Hershey's iconic chocolates, such as Reese's Peanut Butter Cup and Kit Kat, which are only produced by the firm in the US, have officially been struck by a price hike.
On Tuesday, July 22, the confectionery company told its retail partners it is raising prices by a percentage in the "lower double-digit range."
The decision to put an increased price tag on the chocolate products is due to high cocoa prices.
According to data from FactSet, cocoa futures rose a shocking 178% in 2024 after a 61% increase in 2023.
This is because Ghana and Ivory Coast, which account for almost 60% of the world’s cocoa production, have been hit by poor harvests due to weather exacerbated by climate change.
Hershey noted in its official statement that the price increase is not related to tariff or trade policies. In its earnings call in May, Hershey said it anticipated $15 million to $20 million in tariff costs in the second quarter of the year.
A company spokesperson shared that the price increase "reflects the reality of rising ingredient costs including the unprecedented cost of cocoa."
"[For years,] we've worked hard to absorb these costs and continue to make 75% of our product portfolio available to consumers for under $4.00," they added.
In its earnings call in May, the company also revealed that it would adjust its "price pack architecture," which basically means reducing the amount of product in a package.
