Cocoa Versus Chocolatiers, Sour Profits Amid High Prices: BI Replay
Time to revisit the best performing commodity of 2024. Will chocolate makers’ wish to leave profit pressures behind come true? Heading into 2025, we believe the outlook for chocolatiers such as Hershey and Barry Callebaut could further deteriorate. Higher price increases, low demand and high costs create the perfect storm for profit downgrades as cocoa is poised for higher prices for longer. Structural production challenges in West Africa extend fears of a fourth consecutive deficit, leaving little hope for a respite from surging costs after cocoa prices almost tripled in 2024. As always, there will be opportunities for Q&A.