(Reuters) -Hershey has told retailers it will be taking a double-digit price increase on average across its confection portfolio due to a surge in costs of cocoa, a company spokesperson said on Tuesday.
The maker of Reese’s Peanut Butter Cups declined to comment on the specifics of the pricing action as discussions with its retail partners are underway.
“This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” the spokesperson said.
Cocoa prices have risen sharply in the last two years and touched a record in December due to supply problems in Ghana and the Ivory Coast. Since then, the price of cocoa has fallen to an eight-month low, though it remains above levels seen earlier in the decade.
During Hershey’s quarterly earnings call in May, CEO Michele Buck said the company was working to absorb high input costs by adjusting the pack size and pricing together, especially on seasonal items.
These actions would lead to higher prices in the second and third quarter, she had said.
(Reporting by Savyata Mishra and Anuja Bharat Mistry in Bengaluru; Editing by Alan Barona and Devika Syamnath)
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