Mondelēz International and Hershey have indicated that persistently high cocoa prices are expected to impact their operations throughout 2025. Mondelēz, the maker of Oreo and Toblerone, estimates that higher cocoa costs and inflation could reduce its adjusted earnings per share by approximately 10% this year. The company has also noted the potential need to raise prices in 2025 or 2026 if cocoa costs continue to rise.
Despite the challenges, Mondelēz remains focused on maintaining its market share and protecting brand investments. The company acknowledges that cocoa prices will likely stay high in the short term but anticipates a decrease from current levels over time.
Cocoa prices have surged, more than doubling since the end of 2023. This increase is attributed to supply constraints caused by weather, crop diseases, and strong consumer demand.
In 2024, chocolate sales reached a record $21.4 billion, with 65% of consumers indulging in the confection, according to data from the National Confectioners Association.
Hershey has also expressed concerns about the impact of rising cocoa prices on its 2025 earnings. The company has diversified its cocoa supply, with nearly half of its production now sourced from regions outside Ivory Coast and Ghana. Additionally, Hershey has made investments in West Africa to support its supply chain.
Both companies continue to monitor market conditions and adjust their strategies accordingly, as the cocoa market remains volatile.
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