Shrinkflation could start hitting this grocery store segment, too
Maybe you've noticed -- chocolate costs a lot more these days. That's because theres a chocolate/cocoa shortage thats getting out of hand.
Shifting weather patterns such as extreme heat, drought, and heavy rainfall associated with El Nio, have significantly impacted crop yields in major cocoa-producing countries like Ghana and Ivory Coast. If youre keeping score, you can add crop diseases and aging trees to the list of reasons for the shortage, too.
Cocoa futures hit an all-time high of $10,051 per tonearlier this week because of whats happening. If you bought Easter candy, you probably noticed the uptick on your checkout receipt, but the rest of you better get ready, too.
Willy Wonka wont be saving the day any time soon
Industry analysts say you need to be prepared to pay more for chocolate for the next couple of years. Right now, general food inflation is running a bit over 7%, but chocolate is 30 timeshigher or more.
Datasemblys live tracking of its Snacks, Cookies, & Chips price index shows that segment as much as 60 index points higher than the national average price of grocery prices for thing like condiments, frozen foods, produceand meat.
Food Navigator notes that a lot of confectionery retail supply contracts are for 23 months, so that could put us into 2026 before those prices come down. After all, someones gotta pay for this, right?
You should also be prepared to see less chocolate in your chocolatey things. Food Navigator predicts that we may start to see confectioners promoting products that have lower cocoa content and that we mighthave to face the very real possibility that shrinkflation will show up, too.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-04-05 13:15:30
