AmiSight 8/28: Sweet Strategy: How One Chocolate Brand Is Beating Rising Cocoa Costs

Chocolate lovers may have noticed price swings in their favorite treats over the past year — but tariffs aren’t to blame. Poor weather and plant disease have driven cocoa costs higher.

While some companies have just flat out raised prices, one is trying a different approach. 

The Wall Street Journal reports that Rocky Mountain Chocolate is implementing a new dynamic pricing plan for its gourmet chocolates due to rising cocoa costs, adjusting prices quarterly. And rather than automatically raising prices during high-demand times like Christmas and Valentine’s Day, the chocolate seller raises – and lowers – prices on a set schedule based on its own costs.

U.S. consumers are already eating less chocolate candy this year, according to market-research firm Circana, and Rocky Mountain doesn’t want the risk of losing more business. So far their approach is working as company executives said in June that they anticipate adding several million dollars in gross profit this fiscal year due to the price adjustments.

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