Chocolate makers’ prospects sour as cocoa prices spike

Tough trading: A convenience store owner in Argentina raises the price of chocolate bars in his store. The price of cocoa and sugar, the major ingredients in chocolate, have risen sharply this year. — Reuters

CHOCOLATE makers like Hershey and Mondelez face tougher trading conditions over the next year as they attempt to pass on soaring cocoa costs to cash-strapped consumers who are cutting back.

The industry has enjoyed bumper profits over the past couple of years as demand for chocolate held up despite price hikes, but data seen by Reuters shows this trend may be breaking just as prices for cocoa hit 46-year-highs and sugar prices are near their highest in more than a decade.