"High cocoa prices are forcing chocolate makers into a bind: hike prices and lose sales to cheaper sour gummies this Halloween. Halloween is the season when chocolate thrives, but recent data show chocolate sales plummeted 6% while non-chocolate candy surged 8.3%. Chocolate companies are fighting back with gummy products, limited-edition flavors, and aggressive promotions to reclaim their holiday market dominance."
"It's the latest example of demand destruction as the chocolate industry is grappling with high prices amid a precarious supply outlook. While cocoa futures in New York have slumped about 50% from a record set in December, they're still historically elevated. Chocolate makers are hoping nostalgia during the Halloween season can offset the broader shift away from their products. "Chocolate is chocolate," said David Branch, a sector manager at Wells Fargo Agri-Food Institute."
Halloween accounts for nearly 18% of annual U.S. candy sales, making it crucial for candy makers. High cocoa costs have prompted chocolate companies to pass higher input prices to consumers, contributing to a 6% decline in chocolate candy volumes in the 12 weeks ending Oct. 5 while the average price per pound rose nearly 14%. Non-chocolate Halloween-themed candy volumes increased 8.3%, creating an opening for rivals with cheaper, trendier sweets such as sour gummies. Cocoa futures have fallen from record highs but remain historically elevated. Chocolate makers are responding with gummy line extensions, limited-edition flavors and aggressive promotions to regain market share.
Read at Los Angeles Times
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