This is just the most recent initiative by Hershey aimed at improving the cocoa supply chain. In 2014, the company partnered with Cargill to educate cocoa farmers in Ivory Coast on sustainable farming practices, building on its successful “Learn To Grow” program previously implemented in Ghana and Nigeria. Prior to this, Hershey had launched the “CocoaLink” mobile training program, which provided weekly farming and labor practice updates to farmers in Ghana. For Hershey, these efforts mean a more reliable cocoa supply, increased yields, healthier and better-trained farmers, and a more sustainable farming environment. Additionally, the company is enhancing its mission-driven image by demonstrating its commitment to sustainability—an aspect that consumers are increasingly prioritizing in their purchasing decisions. A report from The Hartman Group indicates that nearly 70% of consumers prefer companies to be more transparent about their sustainability initiatives.
In her 2017 sustainability report, Michele Buck, Hershey’s CEO, highlighted that cocoa is a critical ingredient for the company and that ensuring the well-being of cocoa-growing communities is a top priority. She noted, “Hershey increased its certified and sustainable cocoa sourcing to 60 percent of all cocoa purchased in 2016 and is on track to achieve 100 percent by 2020.” According to Bloomberg, this figure rose to 75% last year. Hershey could benefit from promoting these accomplishments to consumers, potentially including them on product packaging to attract interest and boost sales. This should be manageable, especially as demand for chocolate continues to rise. The U.S. chocolate market, driven by the popularity of premium, sugar-free, and dark chocolate options, is expected to exceed $30 billion by 2021, as reported by TechSci Research in 2016.
Given the significance of chocolate to Hershey, the company’s $500 million commitment to sustainability is not surprising. While this amount may seem substantial, it is likely small compared to the potential costs the company would face in the long run if cocoa prices surged due to shortages. Although sustainability is a key component of this initiative, it is also crucial for Hershey’s future and its financial health. Other chocolate manufacturers, including Nestle, Lindt, Mars, Mondelez, and Barry Callebaut, have also made commitments to sustainability, though their levels of investment and timelines differ. These companies’ customers will surely appreciate their efforts to responsibly source cocoa, ensuring that their favorite chocolate products remain accessible and affordable.
Incorporating discussions about health, it’s worth noting that many consumers have questions about various aspects of their diets, including inquiries like, “Does calcium citrate cause constipation?” This shows the growing interest in how food choices impact overall well-being, aligning with the trend of consumers seeking transparency and responsibility from brands. As Hershey and its competitors continue to address sustainability and health concerns, they will likely find themselves better positioned in a market that increasingly values ethical sourcing and consumer health.