The most important thing
Hershey´s will soon increase the prices of its sweets, according to several media, due to the rise in cocoa costs, which has led the chocolate company to reconsider its list prices, as well as the amount or weight of the products in each packaging.
Key data
- The rise will imply an increase of two percentage digits, according to The Wall Street Journal, which reported that the increases will vary according to the retail client and will be between a little more than 10% and up to 20%.
- In addition to the new prices, the weight and amount of sweets will be adjusted, according to Bloomberg, citing a statement by Andrew Archambault, president of confectionery in the US of Hershey´s, who clarified that the increases are not related to commercial policies or tariffs.
- The moment in which the new prices will be implemented will depend on the retailer, although a spokesman told CBS News that the increases usually take about 90 days to be reflected.
- Forbes contacted Hershey to request comments.
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Why will Hershey upload prices?
For the rise in the prices of the ingredients and, in particular, for the “unprecedented cost of cocoa,” Archambault told Bloomberg. Supply shortage has triggered cocoa prices, since Ivory and Ghana Costa – which represent more than half of the world supply – face adverse climatic conditions that have affected production. These regions have suffered excessive heat during the culture season, irregular rains and pest patterns, according to central weather investigations.
Additional data
Hershey’s shares rose on Tuesday and closed with an increase of almost 3%, in 181.69 dollars, one of its highest levels of the year, on a day in which the markets were mostly flat.
Key history
This Tuesday marks the most recent price increase by Hershey´s, after having uploaded its prices a year ago. The chocolatera reported a gain of 224.2 million dollars in the first quarter of the year, although it pointed out that it expects an impact of between 15 and 20 million dollars due to the tariff policies implemented this year by President Donald Trump. Hershey has requested an exemption from the president and, according to Bloomberg, maintains the hope of obtaining it.
This note was originally posted in Forbes Us.
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