• Hershey to implement a low double-digit price increase on its candy portfolio.
• The increase is driven by unprecedented cocoa costs not linked to tariffs.
• Cocoa prices have surged due to supply issues in West Africa.
• The company expects the price changes to affect popular brands like Reese's and Kisses.
• CEO Michele Buck indicated a shift towards less cocoa-intensive products amidst rising prices.

The Hershey Company has announced a low double-digit price increase across its confection portfolio due to escalating cocoa costs. A spokesperson confirmed that this adjustment stems from "the reality of rising ingredient costs including the unprecedented cost of cocoa," and it will affect many products including Hershey's Kisses and Reese's Peanut Butter Cups, as discussions with retailers continue according to Reuters and CBS News.

The price adjustments come as global cocoa prices have risen significantly over recent years, attributed to various factors such as supply shortages from Ghana and the Ivory Coast, linked to severe heatwaves and diseases like Black pod rot, which damage crops. Current cocoa pricing is three times higher compared to levels recorded in 2022, creating an urgent need for Hershey to adapt, as noted by Newsweek and CBS News.

Despite previously absorbing increased input costs and maintaining a portion of their product catalog under certain price points, Hershey's management anticipates significant pressure on earnings moving forward. The company noted this price escalation is not influenced by tariffs or trade policies but directly linked to climbing ingredient expenses. "We've worked hard to absorb these costs," a spokesperson remarked, emphasizing their commitment to keeping products accessible according to Reuters and Newsweek.

CEO Michele Buck indicated during the most recent earnings call that plans to pivot towards less cocoa-intensive products are part of a broader strategy to stabilize in a volatile market. "We love our chocolate business and we want to continue to grow that," Buck stated, signaling a commitment to diversifying the product line amidst challenges, as reported by CBS News and Newsweek.