Escalating cocoa prices are sending shockwaves across various sectors, impacting not only pure chocolate makers but also big players like Amul, Baskin Robbins, and Kellanova.
With cocoa prices doubling this year due to crop diseases in major cocoa-producing countries like Ivory Coast and Ghana, consumers are bracing for significant price hikes in chocolates and chocolate-containing products such as cookies and ice-creams.
As per information reported, Amul is considering a price hike of 10-20% for its chocolates, reflecting the drastic increase in cocoa prices, which reached over $10,000 per tonne. While institutional players using vegetable fat may not feel the pinch, companies relying on pure chocolate are grappling with the challenge.
As cocoa prices hit a 45-year high, manufacturers are compelled to adjust pricing strategies, potentially leading to substantial price increases for consumers. Despite efforts to mitigate the impact, including passing on gains to cocoa growers, the surge in cocoa prices heralds bitter times for chocolate lovers, signalling higher costs ahead.
Mayank Shah, Vice-President of Parle Products, stated that with the unprecedented surge in cocoa prices, no company could absorb such a significant hike. He indicated that within the next 1-2 months, there could be substantial price increases for products containing cocoa as a key ingredient. Shah mentioned that they are closely monitoring the situation and might need to implement initial price hikes of 10-15% to manage the volatility in cocoa prices.
Meanwhile, Shashank Mehta, Founder and CEO of The Whole Truth Foods, highlighted on LinkedIn that cocoa prices are at their highest level in 45 years. Consequently, the company has decided to halt the production of milk chocolates and increase the prices of dark chocolates.
