Clarkston CPG Partner Shares Insights on Impact of Soaring Cocoa Prices
June 15, 2024 | Clarkston Partner and Consumer Products Industry Lead Steve Rosenstock was cited by CNBC for his expertise on the food industry. Cocoa prices have been hitting record highs, creating issues for candy companies. See Steve’s featured quotes from the article below, and read the full article here.
Cocoa prices are soaring. Candy makers will need to get creative
“This is absolutely impacting the ways in which these companies are managing their businesses, just because the cost impact is so incredibly significant,” said Steve Rosenstock, the consumer products lead at Clarkston Consulting, which advises clients on how to deal with problems such as the soaring cost of cocoa.”
“There are examples where companies are increasing the amount of non-cocoa additives, like sugar, more economical things like cocoa butter equivalents, shea butter, palm oil, coconut oil, those types of things.”
“I don’t think they did it to be less dependent on cocoa — they did it to more easily react to the ups and downs of consumer trends and to be able to really diversify their portfolio. But the ability to lean on some of the non-chocolate categories, whether it’s salty snacks, jelly beans or gummy products, I think that’s a good way to combat the cocoa crisis.”