Expensive cocoa

The next price shock looms for chocolate this year

11,000 instead of 2000 US dollars: Cocoa became significantly more expensive.(Bild: APA/AFP/Issouf SANOGO)

The cost of cocoa on the global market is at record levels. After a strong price surge on supermarket shelves last year, prices are likely to rise again this year. Ritter Sport, Austria's number three, has already announced that it will raise its selling price "in the low double-digit percentage range" towards the middle of the year. Milka did not increase the price recently, but reduced the size of the packs.

After flowers, sweets are the second most popular Valentine's Day gift. According to the trade association survey, just under one in four respondents want to give pralines & co. this year. However, consumers will have to dig much deeper into their pockets than in the past. "We had to raise our selling price by 25 to 30 percent last fall," explains Wolfgang Stöhr, Managing Director of Ritter Sport Austria.

Ritter Sport Austria boss Wolfgang Stöhr: "We are the clear market leader in vegan chocolate".(Bild: APA/ROLAND SCHLAGER / APA / picturedesk.com)

The reason: the price of cocoa has exploded on the world market, mainly due to several poor harvests (for example in West Africa). Around 80 percent of the world's cocoa comes from Ghana and the Ivory Coast, both of which are in West Africa. Whereas a tonne used to cost around 2,000 US dollars, it currently costs around 11,000 US dollars (depending on the trading center).

Because the price increases have only passed on a small part of the enormous rise in costs, chocolate manufacturers' profits are also falling. This is also confirmed by the Ritter Sport manager.

At the same time, it is also necessary to tighten the price screw this year. "We are still calculating, but it will probably be an increase in the low double-digit percentage range," says Stöhr. The selling prices to retailers are likely to be raised accordingly in the first half of the year or in the middle of the year. The manager cannot say what impact this will have on sales prices in supermarkets. It is quite possible that retailers will not pass on the entire increase to customers.

Ritter Sport hit the Dubai chocolate trend head on with the new pistachio variety launched this year.(Bild: Ritter Sport)

Ritter Sport, the number 3 in our country, has grown faster than the market for chocolate bars in 2024, according to its own figures. The vegan varieties are doing exceptionally well. With a market share of around 40 percent, they are clearly number one in Austria. With new trend varieties, such as pistachio (keyword "Dubai chocolate", available since January) or Amicelli (on sale from May), the company has its finger on the pulse of the times.

In total, Austrians spent around 238 million euros (+8%) on chocolate in the food retail sector last year. However, the volume fell by 3.7% to 18,700 tons.