This year, an increasing number of the world's top candy companies have been sounding the alarm about skyrocketing cocoa prices, leading them to hike candy bar prices. The real culprit here isn't as much corporate greed but rather adverse weather conditions, such as drought in West Africa, which has decimated cocoa harvests and caused worldwide supply concerns. No matter how often politicians tell their constituents that voting for them will bring down overall inflation, we find that somewhat to believe, especially for food, as it will remain sticky in the years ahead.
Cadbury Australia is the latest confectionery company to warn about rising candy bar prices due to high cocoa prices. It said Freddo Frogs and Caramello Koalas prices will now double.
"Due to the record global price of cocoa and increased input costs, we have adjusted the RRP from $1 to $2, the first price change in over a decade," Cadbury wrote in an Instagram statement.
Cadbury's price hikes come as several other confectionery companies have done the same, including Nestlé Confectionery UK & Ireland, which said, "Demand appears to be resilient at the moment, but as prices go up, we would expect to see dampening demand."
Just last week, the CEO of iconic US chocolate maker Hershey made a stark observation about just how hard-hit soaring prices have been for the middle class, admitting that "consumers are pulling back on discretionary spending."
Record high cocoa prices have hit Hershey's margins and forced the company to raise their prices further — even as consumers cut down on brand name purchases at the supermarket. Hershey said that higher commodity costs eroded profitability during that period, offsetting productivity improvements and higher prices.
Here are the latest reports on the cocoa market:
Cocoa Prices Rise As US Stockpiles In Exchange-Monitored Warehouses Hit Four-Year Low
Cocoa Prices Slide To Five-Month Low On Demand Destruction Fears From Hershey
Americans Can't Even Afford Chocolate: Hershey Sales Crater, Guidance Melts
Swiss Chocolatier Warns High Cocoa Prices Resulting In Global Slowdown In Chocolate Market
KitKat-Maker Warns 'Cocoaflation' Will Send Chocolate Bar Prices Higher For Consumers
Meanwhile, Cocoa futures in New York have been oscillating in a symmetrical triangle pattern between $12k a ton and $7k a ton since early April.
The coiling in prices means a big move is nearing - yet direction has not been determined.
