Those looking to pick up cheap treats at their local supermarket next week after the long Easter weekend could be in for a bit of a surprise as the rising cost of cocoa continues to push up the price of chocolate, an expert says.
In the past, consumers could stock up on mini eggs and chocolate bunnies at deep discounts in the days after the holidays, as stores looked to clear out old inventory. But slashing chocolate prices after the holidays may be a thing of the past, Sylvain Charlebois, a professor of food policy and distribution at Dalhousie University, told CP24.com.
“Don’t expect offers on Easter Monday. I don’t think it’s going to happen this year,” she said. “In fact, I think prices will continue to rise.”
Charlebois said in November that the price of cocoa surpassed the previous record of $4,500 per metric ton set in 1977.
“But it didn’t stop there. Since January, cocoa prices have doubled, reaching $10,000 per metric ton this week. “We’ve never seen this before.”
He said that amid a global cocoa shortage, companies like Nestle and Hershey have been trying to get as much as possible.
“We are seeing higher prices this year already at Easter. “Some chocolate eggs and some chocolate bunnies are more expensive than last year,” she stated.
“Walmart, for example, would guarantee consumers the same price as the previous year. This year they didn’t. In fact, they increased their eggs by 30 percent and that is a sign.”
He said consumers are seeing higher prices and smaller packages as a result.
“The famous Cadbury egg is seven grams smaller this year,” he noted. “That bothers a lot of people, the inflationary contraction.”
Retail analyst Bruce Winder said he suspects very few parents will refrain from buying chocolate for their children this holiday amid higher prices and tighter economic conditions, but noted that more people could choose to shop at retailers like Dollarama.
“If you’re one of the consumers who’s really tightening your belt right now because of interest rates, job uncertainty and layoffs, you’ll probably spend a little less this year,” he said.
“Some people will say, you know what? Even though times are tough, I buy my kids chocolate. I’m buying bunnies for my kids…I don’t want to cut back on that. “I will make sacrifices in other areas to ensure my children have a great Easter.”
Angela Macdonald, president of the Bloor West Village Business Improvement Area (BIA), said unprecedented interest in its annual Easter event, along with rising chocolate prices, has meant a 50 percent increase in its chocolate budget for this year’s Easter egg scavenger hunt. on Saturday.
“We know those prices are increasing per item and we definitely know our line item budget has increased as well,” he said.
“We make sure it is peanut-free and individually wrapped so there is no contamination. So it’s not just about going to buy a bag of bulk chocolate somewhere.”
He said the BIA wants to continue offering the free family event for years to come, but adjustments may need to be made to make its money go further.
“Typically, the Bloor West Village BIA hosts free family events because we appreciate the support local families provide to local businesses and…we understand the current economic climate,” she said.
“Obviously we’re going to have to find a way to stretch our budget or reduce it in other areas because, you know, it’s a well-loved event and we’re known for offering really wonderful family events.”