reeves84
February 18th, 2003, 11:47:55 AM
http://www.preparedfoods.com/newsletter/articles/0203/0203_2c.htm
The price of chocolate is likely to go up sharply and soon. A civil war in the world's largest cocoa producer, West Africa's Ivory Coast, plus two years of poor harvests, already have pushed wholesale cocoa prices to record highs.
"Everyone's costs are going up," Frank Cerminara, chief financial officer for Pennsylvania-based Hershey Corp., told analysts last month.
To cope, candy companies are likely to shrink portions or use less cocoa and make up the difference with more sugar, nougat, nuts or other cheaper ingredients.
"You can vary the amount of cocoa powder without really affecting the taste," said Hans Scheu, the former head of the Cocoa Merchants Association based in New York City.
Their other option is to raise prices. "People are always willing to pay more for chocolate," said Scheu.
The price of chocolate is likely to go up sharply and soon. A civil war in the world's largest cocoa producer, West Africa's Ivory Coast, plus two years of poor harvests, already have pushed wholesale cocoa prices to record highs.
"Everyone's costs are going up," Frank Cerminara, chief financial officer for Pennsylvania-based Hershey Corp., told analysts last month.
To cope, candy companies are likely to shrink portions or use less cocoa and make up the difference with more sugar, nougat, nuts or other cheaper ingredients.
"You can vary the amount of cocoa powder without really affecting the taste," said Hans Scheu, the former head of the Cocoa Merchants Association based in New York City.
Their other option is to raise prices. "People are always willing to pay more for chocolate," said Scheu.