Cocoa Shortages and Rising Prices Put Squeeze on Chocolate Makers

Cocoa prices have surged to record highs, presenting challenges for chocolate makers like Hershey as costs rise.

Hershey has raised prices but sold fewer sweets last quarter as consumers pushed back, showing limited pricing power.

Cocoa supply shortages are expected to continue next year, leading to more "shrinkflation" of chocolate bar sizes.

Food price inflation is cooling overall, but volatility remains and cocoa costs keep climbing for candy makers.

Even as inflation slows, prices remain far above pre-pandemic levels, leaving consumers unhappy with the high costs of basics like chocolate.