Photo: skodonnell / iStock Unreleased / Getty Images
The Hershey Company announced plans to increase the prices of its chocolate products due to rising costs of cocoa and other ingredients. The price hike, confirmed on Tuesday (July 22), comes as cocoa prices have surged due to climate change and disease affecting crops in West Africa, where most cocoa is harvested.
According to Newsweek, Hershey plans to raise prices by a "lower double-digit" percentage. The exact details of the increase and which products will be affected have not been disclosed. Hershey, known for products like Reese's Peanut Butter Cups and Hershey's Kisses, informed its retail customers about the upcoming changes last week.
The price of cocoa on the New York commodities market has tripled since 2022, peaking at over $12,000 per metric ton in December 2024. Although prices have adjusted to around $8,100 per metric ton, they remain significantly higher than two years ago. Hershey's 2024 annual report predicted these high cocoa prices would pressure 2025 earnings.
Hershey emphasized that the price increases are not related to tariffs or trade policies but reflect the rising ingredient costs. A spokesperson told Yahoo Finance that the company has worked to keep 75% of its product portfolio available for under $4.00.
The company anticipates cocoa production to rebound, potentially marking the start of a multi-year growth cycle. Hershey's CEO Michele Buck, set to retire in August, expressed optimism about future cocoa supply during a May earnings call.