Sudbury chocolate businesses feeling pinch of rising cocoa prices

Chocolate businesses in the Greater Sudbury area say they are feeling the pinch of rising global cocoa costs, and it will be consumers paying the price.

Extreme weather events like drought and high temperatures in West Africa, where most of the world's cocoa beans are grown, has made it difficult for cocoa crops to be successfully harvested. This has led to a global shortage of cocoa beans and caused the price of cocoa to go up by 40 per cent since last year.

That, plus increases in the prices of other ingredients like butter and sugar, is making the chocolate business tough to be in right now.

"To put it into perspective, something that was $2,500 a ton a year ago is now $10,000 a ton," said Chantelle Gorham, owner of Northwest Fudge Factory in the Greater Sudbury community of Levack.

"Confectionery has actually increased 9 per cent between January 2023 and January 2024. All of your chocolate bars and all that in grocery stores and convenience stores has raised 9 per cent versus the overall food purchase, which is about 3.4 per cent," explained Gorham.

She said their business is currently stocked up with supplies for the year, but when she has to reorder again in the fall, she is expecting sticker shock.

"When it comes time to reorder, that's your day of reckoning."

Gorham said theNorthwest Fudge Factory has only raised its prices twice in the last decade, but she feels a price increase may be in store for the business if the prices of cocoa and other supplies don't stabilize. She said at the end of the day, it's the consumer who will end up paying more.

"Passing the cost on to the end user by increasing our prices isn't something that we want to do, and we don't take it lightly," said Gorham.

"But unfortunately, manufacturers have to remain sustainable as well and those expenses have to get added on somewhere and unfortunately it's often the end user."

At Huckleberries Chocolatiers in downtown Sudbury, owner Denise Regaudie said she has no choice but to increase her prices come April to help her keep up with the rising costs of supplies and operating the business.

"It's a hard game to play because how much is too much, you know, before you lose your consumer?" said Regaudie.

"You don't want to price yourself out of business, but you need to change your pricing, increase your pricing to stay in business. So it's a catch-22."

Regaudie explained she will often travel to other parts of the province to pick up supplies she can't source locally, as a way of keeping her costs down because delivery is now too expensive.

Regaudie said while business at Huckleberries has been good so far this year, she has noticed regular customers coming in less often or purchasing fewer items than in years past.

"I saw somebody two or three times a month and I maybe see them once a month right now, and then I've got some people that come once a week. It just depends on where their priorities lay and, you know, what they can do with their budget."