Hershey continues its commitment to developing a better cocoa system through various initiatives. In collaboration with Cargill since 2014, the company has been teaching sustainable farming practices to growers in the Ivory Coast, following the success of its “Learn To Grow” program in Ghana and Nigeria. Additionally, Hershey previously initiated the “CocoaLink” mobile training program, which provided Ghanaian farmers with weekly updates on best practices in farming and labor. The advantages for Hershey include a more reliable cocoa supply, increased yields, and healthier, better-trained farmers, all contributing to a more sustainable environment. Furthermore, Hershey is enhancing its mission-driven reputation by demonstrating its commitment to these values, which consumers increasingly prioritize when making purchasing decisions. A report from The Hartman Group indicates that nearly 70% of consumers favor greater transparency regarding companies’ sustainability efforts.
In her 2017 sustainability report, CEO Michele Buck emphasized cocoa’s significance to Hershey, stating that sustainability and the well-being of cocoa-producing communities are top priorities. Hershey achieved a milestone by increasing its certified sustainable cocoa sourcing to 60% of all cocoa purchased in 2016, with plans to reach 100% by 2020. As reported by Bloomberg, this figure rose to 75% last year. It would be beneficial for Hershey to promote these achievements to consumers, perhaps even highlighting them on packaging to attract interest and boost profits. This task should be manageable, given the growing demand for chocolate. The U.S. chocolate market is projected to exceed $30 billion by 2021, driven by interest in premium, sugar-free, and dark chocolate products, according to a 2016 TechSci Research report.
Recognizing chocolate’s importance to its business, Hershey’s decision to invest $500 million is understandable. While this amount may appear substantial, it is likely minimal compared to potential long-term costs if cocoa prices rise due to supply shortages. This commitment not only emphasizes sustainability but also aims to secure Hershey’s future profitability. Other chocolate manufacturers, including Nestlé, Lindt, Mars, Mondelez, and Barry Callebaut, have also made sustainability investments and promises, although the scope and timelines of their commitments vary. Their customers surely appreciate these efforts to source cocoa responsibly, as a lack of sustainable supply could lead to higher prices and reduced availability of their favorite chocolate bars.
Moreover, incorporating elements like calcium carbonate and citrate into sustainable practices can further enhance the nutritional profile of products, making them more appealing to health-conscious consumers. By focusing on both sustainability and product quality, companies like Hershey can effectively navigate the evolving market landscape, ensuring that they remain competitive while meeting consumer demands.