A painful reality is surfacing in the sweet world of chocolates and ice creams: key firms are beginning to feel the effects of the soaring prices of cocoa. Higher cocoa costs are hurting not just established chocolate manufacturers like Amul but also major ice cream companies like Baskin Robbins and Havmor, according to a research.
The well-known chocolate manufacturer Amul is considering raising the price of its chocolate goods significantly. According to Jayen Mehta, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), Amul's parent company, the price of cocoa beans has skyrocketed in India, rising from Rs 150–250 per kg to Rs 800. Mehta emphasized that customers will inevitably bear the expense of this increase, as chocolate prices are predicted to rise by 10–20% over the next two months.
Amul intends to maintain the same rates for its ice creams and beverages in spite of the impending price hike for chocolates, recognizing the challenge of changing prices for seasonal goods. Mehta stated that they were confident in the competitiveness of their products and that there would be little effect on market share.
Similar to this, growing cocoa prices are putting pressure on India's iconic American ice cream brand, Baskin Robbins. The CEO of Graviss Foods, the Indian master franchise holder for Baskin Robbins, Mohit Khattar, disclosed that the cost of products containing cocoa has increased by 70–80%. But rather than raising prices right now, the corporation has chosen to bear these higher expenses for the time being. Khattar expressed optimism on sales success and said they will review the issue following the summer.
Havmor Ice Cream intends to address the effects of rising cocoa prices in addition to raising pricing, which it had previously done earlier in the year to combat inflation. Havmor's Managing Director, Komal Anand, emphasized how sensitive the ice cream market is to price adjustments. Anand revealed that the company aimed to maintain existing price levels despite the spike in cocoa costs by securing long-term pricing contracts in front of such difficulties.
Chocolate and ice cream companies are managing a tightrope between profitability and preserving customer loyalty as cocoa prices rise. Leading companies in the market, such as Amul, Baskin Robbins, and Havmor, will probably have an impact on pricing dynamics in the upcoming months, which will have an impact on customer choices in the chocolate and ice cream departments.
