Chocolate Prices Soar in Dark Turn

This article discusses how the shift in consumer preference, from milk chocolate to dark chocolate, affects the chocolate supply and demand curves. Recently there has been a higher demand for cocoa beans which causes the price of chocolate bars to increase. The switch towards dark chocolate could come as a result of the health benefits that dark chocolate provides compared to milk chocolate. It requires more cocoa beans to produce dark chocolate which impacts the resources required to make the chocolate bars. The article touches on how this will impact major chocolate companies (mainly Hershey) and how they will respond to the new demand.

4 Comments »

  1. Nicky Tynan Said,

    September 24, 2013 @ 7:02 pm

    This is an excellent article for highlighting the impact of a shift in demand (increase, shift to the right) along with a shift in supply (decrease, shift to the left) at the same time. Both shocks to the market have increased the price of chocolate.

    The final sentence also hints at the price elasticity of demand for chocolate:
    “But if history is any guide, chocolate lovers won’t let higher prices keep them from their craving, said Hershey’s Chief Executive John P. Bilbrey.”

  2. millemad Said,

    September 25, 2013 @ 10:09 pm

    I liked this article because it helped me put what we were learning into perspective because chocolate is something many people consume (which made it a great example). It showed how when a demand for one thing increases there is an increase (or decrease) on other items that make up chocolate.

  3. Tom Sokol Said,

    September 27, 2013 @ 6:40 pm

    I think this article is a great real life application to what we are learning in class. There is a decrease in the supply of chocolate due to a shortage in cocoa beans and there is an increase in demand. This leads to an increase in the price of chocolate which we have illustrated through supply and demand graphs during class.

  4. blackta Said,

    September 30, 2013 @ 1:31 am

    This article is a perfect application of what we have been discussing in class and truly shows just how sensitive supply and demand are. It is interesting to think that just because of a recent discovery of the health benefits of dark chocolate that consumers’ tastes could impact the world market so greatly! It is a great example of how shortages are caused and how competition will then drive prices up.

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