Nestlé To Raise Chocolate Prices In U.S. Market

Nestlé USA is raising prices on several chocolate products due to soaring commodity costs—an indication that sweet treats will remain expensive for American consumers in the near term, Bloomberg News reporters Jaewon Kang, Isis Almeida, and Sonja Wind reported.

Starting June 23, the U.S. division of Nestlé SA—the world’s largest food company—will hike prices for its Toll House morsels, baking cocoa, and fudge kits. I Photo: Nestle Toll House Facebook

Starting June 23, the U.S. division of Nestlé SA—the world’s largest food company—will hike prices for its Toll House morsels, baking cocoa, and fudge kits.

The move follows a series of letters sent late last year to some of the company’s commodity suppliers, requesting price reductions, rebates, or even the cancellation of supply contracts, according to sources familiar with the matter.

Several suppliers reportedly declined to comply.

These requests varied by supplier and outlined demands related to key inputs such as sugar and coffee. Despite an overall easing of grocery inflation, prices for chocolate and certain food items continue to climb, driven by persistent supply constraints.

Cocoa futures reached record highs late last year, pushing up production costs. Nestlé and its competitors have been dealing with surging cocoa and coffee prices, prompting pricing actions aimed at safeguarding margins.

These increases fueled Nestlé’s stronger-than-expected sales in the first quarter, with CEO Laurent Freixe stating the company is taking “as much price as we can to cover our costs while being mindful of the consumer response in a competitive environment.”