Easter is on the horizon, but the price of chocolate may leave a bitter aftertaste for some people leading up to the sweet holiday.
Two popular chocolate brands recently indicated they may raise prices on products again due to the rising cost of cocoa, which has gone up following torrential rain in major cocoa-growing regions that affected production.
Executives from Hershey and Cadbury each pointed to possible additional price hikes in recent earning calls, identifying rising cocoa costs as a main culprit behind the increases.
“Given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business,” said Michele Buck, president and CEO of the Hershey Company, in a Feb. 8 earnings call.
Hershey has already raised prices on some grocery and food service items this year, with the latest increase last month, according to executives.
Mondelēz International, the company behind Cadbury chocolates, announced the possibility of a similar price hike for its products in a fourth quarter earnings call in late January.
