Chocolate prices could soon be on the rise thanks to cocoa hike
The price of chocolate in Australian supermarkets could soon go much higher and it is all for one very simple reason.
Food
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Chocolate is one of the rare creature comforts that still seems affordable in 2024 but that could soon change.
In the last week alone, cocoa prices hit a record $8,643 per metric tonne — a 238 per cent increase on this time last year.
It’s caused overseas companies who take the raw cocoa and prepare it for chocolate brands to cut production.
But it doesn’t necessarily mean the cost of your favourite items at the supermarket are going to go through the roof.
Australia’s biggest chocolate retailers, Cadbury and Nestle, say there are many reasons that chocolate prices go up and there but they do their best to keep them as low as possible.
“Changes to the price at which we sell chocolate are only made after carefully considering all the variables, of which the price of cocoa is a considerable factor, but it is just one. Our priority is continuing to deliver the delicious products that people know and love – at an affordable price,” a Nestle spokesperson told news.com.au.
“Ultimately, the price at which retailers sell our products to consumers at the shelf is at their discretion.”
A Cadbury spokesperson said just like other food companies the chocolate maker was seeing higher prices across the supply chain, particularly with key ingredient costs.
“At the same time, we understand the economic pressures that consumers continue to face so we work hard to absorb these continuing cost increases where possible,” the spokesperson said.
“In order to continue to provide consumers with the brands they love, without compromising on the great taste and quality they expect, we have a range of actions we can take when necessary to ensure ongoing supply which may include a mix of list price increases, changes in pack sizes, and/or changes in the mix of products and promotions across markets.”
Australian supermarkets also weighed in.
Representatives from both Aldi and Coles said the supermarkets worked closely with suppliers to keep costs low.
“Over the last year, the prices of commodities required to produce chocolate have increased,” an Aldi spokesperson said.
“Aldi works hand-in-hand with its supply partners to deliver the best value and highest quality products to Aussie shoppers. It’s always our ambition to keep prices as low as possible.”
The Coles spokesperson said price increases are reviewed on a case-by-case basis.
“While retail prices can change due to increases on commodity and raw material costs, such as cocoa in this case, we review all cost increase requests on a case-by-case basis to ensure we manage market pressures accordingly and support our suppliers, while also providing competitive prices for our customers,” the spokesperson said.
The concern around chocolate prices rising comes after a social media storm in a teacup over a photo of a stack of 250-gram Cadbury Easter bunnies priced at $10 a pop.
The post sparked plenty of reaction on social media, with many taking aim at the price per kilo cost.
“I just noticed shopping today the price is now [per] 100g and not kg. These are 40 bucks a kilo!” one wrote.
Another said: “$40 per kilo! Not just outrageous, that’s theft.”
But a Cadbury spokesperson reassured news.com.au at the time the chocolates were the same price as they were in 2023, the image shows the very real fear shoppers have about rising prices.
Nestlé confirmed one of its products had shrunk — the mini KitKats — due to the cost of supplies but the regular chocolate bar remained untouched.
“We did that about six months ago now, we found ourselves in a situation where basically everything we need to make KitKat has been increasing in price for the last couple of years,” a spokesperson told 3AW.
“Cocoa is at record prices, sugar has gone up significantly. Transport and shipping are well above inflation and wages and energy have all gone up too.”
Originally published as Chocolate prices could soon be on the rise thanks to cocoa hike
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