Hershey Plans Double-Digit Price Increases Amid Cocoa Cost Surge

The Hershey Company announced it will implement a low double-digit percentage price increase across much of its chocolate portfolio, including popular brands like KitKat, Reese's, Hershey Kisses, and York, due to soaring global cocoa costs. Cocoa prices have surged dramatically in recent years, rising as much as 178% in 2024 alone, driven by supply shortages caused by unfavorable weather, disease outbreaks in West Africa, and insufficient investment in cocoa farms. Despite some price declines from record highs near $12,000 per metric ton, current prices remain historically elevated with no immediate relief expected. Hershey emphasized that the price hikes are unrelated to tariffs or trade policies but stem from unprecedented ingredient cost pressures. The company is also exploring strategies such as adjusting pack sizes and focusing on less cocoa-intensive products to manage input costs. Additionally, new regulations targeting child labor and deforestation in cocoa-producing regions are influencing industry costs and practices.