(NewsNation) — Hershey is raising its candy prices as it grapples with the high costs of ingredients, mainly the price of cocoa.
The Pennsylvania-based candymaker told its retailers that it would be applying a roughly double-digit price increase. The increase reflects a higher list price as well as adjustments to the weight and number of candies in a bag, which is known as shrinkflation.
A spokesperson for Hershey said the price hike is not related to tariffs or trade policies, and that it’s only related to cocoa prices. The company has previously asked the government for a tariff exemption on cocoa.
According to Trading Economics, cocoa futures have risen to more than $8,100 per ton. That increase is being driven by supply issues in the wake of poor weather and disease in Ivory Coast and Ghana, which together account for more than 60% of the global supply.
Swiss chocolatier Lindt implemented a nearly 16% increase on its products back in March due to rising cocoa prices. The company’s chief financial officer told Reuters that going forward, more price increases will be needed.
