According to Reuters, American retailers may not offer as much chocolate this Halloween due to rising cocoa prices. Manufacturers are shifting their production focus to gummies and licorice, potentially disappointing kids who were expecting a plentiful supply of chocolate treats for the upcoming holiday.
Circana, a market research company, reported that US candy companies are decreasing the amount of Halloween chocolates on shelves and doubling down on selling cheaper gummies and licorice. Despite a double-digit price increase in these candies, they still remain cheaper than chocolate based on Circana’s data.
Profit shrinkage and slower sales have led chocolate manufacturers to reduce production, prompting consumers to turn to gummies, licorice, and flavored caramels.
Candy companies are facing a double blow, first with disrupted supply chains during the COVID-19 pandemic and now a shortage of cocoa beans.
Dan Sadler, Director of Client Insights at Circana, said, “There’s not as much chocolate on each retailer’s shelves.”
A spokesperson for Mondelez International, the manufacturer of Oreo cookies, mentioned that Halloween shoppers are seeking more limited edition and special flavor candies, such as the company’s cherry-flavored products. Mondelez does not have products in the major chocolate brands in the US.
A spokesperson for Hershey’s said that the company’s main new products for Halloween are “Reese’s Werewolf Tracks,” featuring vanilla cream on top instead of milk chocolate, and “KitKat Ghost Toast,” a cinnamon toast with a cream flavor.
The spokesperson mentioned that Hershey’s plans to introduce more candies in the coming months.
However, the spokesperson added that it is certain that compared to regular shopping, chocolate occupies a larger share in Halloween candy sales.
According to the National Confectioners Association, Halloween was the biggest candy-selling holiday last year.
Data from NielsenIQ shows that the average price of chocolate has increased by over 40% compared to 2020, surpassing the already slowing broader food inflation.