Hershey plans to increase prices across its products to address rising cocoa costs, which have drastically fluctuated over recent years. The price of cocoa surpassed $10,000 per metric ton last year, hitting historical highs and has since doubled and tripled within two years. Cocoa, derived from the cacao tree, is primarily grown in West Africa, making it vulnerable to environmental changes. Climate crises, characterized by extreme weather including excessive rainfall and heat, adversely affect cocoa production, exacerbating supply challenges and subsequent price increases.
Hershey plans to raise prices on its products to offset the cost of cocoa, a commodity that's been on a pricing roller coaster of its own over the last two years.
Last year, the price of cocoa hit historical highs, soaring past $10,000 per metric ton. Cocoa prices began spiking at the beginning of 2024, doubling over the course of the year and tripling since late 2023.
Cocoa powder, used to make chocolate, comes from the seeds of the cacao tree, a water-intensive plant grown in tropical parts of Africa and South America.
With the global appetite for chocolate relying on a single region in Africa, cocoa is relatively vulnerable to forces outside of farmers' control-particularly climate-caused weather events that are worsening as the planet warms.
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