Cadbury has taken the “tough decision” to raise the price of its chocolate for a second time and it is not the only brand, with the worst yet to come for consumers.
Cadbury has taken the “tough decision” to increase the price of its standard chocolate block to $7, as soaring costs including energy and cocoa continue to push the popular treat further into “special occasion” territory.
The price of cocoa has more than doubled this year as poor weather conditions in West Africa, the largest cocoa-producing region in the world responsible for 70 per cent of supply, devastated crops.
While large manufacturers like Cadbury owner Mondelēz International have jacked up prices, small chocolate makers are also getting pinched, and a few have already been driven out of business.
“There’s some that have gone under,” said Helen Curtis, who runs boutique chocolate maker Federation Chocolate with her husband just outside of Hobart.
“Everything is becoming more expensive. It’s getting harder to make a product and keep it at a price that people can afford and still allows you to function as a business.”
Ms Curtis said the price of cocoa beans, which make up 80 per cent of the cost of their chocolate, had risen at least 50 per cent over the past two years.
“Our standard block is $11.95 and we are going to have to look at raising that price again shortly,” she said.
“It’s that scary thing if you raise it too much, you scare people away. We know certainly once you get to that $15 for a block of chocolate that’s going to be quite a hard sell.”
According to Ms Curtis, the situation was tough for the “bean to bar” community of Australia — the small, premium chocolate makers sourcing their own cocoa.
Ms Curtis said the situation was tough for Australia’s “bean to bar” community — smaller, premium chocolate makers who source their own cocoa.
