Cocoa Prices Ease as Lindt, Barry Callebaut and Nestlé Turn to Premium Products and Social Media

According to CNBC, cocoa prices are easing after a record rally, but Lindt, Barry Callebaut and Nestlé are leaning on premium products and social media-driven launches to win back shoppers rather than cutting prices. Cocoa futures were last at $5,327 per metric ton, down 34% over the past year after touching almost $12,000 at the end of 2024. Lindt said Monday that groupwide price increases of 11.8% helped push chocolate sales volumes down 7.5% in the first half of the year. Group CEO Adalbert Lechner said record cocoa prices forced unprecedented industrywide increases, while geopolitical uncertainty, inflation, weak consumer sentiment and lower tourism flows from Asia and the Middle East to Europe also weighed on demand. Barry Callebaut said third-quarter consumer chocolate purchases were down 4.4% year over year, but its own sales volumes rose 5.7% and global cocoa sales increased 18% after a market correction earlier this year. Nestlé said higher cocoa and coffee prices reduced first-half underlying trading operating profit by 2.8% and that its confectionery business accounts for 9.7% of total sales. The companies said supply has been hit by poor West African harvests, weather tied to El Niño and climate change, while UBS analysts said Lindt has hedged cocoa bean costs for 2027 at favorable levels, which they estimate could cut costs by as much as 500 million Swiss francs. Lindt launched its Dubai-style chocolate bar in December 2024 to tap a viral trend, and Lechner said the company plans to expand its social media presence. Nestlé CEO Philipp Navratil said the company will invest more in influencer marketing and make its advertising more digital and social.