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Monday, July 21, 2014

Cocoa Prices Lead to Price Hike for Hershey, but Not Local Chocolatiers

Posted By on Mon, Jul 21, 2014 at 11:00 AM

According to Reuters, the country's top chocolate company, Hershey Co., raised its prices for the first time since 2011 by roughly 8 percent on Tuesday, July 15. The hike has been brought on due to "soaring" cocoa bean and butter prices.

Good news for Dandelion Chocolate lovers, however. Because they "buy premium beans at higher price," says Jennifer Roy from the company, they are not affected by the price increase.

Roy also says that the prices they pay for their cocoa beans are not connected to "world market price" and "because we pay far enough above that price that any fluctuation in the world market place doesn't impact us directly."

Mike Litton, owner of Bridge International Company, a commodity trading company that owns The San Francisco Chocolate Factory, tells SF Weekly that the increase on cocoa beans also won't affect them because their ingredients are purchased on "long term contracts, so short term increases [won't] impact operating costs much."

Confectioners at San Francisco's Recchiuti also haven't felt the blow by the raise in cocoa prices, owner Michael Recchiuti says. Because they're not a bean-to-bar and their chocolate comes already made, the hike would not hit them until later.

"Down the road it could affect us," Recchiuti says.

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