Prepare for Chocolate Price Increases & Shortages!

Attention chocolate makers: It's time to start paying attention to the significant developments in the cacao market! In recent months, the price of cacao has been steadily increasing, presenting challenges impacting the chocolate, confectionary & bakery industries. This cocoa price surge is driven by a combination of disruptions in the supply chain, the adverse effects of climate change on cocoa-producing regions & an influx in demand for chocolate products. As a result, chocolate manufacturers worldwide are facing heightened production costs.

As shown in the chart below, most cocoa beans are grown in West Africa, with about ⅔ of cacao originating from areas along the Ivory Coast & Ghana. Cacao farmers in these regions have faced extreme weather & a change in climate patterns, resulting in devastating crop harvests. 

As the impact of this surge starts to trickle down to the consumer level, we want you to be prepared for increased expenses. At Stover & Company, we’ve already taken proactive steps to assess our supply chains, explore alternative sourcing options, & implement strategies to mitigate the impact of rising cacao prices on our operations to best offset the impact on our customers. That said, we want to remain transparent with our customers about these inevitable changes. 

While the future of the chocolate industry may seem daunting, we recommend you take these steps to stay ahead of these challenging changes:

Stay informed & follow the stock market. This time last year, cacao prices would fluctuate once or twice a day, now prices teeter up to 12 times a day. 

 Allow your business to adapt. Chocolate prices will surge, but don’t panic! Simply raise your prices accordingly. Revisit your recipes & raise your prices according to how much chocolate is used for each treat - you may be surprised at how little the increase is on a granular level.

Purchase what you need NOW. We foresee shortages in the chocolate industry to affect our customers starting in Q4 of 2024. At this rate, the longer you wait to purchase your chocolate, the higher the price will be or worse, you may not be able to find the products you usually purchase. Don’t find yourself short on chocolate, plan ahead! 

Pivot. If possible, replace some of your chocolate ingredients for a compound coating to offset costs! At this time, the compound chocolate market has not been affected since there is no cacao in the product. Our Sweet Shoppe Melting Wafer line is here to the rescue if you find yourself looking for chocolate alternatives.

We encourage you to plan ahead of price increases & potential product shortages that may develop while we maintain our commitment to the quality & integrity of our products. 

Please contact us at chocolate@stovercompany.com if you have any questions! We look forward to continuing to work together to ensure that the world continues to enjoy the delights of chocolate for generations to come!