Mondelez and Hershey See Chocolate Prices Rising Up to 50% on Cocoa Surge

Executives from Hershey Co. and Mondelez International Inc. signaled more price increases may be coming as the chocolate makers navigate a sustained rise in cocoa prices, reports Bloomberg.

“We have taken and are taking aggressive action to manage the commodity environment that we’re in,” Hershey Chief Financial Officer Steve Voskuil said during a presentation at the Consumer Analyst Group of New York conference on Tuesday.

Voskuil noted that much of the company’s US confection products saw a “double-digit price increase” last year. Though the company won’t comment on future hikes, “you can imagine this is going to be important to us as we look to the future and watch what’s happening in commodities,” he said.

At a different presentation at the same event shortly afterward, Mondelez Chief Executive Officer Dirk Van de Put said the maker of Milka and Toblerone chocolate is keeping an eye on demand levels as it implements “significant price increases.”

Van de Put added that “consumers will need to get used to chocolate that is 30%, 40%, 50% more expensive than it used to be.” He said that even at higher prices, he expects sales volumes to hold up.

Chocolate’s pricing stands in contrast with other consumer goods, where inflation-weary consumers have led companies to largely halt price increases or even started offering discounts.

But cocoa prices nearly tripling last year has put pressure on Mondelez and Hershey in recent months. Mondelez shares declined nearly 14% over the last half-year, while Hershey’s stock has declined about 17%.

Hershey shares rose 3.2% on Tuesday, reaching the highest level in more than month. Mondelez stock rose less than 1%.