The reports highlight that the decision to increase prices is not related to trade policies and tariffs
Citing the surge in costs of cocoa, Hershey has informed retailers that it will be taking a double-digit price increase on average across its confection portfolio, Reuters reported. The report noted that discussions with the retail partners are currently ongoing.
The report cited the company spokesperson saying that the decision to increase prices is not related to trade policies and tariffs. It reflects the reality of rising ingredient costs, including the cost of cocoa.
On account of supply problems in Ghana and the Ivory Coast, the prices of cocoa have increased sharply in the last two years, hitting a record in December. The reports emphasised that prices have come down, but still remain above the levels observed earlier in the decade.
Earlier, the company said that it was working to absorb high input costs by adjusting the pricing and pack size together. The reports highlighted that these actions would lead to higher prices in the coming quarters. (With Reuters Inputs)
