Cocoa crisis: Hershey and other candy giants hike prices

Craig Nigrelli
Hersey says it’s hiking prices by double digits – and other chocolate makers are following suit – as cocoa costs soar to historic highs.
Image credit: Lindsey Nicholson/UCG/Universal Images Group via Getty Images
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Summary

What's happening

Hershey’s is raising the price of its popular chocolates due to the high cost of cocoa.

The numbers

Hershey said to expect a "low double-digit increase" to the price of its products.

What's the cause

Cocoa supplies in West Africa have been affected by heat waves and plant disease, leading to higher costs.

Full story

If you’ve got a sweet tooth, prepare to pay more. Hershey says it’s hiking prices by double-digits – and other chocolate makers are following suit – as cocoa costs soar to historic highs.

What’s driving the price surge?

The Pennsylvania-based candy giant, which owns nearly 100 brands including Hershey chocolate bars, Reese’s, KitKat and York Peppermint Patties, says it’s facing unprecedented costs for raw cocoa. 

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Chocolate suppliers get roughly 70% of their cocoa beans from West African countries such as Ghana and the Ivory Coast.

During the week of July 21, cocoa futures topped $8,000 per metric ton, according to The Wall Street Journal. That’s up more than 70% from five years ago. Most cocoa comes from Ghana and the Ivory Coast, where extreme weather, heavy rain and Black Pod Rot, a crop-killing plant disease, have devastated yields.

A Hershey’s spokesperson told CBS News the price increase is not linked to tariffs or trade policy, but purely to ingredient costs.

“It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,“ the spokesperson said.

Chocolate accounts for roughly two-thirds of Hershey’s business, while non-chocolate candy makes up just 12%.

Last year, CEO Michele Buck warned that inflation was squeezing margins and that rising costs would be passed on to customers. She also hinted at diversifying into “white spaces” like salty snacks and better-for-you treats to broaden the company’s appeal. 

More price hikes ahead?

To cushion the blow, Hershey has locked in future cocoa purchases at fixed prices through long-term contracts, but elevated prices are expected to remain for the foreseeable future.

It’s not just Hershey. Swiss chocolate maker Lindt & Spruengli and Mondelez, the parent company of Cadbury and Oreo, have also raised prices – citing the same cocoa crunch. 

Industry analysts say the supply issues in West Africa aren’t going away anytime soon, which means your favorite chocolate fix could keep getting more expensive. 

Craig Nigrelli
Craig Nigrelli
Craig Nigrelli is an anchor and reporter for Straight Arrow. As the face of Unbiased Updates and Media Miss Minute, he delivers concise, impartial, fact‑based context grounded in 35 years of reporting and anchoring across major U.S. markets.
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Why this story matters

Hershey's decision to increase the prices of its chocolate products due to unprecedented rises in cocoa costs highlights the global impact of commodity shortages and climate change on consumer goods.

Rising cocoa costs

According to multiple sources, cocoa prices have sharply increased due to poor harvests, climate impacts, and crop diseases in West Africa, putting significant pressure on chocolate manufacturers.

Consumer price increases

Hershey and other major chocolate producers are passing higher ingredient costs onto consumers through double-digit price hikes, as reported by the company and several news outlets.

Global supply chain challenges

As stated by Hershey and referenced by industry analysts, ongoing issues such as climate change, chronic underinvestment, and plant diseases in major cocoa-producing regions demonstrate the vulnerability of global supply chains.

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Context corner

Cocoa production is concentrated in West Africa, with Ghana and Ivory Coast supplying most of the world’s cocoa. Climate change, plant disease, and underinvestment have led to poor harvests, making the commodity price volatile. This context helps explain the supply-driven price hikes and their ripple effects on global chocolate markets.

Debunking

The claim that Hershey’s price increases are due to tariffs or new trade policies is contradicted by multiple sources and direct company statements. Hershey spokespeople consistently clarify, “this change is not related to tariffs or trade policies. It reflects rising ingredient costs including the unprecedented cost of cocoa.”

Do the math

Cocoa prices rose 178% in 2024 following a 61% increase in 2023. In June, the price stood at $8,402 per metric ton, up from five years earlier. Hershey expects price increases in the “lower double-digit range,” with approximately 75% of products remaining under $4. Hershey anticipates $15 million to $20 million in tariff costs in Q2, though these are unrelated to cocoa prices.

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Sources

  1. CBS News
  2. The Wall Street Journal
  3. Yahoo Finance

Bias comparison

  • Media outlets on the left vividly frame Hershey’s double-digit chocolate price hike as a consequence of climate change-driven supply crises and broader environmental degradation, emphasizing terms like “unprecedented cost” and highlighting strategic shifts toward “less cocoa intensive” products to stress the sustainability challenge.
  • Not enough unique coverage from media outlets in the center to provide a bias comparison.
  • Media outlets on the right focus more on quantifying the price jump with phrases like “double digits” and “hike,” sometimes defending market fundamentals by dismissing tariffs and avoiding environmental factors, thus projecting skepticism toward regulatory or activist explanations.

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Media landscape

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64 total sources

Key points from the Left

  • Hershey Company is raising candy prices due to rising cocoa costs, with a spokesperson stating it will be a "low double-digit increase" across its products.
  • The Federal Reserve Bank of St. Louis reported cocoa prices at $8,402 in June, which is a 73% increase from five years ago.
  • Tracey Allen from J.P. Morgan explained that issues like climate change and chronic underinvestment are affecting cocoa production, leading to higher prices.
  • Hershey plans to focus on less cocoa-intensive products while maintaining strong demand for its existing lines, according to Michele Buck, the company's president.

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Key points from the Center

  • On Tuesday, Hershey revealed plans to increase prices on its chocolate products by a low double-digit percentage, attributing the hike to the rising cost of cocoa.
  • The price increase follows a sharp surge in cocoa futures, which soared 178% in 2024 and reached a record $12,646 per metric ton in December.
  • Cocoa supply issues in Ghana and Ivory Coast, worsened by hotter heat waves linked to climate change, have contributed to these rising costs.
  • Hershey CEO Michele Buck explained the company will combine price and package size changes, known as shrinkflation, to offer consumers better value despite higher prices.
  • This price adjustment, unrelated to tariffs, reflects broader industry challenges with elevated cocoa costs and is expected to continue impacting prices in 2025.

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Key points from the Right

No summary available because of a lack of coverage.

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Other (sources without bias rating):

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Sources

  1. CBS News
  2. The Wall Street Journal
  3. Yahoo Finance