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If youre planning to roast smores over a campfire this summer, youll be spending more than last year on one ingredient that you cannot skip. Hershey plans to raise prices on its products to offset the cost of cocoa, a commodity thats been on a pricing roller coaster of its own over the last two years. CBS News reports that the company will introduce a low double-digit increase in prices across its products. Hershey owns many of the most popular candy brands in the U.S., including Reeses, Kit Kat, and York, as well as non-chocolate candies like Twizzlers and Jolly Rancher. The price hike will likely go into effect within 90 days, though that timeline may vary. Last year, the price of cocoa hit historical highs, soaring past $10,000 per metric ton. Cocoa prices began spiking at the beginning of 2024, doubling over the course of the year and tripling since late 2023. Over the last month, cocoa dipped well below its record highs, but it still costs more than twice as much as it did two years ago. Cocoa powder, used to make chocolate, comes from the seeds of the cacao tree, a water-intensive plant grown in tropical parts of Africa and South America. West Africa accounts for three-quarters of the worlds cocoa supply, with the Ivory Coast and Ghana being the worlds top two cocoa-exporting nations. With the global appetite for chocolate relying on a single region in Africa, cocoa is relatively vulnerable to forces outside of farmers controlparticularly climate-caused weather events that are worsening as the planet warms. The climate crisis is expected to cause accelerating agricultural losses for staple crops like corn and wheat around the globe, and cocoa is no different. Excessive rainfall in late 2023 caused cacao pods to rot, one factor that sent the price of the commodity sky-high. Intense heat is also taking its toll on cocoa farming, and cacao trees can struggle to produce pods when temperatures stretch above the plants ideal range for days on end. Less production means higher prices, though those effects might not have been fully felt by consumers right away. Pricing has yet to pick up meaningfully, but we expect this to accelerate potentially to the low teens in 2025, Celine Pannuti, head of J.P. Morgans European Staples and Beverages team, said in a late 2024 report on the cocoa crunch. We see the chocolate market set for inflation largely unprecedented in recent history. Chocolate in a changing economy Hershey says that its planned price increase isnt related to tariffs, but the company has identified tariffs as a threat to its business before. Cocoa cant be grown in the U.S. and must be imported, making it vulnerable not only to a changing climate but also to the whims of a president keen to inject chaos into global trade. In May, Hershey was pursuing an exemption with the Trump administration that would allow the company to import its key ingredient without taking on new costs associated with tariffs. In an earnings call, the company estimated that Trumps tariffs would cost it between $15 and $20 million in the second quarter of the year. Absent tariff relief, this expense is expected to increase in the third quarter as we work through inventory on hand, Hershey CFO Steve Voskuil said on the call. Given that Hersheys prices will increase, the company likely did not secure an exemption for its cocoa importsparticularly since any conversation with Trump would likely come with threats against raising prices. Fast Company has reached out to Hershey for an update on its pursuit of a tariff exemption for its cocoa imports. As a largely domestic food producer, we are relatively less exposed to tariffs than other industries, Hershey CEO Michele Buck said in May. That said, the current U.S. levy on cocoa is an exposure that we must manage on top of the cocoa markets unprecedented recent price swings. Cocoa might be more expensive now, but Hershey is optimistic about the future, noting in its last earnings call that cocoa supplies from the worlds top three suppliers should be up by 20%. The spike in cocoa prices also led to a flurry of cocoa farming investment, a move that could improve yields in the future. There are reasons to believe that this years crop marks the beginning of a multiyear growth cycle in cocoa supply, Buck said. In the meantime, global end users are now responding to persistently high prices in earnest, having waited and watched for some time.
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Donut lovers, this one’s for you! Starting in August, you’ll be able to purchase limited-edition Crocs clogs inspired by Krispy Kreme’s glazed donutsand also get a free donut, just for wearing the Crocs into the store. The Krispy Kreme x Crocs Classic Clogs collaboration will be available for purchase on August 5 and come in a specially branded Krispy Kreme donut box. The shoes include two interchangeable toe caps of chocolate and strawberry icing with sprinkles, and oversized Krispy Kreme Jibbitz charms of the Original Glazed donut and Krispy Kreme “hot now” light, which customers can swap out depending on their tastes, as well as a strap around the heels with the Krispy Kreme logo. In addition, customers will also be able to purchase a five-pack of Krispy Kreme Jibbitz charms, with two donuts, a dozens box, the iconic paper hat, and the Krispy Kreme logo. “At Crocs, weve always believed in comfort you can customize, Terence Reilly, Crocs, Inc. Chief Brand Officer said in statement. Because when it comes to self-expression, we ‘doughnut’ hold back.” If all this Croc talk is making you hungry, take note: From August 4 to August 10, while supplies last, Krispy Kreme is also offering a special donut dozen featuring the three donuts featured on the Crocs: the Original Glazed, Chocolate Iced with Sprinkles, and Strawberry Iced with Sprinkles. You can find them at participating Krispy Kreme shops, and for pickup or delivery via Krispy Kremes app and website. How to get the Krispy Kreme x Crocs Classic Clogs On August 4a day before the collaboration officially dropsanyone can order the Crocs by visiting any participating Krispy Kreme shop and scanning the Crocs QR code on display. On August 5, the collaboration becomes available online at crocs.com and in Crocs stores. When to get a free donut for wearing Crocs to a Krispy Kreme store On August 9, Krispy Kreme will offer a free Original Glazed donut to customers who come in wearing their Crocs. Krispy Kreme as a new meme stock Krispy Kreme is currently riding the wave of another trend: the meme stock. In short (pun intended), this is when a group of investors use social media to decide which stocks to buy, often in struggling companies at a low price, forcing that stock price to rise. (The stocks are often heavily shorted, according to Reuters, forcing those investors to sell to stop their losses.) The practice has been popularized in part by the Reddit group WallStreetBets. On Wednesday, shares in Krispy Kreme (Nasdaq: DNUT) jumped 25% in premarket trading before the opening bell, before leveling off as of the time of this writing, up about 4%. This comes one day after the stock rose 26%. Krispy Kreme has a current market capitalization of $750.15 million. In its most recent earnings report for the first quarter of 2025, the company reported adjusted earnings-per-share (EPS) of -$0.05, which met Wall Street expectations. However, the company missed estimates on revenue, which fell 15.2% year-over-year to $375.18 million.
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U.S. President Donald Trump has announced trade deals with Japan and a handful of other Asian countries that will relieve some pressure on companies and consumers from sharply higher tariffs on their exports to the United States. A deal with China is under negotiation, with U.S. Treasury Secretary Scott Bessent saying an Aug. 12 deadline might be postponed again to allow more time for talks. Steep tariffs on U.S. imports of steel and aluminum remain, however, and many other countries, including South Korea and Thailand, have yet to clinch agreements. Overall, economists say the tariffs inevitably will dent growth in Asia and the world. The deals reached so far, ahead of Trumps Aug. 1 deadline Trump and Japanese Prime Minister Shigeru Ishiba announced a deal Wednesday that will impose 15% tariffs on U.S. imports from Japan, down from Trump’s proposed 25% reciprocal tariffs. It was a huge relief for automakers like Toyota Motor Corp. and Honda, whose shares jumped by double digits in Tokyo. Trump also announced trade deals with the Philippines and Indonesia. After meeting with Philippine President Ferdinand Marcos, Jr., Trump said the import tax on products from his country would be subject to a 19% tariff, down just 1% from the earlier threat of a 20% tariff. Indonesia also will face a 19% tariff, down from the 32% rate Trump had recently said would apply, and it committed to eliminating nearly all of its trade barriers for imports of American goods. Earlier, Trump announced that Vietnam’s exports would face a 20% tariff, with double that rate for goods transshipped from China, though there has been no formal announcement. Talks with China may be extended Negotiations with China are subject to an Aug. 12 deadline, but it’s likely to be extended, Bessent told Fox Business on Tuesday. He said the two sides were due to hold another round of talks, this time in Sweden, early next week. Meanwhile, Trump said a trip to China may happen soon, hinting at efforts to stabilize U.S.-China trade relations. A preliminary agreement announced in June paved the way for China to lift some restrictions on its exports of rare earths, minerals critical for high technology and other manufacturing. In May, the U.S. agreed to drop Trump’s 145% tariff rate on Chinese goods to 30% for 90 days, while China agreed to lower its 125% rate on U.S. goods to 10%. The reprieve allowed companies more time to rush to try to beat the potentially higher tariffs, giving a boost to Chinese exports and alleviating some of the pressure on its manufacturing sector. But prolonged uncertainty over what Trump might do has left companies wary about committing to further investment in China. No deals yet for South Korea and other Asian countries Pressure is mounting on some countries in Asia and elsewhere as the Aug. 1 deadline for striking deals approaches. Trump sent letters, posted on Truth Social, outlining higher tariffs some countries will face if they fail to reach agreements. He said they’d face even higher tariffs if they retaliate by raising their own import duties. South Korea’s is set at 25%. Imports from Myanmar and Laos would be taxed at 40%, Cambodia and Thailand at 36%, Serbia and Bangladesh at 35%, South Africa and Bosnia and Herzegovina at 30% and Kazakhstan, Malaysia and Tunisia at 25%. The status of talks with India remains unclear but progress appears to hinge on the country’s heavily protected farm sector. It faces a 26% tariff. Nearly every country has faced a minimum 10% levy on goods entering the U.S. since April, on top of other sectoral levies. Economists expect tariffs to sap growth even with trade deals Even after Trump has pulled back from the harshest of his threatened tariffs, the onslaught of uncertainty and higher costs for both manufacturers and consumers has raised risks for the regional and global economy. Economists have been downgrading their estimates for growth in 2025 and beyond. The Asian Development Bank said Wednesday it had cut its growth estimate for economies in developing Asia and the Pacific to 4.7% in 2025 and 4.6% in 2026, down 0.2 percentage points and 0.1 percentage points. The outlook for the region could be further dimmed by an escalation of tariffs and trade friction, it said. Other risks include conflicts and geopolitical tensions that could disrupt global supply chains and raise energy prices, as well as a deterioration in China’s ailing property market. Economists at AMRO were less optimistic, expecting growth for Southeast Asia and other major economies in Asia at 3.8% in 2025 and 3.6% next year. While countries in the region have moved to protect their economies from Trump’s trade shock, they face significant uncertainties, said AMRO’s chief economist, Dong He. Uneven progress in tariff negotiations and the potential expansion of tariffs to additional products could further disrupt trade activities and weigh on growth for the region, he said. Elaine Kurtenbach, AP business writer
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