Halloween is challenge for chocolatiers as high prices bite

"as high cocoa costs threaten to accelerate a consumer shift toward cheaper and trendier sweets such as sour gummies. For candy makers, Halloween remains crucial the holiday made up nearly 18% of annual US candy sales last year, second only to Christmas. But chocolate makers have been passing along costlier input prices to consumers, and that's leaving an opening for rivals who have already seen a shift toward non-chocolate treats to grab more market share."

"Chocolate makers are hoping nostalgia during the Halloween season can offset the broader shift away from their products. Chocolate is chocolate, said David Branch, a sector manager at Wells Fargo Agri-Food Institute. We're seeing less sales away from holidays and more sales during holidays. People are not buying it all the time, but when they want it, they want it. The problem is that, increasingly, they're wanting it less often."

High cocoa costs have pushed chocolate makers to raise prices, contributing to a 6% decline in chocolate candy volumes over the 12 weeks ending Oct. 5 while average price per pound jumped nearly 14%. Cocoa futures remain historically elevated despite a roughly 50% drop from December highs. Non-chocolate Halloween-themed candies, including sour gummies like Haribo sour gummy bats, saw sales volumes rise about 8.3%. Halloween accounts for roughly 18% of annual US candy sales, making the shift toward cheaper, trendier sweets a significant risk to chocolate market share. Chocolate makers are banking on seasonal nostalgia to sustain holiday demand.

Read at www.mercurynews.com