out of reach for you. That may soon change, though. IKEA expects to open five more locations before the end of the year, and at least one store in 2026, a spokesperson confirmed to Nexstar. Already this year, the company has opened locations in Cherry Hill, New Jersey, and Beaverton, Oregon. Unlike the massive warehouse IKEA stores you may be familiar with, these stores are much smaller. For comparison, the IKEA in Portland, Oregon, is roughly 280,000 square feet with 1,200 parking spots outside, while the new Beaverton location fits into a shopping strip with just a few stalls for parking. Known as Plan & Order points with Pick-up, these IKEA locations' smaller footprints 'make it easier for the IKEA customer to shop with us more frequently, or in some cases, for the first time ever,' a spokesperson explained. 'While customers will not find the entire IKEA product range on-site, the small store format offers the most relevant range of products and provides digital access to everything that IKEA offers,' they added. There are IKEA experts available to help customers 'plan and order home furnishing solutions,' though you would not be able to take home your new furniture that same day. Instead, you'll be able to schedule delivery or order pick-up at the same location. The IKEA locations also serve as pick-up points for online orders. Another Plan & Order store opened in Hunt Valley, Maryland, outside of Baltimore, earlier this month. More are scheduled to open within the next year, an IKEA spokesperson has confirmed. Those locations will be in Manteca, California, and Henderson, Nevada. As of July 2025, IKEA has 17 Plan & Order locations across 10 states, though the location in Alpharetta, Georgia, is set to close at the end of August. IKEA opened an additional store earlier this month in San Marcos, Texas, describing it as a 'small store.' Measuring under 35,000 square feet, the San Marcos store showcases ''local living' solutions thoughtfully tailored to reflect the unique everyday needs of the San Marcos community,' IKEA explained. Despite its small size, more than 2,500 products are on display with 2,000 items available for purchase, including 'a small range of Swedish Food Market items.' Other small IKEA stores are scheduled to open in Syracuse, New York, and Dallas and Rockwall, Texas, later this year. Another is on track to open in Phoenix next year. In total, three of IKEA's more than 50 stores are considered 'small stores.' In addition to San Marcos, those stores are found in Arcadia and San Francisco, California. Unlike Buc-ee's, IKEA isn't stepping into any new states with these store openings. Including retail spaces and pick-up locations for furniture and large orders, IKEA can be found in more than 30 states.
Business Insider
2 days ago
- Business Insider
The world's richest people are pouring money into Africa's luxury resorts
A private island off Tanzania's coast, where guests pay around $50,000 per night for exclusive use of a villa, catamaran, and helicopter transfers inside a protected marine reserve, is emerging as the latest marker of Africa's fast-growing luxury hospitality market. According to a Bloomberg report, the resort is run by Dubai's Jumeirah Group LLC, part of the emirate's royal business empire, and reflects a broader surge of global investor interest in African tourism. From vineyard retreats to elite safaris and gorilla treks, billionaires, tech moguls, and Middle Eastern investors are turning their attention and capital toward Africa, now seen as one of the last untapped frontiers of luxury travel. Jumeirah has teamed up with the Swedish founders of Thanda Group to offer a private island escape off Tanzania and a Big Five safari experience in South Africa. Kasada Capital Management, backed by Qatar's sovereign wealth fund, is expanding its footprint, eyeing deals in Morocco and adding to its 19-hotel portfolio across seven African nations. Meanwhile, Albwardy Investment, the firm behind Dubai's Desert Palm Polo Estate, is pushing ahead with developments in Zanzibar and Seychelles. It's a marked shift. Where African hospitality was once largely shaped by state-led initiatives, it's now being redefined by private capital, keen to meet a growing appetite for luxury experiences in untamed destinations. Billionaires are betting big Billionaires are increasingly drawn to Africa. For many, the cost of entry, from land acquisition to development, is significantly lower than in more established markets. Meanwhile, tourism numbers are soaring. In 2024, Africa surpassed pre-pandemic levels of international arrivals, welcoming 74 million visitors, according to UN Tourism. A 2024 Deloitte report on next-generation travellers forecasts that the Middle East and Africa will lead global growth in inbound tourism through 2040. Africa alone is expected to expand at a compound annual rate of 3.5% from 2019 to 2040, showing the region's long-term appeal. Virgin Limited Edition, the luxury hospitality brand founded by Richard Branson, has made Africa central to its strategy; over half its properties are on the continent, with more investments on the horizon. Others are following suit. Koos Bekker, the billionaire behind Naspers Ltd., recently opened his second ultra-luxury lodge in South Africa. United Africa Group, led by entrepreneur Haddis Tilahun, is in talks to acquire five high-end properties, while Club Med, backed by Chinese tycoon Guo Guangchang's Fosun, is preparing to launch a bush-and-beach resort in South Africa by next July.
Business Insider
2 days ago
- Business Insider
The world's richest are pouring money into Africa's luxury resorts
Billionaires are increasingly drawn to Africa. For many, the cost of entry, from land acquisition to development, is significantly lower than in more established markets. Notable investments in African luxury travel include Richard Branson's Virgin Limited Edition and expansions by Kasada Capital Management. Global investors, including billionaires and Middle Eastern firms, are increasingly interested in African tourism due to untapped potential and cost efficiencies. The Jumeirah Group teams up with Thanda Group to develop high-end African destinations, such as private islands and safaris. A private island off Tanzania's coast, where guests pay around $50,000 per night for exclusive use of a villa, catamaran, and helicopter transfers inside a protected marine reserve, is emerging as the latest marker of Africa's fast-growing luxury hospitality market. According to a Bloomberg report, the resort is run by Dubai's Jumeirah Group LLC, part of the emirate's royal business empire, and reflects a broader surge of global investor interest in African tourism. From vineyard retreats to elite safaris and gorilla treks, billionaires, tech moguls, and Middle Eastern investors are turning their attention and capital toward Africa, now seen as one of the last untapped frontiers of luxury travel. Jumeirah has teamed up with the Swedish founders of Thanda Group to offer a private island escape off Tanzania and a Big Five safari experience in South Africa. Kasada Capital Management, backed by Qatar's sovereign wealth fund, is expanding its footprint, eyeing deals in Morocco and adding to its 19-hotel portfolio across seven African nations. Meanwhile, Albwardy Investment, the firm behind Dubai's Desert Palm Polo Estate, is pushing ahead with developments in Zanzibar and Seychelles. It's a marked shift. Where African hospitality was once largely shaped by state-led initiatives, it's now being redefined by private capital, keen to meet a growing appetite for luxury experiences in untamed destinations. Billionaires are betting big Billionaires are increasingly drawn to Africa. For many, the cost of entry, from land acquisition to development, is significantly lower than in more established markets. Meanwhile, tourism numbers are soaring. In 2024, Africa surpassed pre-pandemic levels of international arrivals, welcoming 74 million visitors, according to UN Tourism. A 2024 Deloitte report on next-generation travellers forecasts that the Middle East and Africa will lead global growth in inbound tourism through 2040. Africa alone is expected to expand at a compound annual rate of 3.5% from 2019 to 2040, showing the region's long-term appeal. Virgin Limited Edition, the luxury hospitality brand founded by Richard Branson, has made Africa central to its strategy; over half its properties are on the continent, with more investments on the horizon. Others are following suit. Koos Bekker, the billionaire behind Naspers Ltd., recently opened his second ultra-luxury lodge in South Africa.
