"Easter shrinkflation hits the chocolate aisle as cocoa surges"

" Easter shrinkflation hits the chocolate aisle as cocoa surges \r\n\r\nBaskets overflowing with chocolate bunnies and pastel-colored marshmallows are a holiday staple, with Americans forecast to spend more than $5 billion on candy this Easter season. But this year, consumers will be paying more for less as cocoa costs continue to surge.\r\n\r\nNot only are prices higher \u2014 those delectable chocolate eggs have climbed more than 10% in a year \u2014 but shoppers who are willing to pay up should also expect to get less for their money. It\u2019s the phenomenon of shrinkflation: when sizes shrink, but you\u2019re paying the same price, or sometimes even more, for the same product.\r\n\r\nCompanies are dealing with an unrelenting drive higher in the cocoa market by reducing the size of their candy bars. They\u2019re also promoting products with less cocoa or that feature other starring flavors, like embracing treats that contain ingredients such as peanut butter or cream.\r\n\r\n\u201cIf consumers haven\u2019t really paid attention to chocolate prices since Christmas \u2014 or certainly since Halloween \u2014 there\u2019ll be a little bit of a sticker shock when it comes to the prices they\u2019re paying for chocolate products on the shelf,\u201d said Billy Roberts, a senior economist for food and beverage at CoBank.\r\n\r\nNew York cocoa futures already closed 2023 with a 61% gain and have continued to surge since. Prices have more than doubled just this year, and hit a record $10,080 a metric ton on Tuesday. The rally\u2019s been driven by a historic shortage of cocoa beans from West Africa, the world\u2019s top growing region.\r\n\r\nThe average unit price of a chocolate egg jumped 12% in the year ending March 9, while sales volumes were down 4.2% in the same period, according to data from consumer researcher NIQ. Broader chocolate sales follow a similar trend, NIQ data show.\r\n\r\nEven though prices are higher, now may not be a bad time to start stockpiling some treats \u2014 especially in the week after Easter when leftover holiday goodies go on sale.\r\n\r\nThat\u2019s because chocolate is typically manufactured well in advance.\r\n\r\nEaster costs are already \u201clocked in, albeit at higher cocoa cost versus last year,\u201d said David Branch, a sector manager at Wells Fargo Agri-Food Institute. But, \u201cthe big increases will most likely come in the future\u201d as the current \u201castronomical prices\u201d kick in.\r\n\r\nThe current Easter candy on shelves from Hershey Co., for example, is planned with retailers a year in advance and isn\u2019t impacted by current costs, said Allison Kleinfelter, a company spokesperson.\r\n\r\nThat means more bad news is probably in store for chocolate lovers during Easter 2025. More than 40% of consumers say they prefer a solid chocolate egg over a filled or hollow one, according to the National Confectioners Association.\r\n\r\nStill, chocolate continues to be an affordable treat for many \u2014 particularly for holidays, which account for nearly two-thirds of all US confectionery sales. Nearly 90% of consumers are planning to buy Easter candy, making it one of the top planned purchases for the holiday, according to the National Retail Federation.\r\n\r\nAnd even with higher prices, \u201cconsumers continue to embrace chocolate and candy as part of their celebrations, occasions and every day,\u201d said Carly Schildhaus, the National Confectioners Association\u2019s director of public affairs and communications.\r\n\r\nDemand for the treats has often proved to be more inelastic than other non-essential goods. After all, while no one technically needs chocolate to live, there are certainly many chocoholics who would beg to differ."

"Easter shrinkflation hits the chocolate aisle as cocoa surges"

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