In a surprising twist for chocolate lovers, popular brands like Studentská pečeť and Orion cooking chocolate from Nestlé have seen a staggering 45% price increase over the past year, according to data from Kupi.cz. However, economists argue that the rising cost of cocoa alone doesn’t justify such a significant jump in chocolate prices.
While major brands have hiked their prices considerably, smaller domestic producers have been more modest, with increases limited to about 15%. This disparity raises questions about the factors driving the price surge in the chocolate industry.
Monika Kopčilová, a data analyst at Kupi.cz, notes that all selected chocolates saw year-on-year price increases in October, affecting both regular and promotional prices. The 260-gram Studentská pečeť, for instance, now retails at 159 crowns, up from 109.90 crowns a year ago.
Despite the recent spike in cocoa prices on commodity markets, experts point out that cocoa constitutes only a small portion of a chocolate bar’s final cost. Tomáš Maier, an economist from the Czech University of Agriculture in Prague, explains that cocoa accounts for merely 16% of the cost in standard milk chocolates and as little as 5% in pricier holiday collections.
The true culprits behind the price hikes appear to be rising costs in wages, energy, rent, packaging, and distribution, coupled with retailer markups. Some speculate that the high pre-Christmas chocolate prices might be a marketing ploy by retail chains, artificially inflating prices to later attract customers with discounts.
As consumers grapple with these price increases, smaller chocolatiers like Steiner & Kovařík in Prague and Janek in Uherský Brod are also feeling the pressure. While they’ve implemented more modest price increases, ranging from 5% to 15%, they’re exploring innovative solutions. Steiner & Kovařík, for instance, has invested in its own cocoa plantation in Bolivia to mitigate future price fluctuations.