Cocoa Cost Crunch: Chocolate Giants Hershey, Mondelez Reportedly Shift Easter Focus To Sweeten Profits

Hershey Company HSY, Mondelez International Inc MDLZ, and other confection-makers are reportedly adapting strategies to mitigate the impact of soaring cocoa prices on their profits ahead of Easter.

Promotions are pivoting towards non-chocolate treats amid escalating cocoa costs, according to a report from Reuters.

Also Read: Hershey ‘Shrinkflation’: Chocolate Makers’ Cost Chaos As Cocoa Reaches $10,000 Per Metric Ton

With cocoa prices tripling in the past year due to bean disease in West Africa, companies like Hershey and Mondelez are focusing on Easter sales to offset profit pressures.

Rising inflation prompts consumer reluctance, emphasizing the importance of holiday sales for confection-makers.

Easter sales in the U.S., the largest chocolate market, are forecasted to maintain last year’s level, fueled mainly by price hikes rather than increased volumes sold, Reuters cited the National Confectioners Association.

The report further quoted David Branch from Wells Fargo Agri-Food Institute, who emphasized the impact of consumer behavior shifts, with holiday purchases compensating for reduced impulse buying throughout the year.

Despite challenges, Hershey remains optimistic, attributing consistent Easter sales to the preservation of traditions like chocolate bunnies and egg hunts.

Also, Mondelez reportedly eyes upscale Easter offerings targeting families willing to splurge on premium chocolate amid rising prices.

Price Action: HSY shares are trading flat at $192.26 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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