Overview

• The Hershey Company will apply a lower double-digit price increase across its confectionery portfolio, affecting brands such as Hershey Kisses, KitKat, Reese’s and York
• The company cited rising ingredient costs, notably cocoa futures that surged 178% in 2024 after climate-exacerbated harvest shortfalls in Ghana and Ivory Coast
• Although cocoa prices have eased from December’s peak of $12,646 per metric ton, they remain above $8,000 per ton and continue to strain profit margins
• Hershey emphasized the price adjustment is not linked to tariffs or trade policy and will typically take about 90 days to materialize on shelves, subject to retailer timing
• To manage consumer value perception, the company will implement shrinkflation by reducing package sizes as part of its “price pack architecture” strategy