Amid surging cocoa prices, Indian chocolate makers and dairy brands are grappling with cost pressures. Amul, a leading dairy brand, is considering a price increase of 10-20% for its chocolates due to a substantial rise in cocoa bean prices, from Rs 150-250 to Rs 800 per kilogram. This increase primarily affects dark chocolate products, which are significant for Amul's market presence. Despite the cost hike, Amul plans to maintain its pricing for ice creams and beverages, relying on its competitive market pricing to sustain its share.
Baskin Robbins, an American ice cream brand, and Havmor Ice Cream are facing similar challenges with rising cocoa-based ingredient costs, impacting their production expenses significantly. While Baskin Robbins aims to absorb these additional costs without altering consumer prices, it plans to reassess its strategy post the summer season. Havmor, having already adjusted its prices at the year's start, seeks alternative methods to manage the financial strain without resorting to further price increases, benefiting from prior long-term pricing contracts.
The escalating cocoa prices are affecting a wide range of companies, from chocolate manufacturers to ice cream and snack producers, compelling them to strategize around price adjustments and cost management. These businesses are navigating the delicate balance between maintaining consumer affordability and covering increased production costs, with the potential for price revisions looming as they monitor market dynamics and input cost trends.