Large chocolate manufacturers like Hershey and Nestle have announced as much as 10% price increases on wholesale prices this fall. Lots of small players are in the process of raising prices to retailers. It seems rising gas prices, wages, and unfavorable exchange rates are some factors causing the need for rising prices.
Perhaps the biggest reason is the sharp jump in commodity prices on cocoa. El Nino, a reoccurring weather condition, it seems might effect the West African crop causing severe shortages at a time of rising consumer demand. Therefore it just might cause Hershey and others to pay more for the raw ingredients. All this is speculation of course but prices probably will not jump sharply for this Halloween.
Halloween Candy Prices Probably Not Affected For 2014
Hershey is allowing current distributors and wholesale customers to buy product at the old prices until August 12th. This will likely get us consumers through Halloween. Most large retailers already have their Halloween and Christmas candy orders in at the old prices.
In 2015, all bets are off as to how much your favorite chocolate candy bar might rise in price. Price increases will at some point be passed on to the consumer.
Hershey which has 43 percent of the domestic chocolate market announced sales increases of 9%. I am glad Hershey is doing so well. Reeces Peanut Butter Cup is my favorite followed closely by those little Hershey Kisses. Along with Nestle and Mars it might be said that these three companies “control” the chocolate market in the United States. Prices at the three tend to go up together.
Demand has continued to rise for chocolate products as all three major companies are moving fast into new markets such as China.