Harshe company on Tuesday confirmed media reports that it was raising candy prices as it fights Cost of rising cocoa,
According to Harshe spokesperson, the price change will “increase low double digits” and affect the products in the company’s confection portfolio. Established in 1894, Pennsylvania -based company owes more than 90 Brands Harshe Kis, including KitKat, Reese and York.
The spokesperson said in a statement to CBS News, “This change is not related to tariffs or business policies.” “It shows the reality of Rising component cost Including unprecedented costs of cocoa. ,
The spokesperson said that the price usually takes about 90 days to be effective, although the deadline varies by the retailer.
Lack of global cocoa
Coco prices have skyrocketed in recent years due to lack of global cocoa. The cost of commodity in June was $ 8,402, an increase of 73% from five years ago, According Data from Federal Reserve Bank of St. Louis, which tracks food prices.
Most of the world’s cocoa supply comes from Ghana and Ivory Coast, which has faced heatwave and heavy rains associated with climate change. These adverse weather conditions have given rise to diseases like black pod rot, which kills cocoa crops. Chronic underworks in Coco Farms is another reason behind the spike in the prices of Cocoa, According JP Morgan for an article of Global Research.
“Coco is a market where the producer produces very high-value, but receives very little part of the actual price chain. As a result, the rates of diseased trees are low and have been more subject to the effects of West African African Yields weather,” said an agricultural commodity strategist Tracy Allen in JP Morgan.
Harshe Company President Michel Buck said in the May earnings that the candy company would be bent into products that are “less cocoic” as it navigates the inflation of coco prices. It is part of the company’s vision to become a “snacking powerhouse”.
“We love our chocolate business and we want to continue to grow it,” Bak said. “But we also know that if we come to white places like sweets, better than-you and salty, it connects the older consumers and opportunities,” he said.
Harshe share prices were 2.8% after a closed bell on Tuesday.
