Worst of the Cocoa Rally Is Yet to Come for Chocolate Makers
- Poor crops in West Africa sent futures to highest in 46 years
- Commodity price gains yet to fully be passed on to consumers
Hershey chocolate candies move along a conveyor at the company’s factory in Hershey, US.
Photographer: Ryan Collerd/BloombergThis article is for subscribers only.
The world’s largest chocolate makers are yet to see the full impact of a rally that sent cocoa futures to a 46-year high.
Companies including Hershey Co. and Nestle SA usually buy cocoa well in advance. As supplies run out and prices remain high, chocolate makers are being forced to pay up — a cost they will eventually pass on to consumers.