Hershey to raise chocolate prices amid soaring cocoa costs, CEO transition 

USA – The Hershey Company has informed retailers that it will implement a double-digit average price increase across its confectionery portfolio, citing a surge in cocoa costs. 

The price adjustments are not linked to tariffs or trade policies, but rather reflect the growing financial burden of sourcing key ingredients. 

“This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” a company spokesperson told Reuters. 

Cocoa prices have experienced significant volatility over the past two years, reaching record highs in December due to supply constraints in key producing nations Ghana and Ivory Coast. Although prices have since dipped to an eight-month low, they remain elevated compared to historical levels. 

Weather conditions in West Africa have shown slight improvement, but industry experts expect cocoa output in the region to drop by another 10 percent in the 2025–2026 season, further straining global supply and pricing. 

During its May earnings call, Hershey announced it would also modify its “price pack architecture,” a term used to describe reducing product size without changing the package price—a strategy often referred to as “shrinkflation.” CEO Michele Buck explained the move as a way to balance pricing and consumer perception. 

“It’s not a direct price point increase, but rather, it’s kind of a combination of sizing and price, which can tend to offer perhaps a better value perception for consumers,” Buck said during the call. 

Other chocolate makers, including Lindt and Mondelez International, have also raised prices in response to the ongoing cocoa crisis. Lindt cited record-high cocoa costs and weakened consumer sentiment, while Mondelez pointed to similar pressures driving its chocolate price adjustments. 

The news of Hershey’s price increase follows the recent announcement of Kirk Tanner’s appointment as the new president and CEO, effective August 18, 2025.  

Tanner currently serves as CEO of The Wendy’s Co., a position he took in February 2024. He will replace Michele G. Buck, who is retiring after nearly 20 years with Hershey.  

Buck led the company through a transformation into a broader snacking business, acquiring brands like Dot’s Pretzels, Pirate Brands, and Amplify Snack Brands during her tenure. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.