Consumer
KitKat Maker Sees Chocolate Demand Ebbing as Cocoa Costs Creep In
- KitKat maker says cocoa crunch will filter through to prices
- Chocolatiers that secured supply in advance have been shielded
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Consumers will probably cut back on chocolate as this year’s historic cocoa rally gradually trickles down to manufacturers and forces them to raise prices, a Nestle SA executive warned.
Cocoa futures have more than doubled this year on the back of a huge global shortage, making it more expensive to produce confectionery. But shoppers are yet to feel the full impact because chocolatiers secured and hedged supplies at lower prices — and companies will inevitably have to start passing on higher costs, said Mark Davies, managing director at Nestlé Confectionery UK & Ireland.