The Problem with Rising Chocolate Prices

January 3, 2014

Baker's Boutique of Grand Junction, Colorado, makes use of an array of cocoa products when baking. They use it in making the batter, icing, as well as ganache in their infamous chocolate truffle cupcake. Callie Ash, Baker’s Boutique owner, says that it’s no surprise that they are affected when the price of raw materials shoot up. Price increases affect those who try to keep the prices of their products low.

Ash says it’s all about balancing raising prices at the burden of the buyer or taking a hit to their profit margin. Since they pre-ordered for the holiday season, their prices can luckily remain low. However, if reordering is called for, then they would be compelled to pass the price increase to the consumer.

Enstrom Candies, on the other hand, will have steady cocoa prices until next year. That said, the price of your favorite box of chocolate covered toffee for the holidays should remain as is. "We buy chocolate on a contract basis, so we lock our prices in kind of a year in advance," said Patrick Zachary, of Enstrom Candies, which has several Colorado retail locations. "But next year when we're looking at prices, we'll definitely see an increase."

Cocoa only grows within ten degrees north and south of the equator.  This is a narrow area beleaguered by political issues in many parts of the globe, Zachary claimed. Such issues, on top of environmental factors can take their toll on cocoa farmers and production, which may end up in cocoa shortages and rising prices.

Almost every commodity these days continues to increase in price. I want to say it’s inevitable, but it isn’t. It’s all a matter of prioritizing, then. And you all know chocolates have been, and always will be, included in my top priorities. How about you? Are you willing to sacrifice your favorite treat in an attempt to be frugal?

Joanna Maligaya
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