In a startling turn of events, cocoa prices are skyrocketing in India, sending shockwaves through the chocolate and ice cream sectors. Amul, a key player in the chocolate market, contemplates a significant hike in chocolate prices as cocoa bean costs soar to Rs. 800/kg from Rs. 150-250/kg. Meanwhile, Baskin Robbins feels the pinch but refrains from immediate price adjustments. Havmor Ice Cream, anticipating the challenge, adopts strategic measures to maintain current pricing.
Amidst the surge in cocoa prices, major players in the chocolate and ice cream industries are facing tough decisions. Amul, considering the inevitable cost burden, plans to increase chocolate prices by 10–20% within the next two months. However, the company aims to keep ice cream prices unchanged, citing challenges in adjusting prices for seasonal products.
Baskin Robbins, grappling with a 70–80% surge in cocoa-based ingredient prices, opts to absorb the increased costs temporarily, with plans to reassess post-summer season. Similarly, Havmor Ice Cream, having already adjusted prices earlier in the year, strategically secures long-term pricing contracts to mitigate the impact of cocoa price hikes, aiming to maintain current price levels.
As cocoa prices continue to climb, industry leaders such as Amul, Baskin Robbins, and Havmor are faced with the delicate task of balancing profitability and consumer loyalty. Their decisions will likely shape pricing dynamics in the coming months, influencing consumer choices in the chocolate and ice cream markets.