**UK**: Chocolate prices surged by up to 50% this Easter due to a global cocoa shortage caused by poor harvests and inflation. Retailers are adapting supply chains with more agile, real-time strategies to ensure product availability during peak demand.
Chocolate prices surged by as much as 50% this Easter, driven by a global shortage of cocoa that has put retailers and manufacturers under increasing pressure to manage costs and ensure product availability during peak demand periods. The consumer group Which? highlighted the significant rise in prices, reflecting wider challenges within the supply chain linked to poor harvests in major cocoa-producing countries and inflationary pressures.
The shortage is a consequence of adverse weather conditions impacting key producers, combined with escalating inflation, underscoring the vulnerability of global supply chains to unexpected disruptions. Martin Lockwood, Senior Director at Manhattan Associates, commented to IT Supply Chain, “Seasonal surges should be predictable, but the causes behind pricing spikes like this year’s cocoa crisis are not always within retailers’ control. What is within their control is how agile and resilient their supply chains are in responding to these shocks.”
Retailers are increasingly re-evaluating their seasonal planning strategies to deal with such volatility. Lockwood emphasised the necessity of moving away from traditional forecasting models and fragmented inventory management towards systems providing unified, real-time supply chain visibility. “Chocolate is a symbolic seasonal product, but the same principles apply across any seasonal item – from swimwear to school supplies,” he said. “Being able to pivot quickly to alternative suppliers, reroute shipments, or dynamically adjust pricing and promotions based on availability is what separates the prepared from the panicked.”
In response to these challenges, some brands and retailers are exploring onshoring and friendshoring approaches, sourcing materials closer to home or developing regional fulfilment centres. Such models may reduce lead times and boost the flexibility required to respond effectively to fluctuations in supply, particularly for items sensitive to trends or perishability. Lockwood noted, “There’s no magic fix for rising cocoa costs or unpredictable harvests, but building a smarter, more responsive supply chain can be the difference between empty shelves and Easter success.”
The broader implications extend beyond factory floors and warehouses, impacting everyday consumers directly. Rising chocolate prices and occasional shortages at retail outlets bring supply chain issues into the household context, affecting purchasing decisions and budget management. “Consumers don’t think about supply chains until it hits their wallet – and this Easter, it has the potential to,” Lockwood remarked. “Retailers must adapt not just for operational resilience, but because their ability to deliver affordable, accessible products is now a key part of maintaining customer trust.”
As chocolate demand peaks seasonally around Easter, the current shortage has highlighted the complex interplay between agricultural production, global trade networks, and retail operations. The situation is prompting a reassessment of supply chain design and strategy across the sector, aiming to enhance agility in an era of increasing uncertainty.
Source: Noah Wire Services
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