Pittsburgh-area companies see increase in chocolate prices

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We want to help explain why you’re paying more for chocolate at the stores — and could likely pay even more in the coming months.A cocoa bean shortage in Africa is causing concern around the world about the ability to import the beans to make the chocolate, including at a large factory in western Pennsylvania.At Sarris Candies in Canonsburg, 100% of what they make involves chocolate. Their treats are found in school fundraiser magazines and stores throughout the region.”Within about 200 miles, we have about 1,300 locations,” CEO Bill Sarris said, adding that, “We do 3,000 different types of chocolate novelties.”Asked if he has ever experienced anything this, Sarris said, “Nothing like this. This is a world issue now.”Cocoa prices soared five times in the last year. In one year, the price for a ton of cocoa skyrocketed from $2,600 to nearly $12,000, driven by the worst supply shortage in 40 years in west Africa.”Africa is where 70% of the beans come from,” Sarris said. “They have droughts, they have floods, they have rain — just a number of factors all of a sudden hit at one time.”Sarris Candies relies on imported cocoa beans to create their confectionary classics.”When you need 200,000 pounds a month, it changes that whole scenario as far as even (being) able to get the beans,” Sarris said.He says a 25% increase in prices is already in effect.”You’re going to raise prices,” Sarris said. “You have to, to maintain your base, and you start looking for efficiencies.”Grandpa Joe’s Candy Shop owner Christopher J. Beers said about 25% of their products are going to be affected by the financial impacts of the cocoa shortage.”It’s coming, is what our manufacturers are telling us,” Beers said. “It’s not happening yet. We’re not really seeing drastic price increases, but we know over the next three to six months that those prices are going to come.”Beers has 16 locations in five states and said Grandpa Joe’s distributes candy to 15,000 independent retailers across the U.S.”I think we’re going to pass that hopefully minimal expense onto the consumer, just as anybody else would,” he said.Beers remains realistic and optimistic, saying there are no plans to cut back on the amount of chocolate they sell or make.”We just went through a sugar crisis in the last two years with availability and pricing and all of that,” he said. “That definitely had a much bigger impact than the chocolate did in our world.”In Sarris’ world, chocolate is 100% of his business. It’s the reason he will continue to keep a close eye on the costs to find, buy and import the specific cocoa beans from Africa that his family has been using for decades.The uncertainty with the cocoa supply comes amid the already-planned expansion of Sarris in a new facility at the old Fort Pitt Bridge Works, a building that is three times the size of their current chocolate factory.Sarris says they have enough cocoa beans under contract now to get them through the end of 2024 or the beginning of 2025.”Candidly, we’re praying,” he said. “It’s just — it’s insane. We’ll see what happens.”

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