Dive Brief:
- Chocolate makers in North America processed a record amount of cocoa in the most-recent quarter, despite rising prices for cocoa beans.
- Some 138,027 metric tons of cocoa beans were processed at 17 plants in the U.S., Canada, and Mexico — the highest levels seen since records began in 2000.
- The surge in grindings surprised analysts, who forecasted flat numbers in the wake of the rising cost of cocoa beans and the decision by chocolate makers such as Hershey earlier this year to raise prices.
Dive Insight:
It's hard to say what North American chocolate makers are thinking here. Presumably the price hikes of the summer have not translated into falling sales at retail, and thus candy makers are comfortable processing a lot of cocoa.
On the other hand, cocoa prices have soared amid the Ebola crisis, and chocolate companies are worried about supply. The surge in processing could be aimed at heading off a decline in supply.
All that's certain is that things are different in North America this quarter. European candymakers reduced their grinding levels slightly, as expected.