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Hershey Announces Low Double-Digit Chocolate Price Hikes and Pack Reductions

Record cocoa costs have prompted Hershey to pass on expenses through low double-digit price increases with pack size adjustments this fall.

Hershey's chocolate bars are shown on July 16, 2014 in Chicago, Illinois.
Hershey's Miniatures chocolates arranged in San Francisco, California, US, on Monday, Dec. 9, 2024.

Overview

  • Hershey informed retail partners that it will apply a low double-digit percentage increase to its chocolate portfolio to address unprecedented cocoa prices.
  • The company plans to shrink package weights under a revised price-pack architecture to soften the impact of higher list prices.
  • Cocoa futures have retreated from last December’s record $12,600 per ton to about $8,100 but remain elevated after successive poor harvests in Ghana and Ivory Coast.
  • Rivals such as Lindt & Spruengli and Mondelez International have also implemented similar price and pack size changes in response to sustained cocoa inflation.
  • Hershey expects the changes to reach store shelves in roughly 90 days and is lobbying for exemptions to avoid $15–20 million in U.S. cocoa tariffs.