Chocolate manufacturers reduce the share of cocoa in products due to record prices

Chocolate companies are looking for new development paths against the background of increasing prices for cocoa. Because of this, they are forced to reduce the share of cocoa in their products, Bloomberg reports .

“Everyone seeks to become a more complex player in the field of sweets,” said Nick Modi from RBC Capital Markets, emphasizing that in conditions of pressure on the chocolate market, the company is actively exploring new categories.

At the Conference Consumer Analyst Group of New York, held in Boka Raton, Florida, Hershey published plans for the future. The manufacturer intends to increase production capacities for the production of chewing sweets in 2024 by 50%. Michelle Buck, General Director of Hershey, emphasized that this step will open up new opportunities for the interaction of the company with consumers.

Shakil O'Neill, a new partner for the production of chewing sweets, Hershey, urging customers to support the novelty, joined the statement. “When these products appear on the market, we want you to buy them and invest in them, and so that it is fun for you,” he said, recalling his experience on the development of a product in the company's laboratory.

This decision of Hershey keeps up with a general industrial trend, when, due to rising prices for cocoa, the company is looking for alternative ways, including the offer of goods with a lower cocoa content at all, and the introduction of innovative tastes to attract consumers.

The reasons for rising prices for cocoa are diverse and have a significant impact on chocolate industry. The main factors include crop failures in West Africa - the largest region of cocoa production in the world caused by drought and plant diseases. In addition, structural problems, such as difficulties in logistics and production, also contribute to the supply of supply in the world market. All this led to the fact that cocoa prices reached record heights, forcing chocolate manufacturers to look for ways to minimize costs, including through reforming their products and expanding the assortment outside the traditional chocolate.

Thus, the increase in prices for cocoa stimulates the companies to continue diversification, pushing them to the development of new products and innovative products in order to keep the attention of consumers in the conditions of a constantly changing market landscape.