Hershey to Spend $500 Million Making More Sustainable Kisses
Wednesday, April 11, 2018
By Marvin G. Perez, Emily Chasan
Hershey Co. is spending $500 million in the hopes of producing its iconic chocolate Kisses from more sustainable cocoa.
Through its so-called Cocoa for Good program, the company will invest the funds through 2030 to support four key areas: nourishing children, empowering youth, building prosperous communities and preserving natural ecosystems. The initiative’s goals include eliminating child labor and increasing shade-grown cocoa, which can be productive for as much as 15 years longer than plants grown in full sun.
World cocoa supplies are tightening following a price plunge that hurt global farmers and forced lower production, eroding a global surplus. The shifting supply outlook caused a whipsaw in the market. Through Monday, futures in New York had surged 39 percent this year after tumbling 41 percent over the prior two.
On Tuesday, a measure of 60-day historical volatility jumped to the highest since September as futures tumbled 5.2 percent to $2,498 a metric ton, the biggest loss for a most-active contract since May 24.
Photo courtesy of Irene Scott.
Source: Bloomberg Quint (link opens in a new window)