Hershey has instructed retailers it will be taking a double-digit price increase on average across its confection portfolio due to a surge in prices of cocoa, a company spokesperson said Tuesday.
The maker of Reese’s Peanut Butter Cups declined to remark on 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 said.
Hershey has instructed retailers it will be taking a double-digit price increase on average across its confection portfolio due to a surge in prices of cocoa. REUTERS
Cocoa costs have risen sharply in the last two years and touched a report in December due to provide issues in Ghana and the Ivory Coast. Since then, the price of cocoa has fallen to an eight-month low, though it stays above ranges seen earlier in the decade.
During Hershey’s quarterly earnings call in May, CEO Michele Buck said the company was working to take up high enter prices by adjusting the pack measurement and pricing collectively, particularly on seasonal objects.
These actions would lead to greater costs in the second and third quarter, she had said.