US firm expects rising costs to hit profits and sales as consumers cut spending on treats
The US chocolatier Hershey has warned on profits and sales after a sharp increase in the cost of cocoa to record levels pushed up the price of chocolate, hitting cash-strapped consumers in the pocket.
Global cocoa prices hit a new peak of $5,874 (£4,655) a ton on Thursday in New York as dry weather continued to affect crops in west Africa, with poor harvests driving up prices in the region, which produces the majority of global supply.
In London, cocoa prices rose 7.3% to a record £4,660 a ton, more than double the £2,023 a ton a year ago.
Hershey, one of the world’s biggest chocolate companies and the maker of products including Reese’s Peanut Butter Cups, warned that cocoa prices were expected to limit earnings growth this year.
