Hershey’s today made an announcement that they will be engaging in double digit price increases and amazingly made the following statement as quoted in a Reuters article via the NY Post:
Hershey has told retailers it will be taking a double-digit price increase on average across its confection portfolio due to a surge in costs of cocoa, a company spokesperson said Tuesday.
The maker of Reese’s Peanut Butter Cups declined to comment on the specifics of the pricing action as discussions with its retail partners are underway.
“This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” the spokesperson said.
There is some truth to this statement as indeed cocoa prices were at all time highs, and still are, if one looks at the charts.
First year to date:
If one is to believe the nonsense emanating from this administration, the strong dollar should offset this price increase and historically sudden shortages shouldn’t hurt US consumers based on the chart above. Then again, there is a thing called “history” and here’s a 50 year plus chart to provide perspective:
Uh, that doesn’t look so hot compared to three years ago.
But don’t worry, per Hershey’s who is desperate to avoid the Wrath of the Orangeman, tariffs won’t add to the rise in prices.
Then again, April 2nd didn’t happen either.
First up Ghana on Trump’s Chart of Stupidity:
I’m not an expert, but I can count cards and do basic math, and 10% looks higher than 0%. No big deal, right?
After all, I’m sure the people of Ghana are dying to crowd into local dealerships and buy Dodge Challengers or Ford F-250’s plus Whirlpool dishwashers after they get through cutting down all that cocoa by hand for our chocolate manufacturers.
Good thing we can always increase imports from the Ivory Coast, right?
Again, last I checked 21% is much higher than 0% and the reason the imports from the US are at 41% is the poor farmers there have to protect their markets from US subsidized agricultural products like corn, wheat, etc.
According to Hershey’s and this administration the American public is not to believe that the tariffs will not be inflationary in the short term or that a 21% tariff on raw cocoa on top of already strained supplies will not impact consumers. Buckle up because this is before the final numbers on these poorer nations has even been announced.