Cocoa Cost Crunch: Chocolate Giants Hershey, Mondelez Reportedly Shift Easter Focus To Sweeten Profits
Portfolio Pulse from Shivani Kumaresan
Hershey Company (HSY) and Mondelez International Inc (MDLZ) are adjusting their strategies to cope with the impact of rising cocoa prices on profits, especially ahead of Easter. They are shifting focus towards non-chocolate treats and upscale Easter offerings to maintain sales amidst cocoa cost increases and consumer reluctance due to inflation. Despite the challenges, both companies are optimistic about maintaining Easter sales levels through strategic pricing and product focus.
March 26, 2024 | 4:10 pm
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Hershey is adapting to rising cocoa prices by focusing on non-chocolate Easter treats and maintaining traditions to preserve sales.
Hershey's strategy to adapt to rising cocoa prices by focusing on non-chocolate treats and maintaining traditional sales could help stabilize its stock in the short term. The emphasis on preserving Easter sales through strategic product focus and pricing, despite rising costs, indicates a proactive approach to mitigating profit pressures.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Mondelez is shifting its Easter focus towards upscale offerings to counteract the impact of rising cocoa prices on profits.
Mondelez's strategy to focus on upscale Easter offerings as a response to rising cocoa prices demonstrates an attempt to leverage premium products to maintain sales and profits. This approach, targeting consumers willing to pay more for premium chocolate, could help offset the impact of increased costs and consumer price sensitivity.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90