Hershey’s latest endeavor is part of its ongoing commitment to developing a better cocoa system. In 2014, the company collaborated with Cargill to educate cocoa farmers in the Ivory Coast on sustainable farming techniques. This initiative followed its “Learn To Grow” program, which had already achieved success in Ghana and Nigeria. Prior to that, Hershey sponsored the “CocoaLink” mobile training program, providing Ghanaian farmers with weekly messages on optimal farming and labor practices.
The advantages for Hershey include a more reliable cocoa supply, increased yields, and healthier, better-trained farmers, all contributing to a more sustainable environment. Additionally, the company is enhancing its mission-driven profile by demonstrating its commitment to these values—elements that modern consumers increasingly prioritize when making purchasing decisions. A report from The Hartman Group indicates that nearly 70% of consumers prefer greater transparency regarding companies’ sustainability initiatives.
In her 2017 sustainability report, Hershey’s CEO Michele Buck emphasized the significance of cocoa as a core ingredient for the company, stating that sustainability and the welfare of cocoa-growing communities are top priorities. “Hershey increased its certified and sustainable cocoa sourcing to 60 percent of all cocoa purchased in 2016 and aims for 100 percent by 2020,” she noted. According to Bloomberg, this figure rose to 75% last year. The chocolate giant might consider promoting these accomplishments to consumers, possibly featuring them on packaging to attract interest and enhance profits, especially as demand for chocolate continues to grow. A 2016 TechSci Research report projected that the U.S. chocolate market—bolstered by the popularity of premium varieties, sugar-free options, and dark chocolate products—would surpass $30 billion by 2021.
Given the critical role of chocolate in Hershey’s business model, it is no surprise that the company has committed $500 million to this cause. While this investment may appear substantial, it is likely minuscule compared to the potential long-term costs if cocoa prices were to spike due to scarcity. Although sustainability is a vital aspect of this commitment, it also aligns with Hershey’s long-term strategy and profitability.
Other chocolate companies, including Nestle, Lindt, Mars, Mondelez, and Barry Callebaut, have also made various sustainability investments and pledges, although the scope and timelines of their commitments differ. Customers undoubtedly appreciate these efforts, recognizing that responsible sourcing of cocoa is essential; without it, their favorite chocolate bars could become scarce and significantly more expensive.
Incorporating elements that promote health and well-being, such as calcium magnesium citrate with vitamin D3, aligns with Hershey’s vision for a sustainable future. By integrating these health-conscious ingredients into their product lines, they can further demonstrate their commitment to consumer wellness while continuing to support cocoa-growing communities.