It’s time to stock up on this sweet treat according to economists

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The price of everything is going up thanks to Biden’s inflation, but a bad crop can cause a huge price spike in certain commodities.

For instance, two years ago a bird flu caused egg prices to rise, and bad weather can cause coffee prices to spike.

But now this popular treat is going to have a price explosion because a strange disease is killing some trees.

Chocolate prices are soaring

Cocoa prices have more than doubled this year already, reaching over $10,000 a ton.

Conditions contributing to the surging prices include a third year of shortages of cocoa beans that come from West Africa, the world’s top-growing region.

Unseasonable weather and crop diseases have killed trees in many parts of Africa, making cocoa beans a hot commodity.

Godiva’s Chief Executive Officer, Salman Amin, said, “We are in an era of volatility,” adding that wheat, palm oil, sugar, and dairy are ingredients the company needs to make its products, in addition to cocoa.

Each of these valuable commodities has seen instability in recent years, and Amin said Pladis Foods, Godiva’s parent company, is still working on pricing plans, but it expects prices to increase in the “high single digits” globally.

Amin noted that he expects some customers will stop purchasing Godiva products altogether and sales will decline, saying, “We are planning for that.”

Currently, an assorted box of 18 Godiva chocolates weighing 7.75 ounces retails for around $36, according to the company’s website.

The company said final pricing will ultimately be up to individual retailers. 

Godiva’s portfolio includes other well-known brands, including the candy brand Turtles, the pretzel brand Flipz, the cookie brand McVitie’s, and cracker brands Carr’s and Jacob’s.

Amin said that ongoing “geopolitical disruptions” have made supply chain challenges more difficult, and the company is examining ways to try and manage those challenges while trying to hedge risks.

The CEO said Pladis’ cocoa supply is “OK” this year, but costs are “all over, at different price points” since the ingredient was secured a year ago from different locations.

He added, “Even if you were to look at the median price [that] we are buying it at, it is significantly higher than what we would have been buying a year ago.”

Prices will likely remain high

Amin added that the price of cocoa is “not a blip,” and he does not expect prices to lower or change much before the end of 2025.

Pladis plans to diversify where it sources its cocoa, but most cocoa farms are small plots owned by individual farmers.

This makes finding new sources of cocoa beans challenging, and bringing in cocoa from new regions means that each source has different taste profiles that could require Godiva to use new recipes for their popular products.

Wheat is another commodity facing a difficult market, and the Russian invasion of Ukraine has Pladis seeking alternative grains, including lentils, rice, and whole grains.

Amin concluded, “Broadly, I expect we’ll want to have more sources of supply than we have today.”

Informed American will keep you up-to-date on any developments to this ongoing story.