In the sweet world of chocolates and ice creams, there's a bitter reality unfolding: the skyrocketing prices of cocoa are starting to hurt major players. Not just the traditional chocolate makers like Amul, but also big ice cream brands like Baskin Robbins and Havmor, are feeling the pinch of higher cocoa costs, a report read.
Amul, a big name in the chocolate market, is mulling over a significant price hike for its chocolate products. Jayen Mehta, Managing Director at Gujarat Cooperative Milk Marketing Federation (GCMMF), the parent organization of Amul, revealed that cocoa bean prices have shot up in India, reaching Rs 800 per kg from the previous range of Rs 150-250. Mehta stressed that passing on this cost to consumers is inevitable, with chocolate prices expected to go up by 10-20% in the next two months.
Despite the looming price increase for chocolates, Amul plans to keep the prices of its ice creams and beverages unchanged, acknowledging the difficulty of adjusting prices for seasonal products. Mehta expressed confidence in the competitiveness of their products, suggesting that any impact on market share would be minimal.
Similarly, Baskin Robbins, a popular American ice cream brand in India, is feeling the pressure of rising cocoa prices. Mohit Khattar, CEO at Graviss Foods, the master franchise holder for Baskin Robbins in India, revealed that prices of cocoa-based ingredients have surged by 70-80%. However, the company has decided to absorb these increased costs for now, refraining from immediate price hikes. Khattar indicated that they would reassess the situation after the summer season, remaining hopeful about sales performance.
Havmor Ice Cream, which had already adjusted prices earlier in the year to counter inflation, is also planning to tackle the impact of cocoa price hikes. Komal Anand, Managing Director at Havmor, highlighted the ice cream market's sensitivity to pricing changes. Anand disclosed that the company had secured long-term pricing contracts in anticipation of such challenges, aiming to maintain current price levels despite the surge in cocoa costs.
As cocoa prices continue to climb, chocolate and ice cream brands are navigating a delicate balance between profitability and retaining consumer loyalty. The decisions made by industry leaders like Amul, Baskin Robbins, and Havmor are likely to influence pricing dynamics in the coming months, affecting consumer choices in the chocolate and ice cream sections.
Iron-Rich Foods for Healthy Hair: Chocolate and Tofu
Biocon Ventures into Obesity Medications, Eyeing $100 Billion Market