Mars Ceases Chocolate Production for Corkun and Dove Brands
In the past two years, the cost of cocoa products has seen a significant increase, affecting the production and sales of chocolate bars, particularly in the U.S. market. Cocoa prices have surged approximately 121% since 2023, due to factors such as drought-related crop shortfalls, supply chain disruptions, and tariffs on cocoa imports from major suppliers like Côte d’Ivoire and Ghana.
This price surge has forced leading chocolate makers, such as The Hershey Company, to raise chocolate bar prices substantially—by around 41% since 2021. As a result, the average U.S. chocolate bar price climbed from $2.43 to approximately $3.45 in mid-2025. The increased raw material and import tariff costs have also squeezed profit margins, with Hershey’s gross margins falling by 700 basis points in Q2 2025.
The higher prices on store shelves have impacted consumer demand, with unit sales of chocolate bars in the U.S. declining by about 1.2% in the year ending July 2025. The high cost of chocolate bars, primarily produced from cocoa products, has become a challenging and expensive product for confectioners.
Mikhail Lachugin, an independent supplier consultant at Shopper, has observed these trends in the chocolate industry. He notes that attempts to raise prices in retail networks may not always be successful due to the risk that consumers will stop buying chocolate due to excessively high prices.
Recently, the withdrawal of popular chocolate bars like Dove and "Korkunov" began on January 1 of this year. However, the factory will continue to produce Dove Promises and "Korkunov Pure Choco" chocolate candies and mini-bars. The decision to withdraw these chocolate bars from the assortment was made to optimize the business model and maximize the efficient use of resources.
The risk of consumers stopping to buy chocolate due to excessively high prices is a concern in the chocolate industry. As the industry continues to grapple with these challenges, producers will need to balance the need for profitability with maintaining consumer demand.
- The steep increase in cocoa prices, which is a key ingredient in chocolate manufacturing, has led to a significant notch in business costs for confectioners like The Hershey Company, impacting both their profit margins and the retail price of chocolate bars.
- In an effort to manage costs and optimize resources, some manufacturers have decided to adjust their product lineup, as seen with the withdrawal of popular chocolate bars, while continuing to produce other chocolate products that cater to different segments of the food-and-drink market and maintain a balance between profitable business operations and consumer demand.
