Hershey will soon raise its candy prices, according to multiple outlets, citing a jump in cocoa costs that have provoked the chocolate company to rethink its list prices and the quantities or weight of candy sold in each container.
Hershey's informed retail partners of the changes last week. Photographer: David Paul ... More Morris/Bloomberg
� 2024 Bloomberg Finance LPThe price hike will involve a double-digit percentage increase, according to The Wall Street Journal, which reported the increases will vary between retail customers and reach somewhere between the low teens and 20%.
Higher prices will be established as well as adjustments to candies weight and quantity, Bloomberg reported, noting a statement from Andrew Archambault, president of U.S. confection at Hershey, who said the hikes were not related to trade policies or tariffs.
The timeframe for the raised prices will vary by retailer, though a spokesperson told CBS News hikes usually take about 90 days to materialize.
Forbes has reached out to Hershey for comment.
Get Forbes Breaking News Text Alerts : Were launching text message alerts so you'll always know the biggest stories shaping the days headlines. Text Alerts to (201) 335-0739 or sign up here .
What Are The Reasons For Hersheys Price Increase?
Rising ingredient prices and a spike in the unprecedented cost of cocoa, Archambault told Bloomberg. Supply shortages have stoked the prices of cocoa, with the Ivory Coast and Ghana, which account for over half of the worlds cocoa supply, experiencing poor climate conditions that have hindered cocoa production. The regions have specifically experienced excessive heat during growing season, rainfall patterns and bug infestations, according to research from Climate Central.
Hersheys stock moved higher Tuesday, closing up nearly 3% at $181.69one of its highest closing prices of the yearin a day where markets were largely flat.
Key Background
Tuesday marks Hersheys latest price hike after it raised prices a year ago. The chocolate maker posted a $224.2 million profit in its first-quarter earnings this year, though it noted it expected to take a $15 million to $20 million hit from the sweeping tariff policies imposed by President Donald Trump this year. Hershey has requested an exemption from the president and is hopeful it could still receive one, Bloomberg reported.
Further Reading
Hershey Lifts Candy Prices, Citing High Cocoa Costs (WSJ)
Hershey Raising Candy Prices by Double Digits on High Cocoa Costs (Bloomberg)
Hershey to increase candy prices by double digits amid rising cocoa costs (CBS News)
