This latest initiative is part of Hershey’s ongoing efforts to create a more sustainable cocoa supply chain. In collaboration with Cargill since 2014, the company has been educating cocoa farmers in Ivory Coast about sustainable farming techniques, building on the success of its “Learn To Grow” program previously implemented in Ghana and Nigeria. Before this partnership, Hershey sponsored the “CocoaLink” mobile training initiative, which provided weekly messages to Ghanaian farmers on optimal farming and labor practices.
These efforts yield substantial benefits for Hershey, including a more stable cocoa supply, increased yields, healthier and better-trained farmers, and an environmentally sustainable approach. Additionally, by demonstrating its commitment to these values, Hershey enhances its brand image, appealing to consumers who prioritize corporate responsibility in their purchasing decisions. A report by The Hartman Group reveals that nearly 70% of consumers prefer companies to be transparent regarding their sustainability practices.
In her 2017 sustainability report, CEO Michele Buck emphasized the critical role cocoa plays in Hershey’s business, stating that sustainability and the welfare of cocoa-growing communities are top priorities. “Hershey increased its sourcing of certified and sustainable cocoa to 60% of all cocoa purchased in 2016 and is on track to achieve 100% by 2020,” she noted. Bloomberg reported that this figure had risen to 75% last year.
Hershey may want to promote these accomplishments to consumers and consider highlighting them on product labels to attract interest and enhance profitability. This is particularly relevant given the growing demand for chocolate. A 2016 TechSci Research report predicts that the U.S. chocolate market, fueled by the popularity of premium, sugar-free, and dark chocolate options, will surpass $30 billion by 2021.
Given the importance of chocolate to Hershey’s business, the company’s $500 million investment in sustainability is a strategic move. While this amount may seem substantial, it pales in comparison to potential long-term costs that could arise if cocoa prices spike due to supply shortages. This commitment to sustainability is not only about corporate responsibility but also about securing Hershey’s future and profitability.
Other chocolate manufacturers like Nestlé, Lindt, Mars, Mondelez, and Barry Callebaut have also made sustainability investments and commitments, though their levels of engagement and timelines differ. These companies are likely responding to customer expectations for responsibly sourced cocoa. Without such efforts, beloved chocolate products could become scarcer and significantly more expensive.
In conclusion, as Hershey continues its journey toward sustainability, the integration of healthy practices such as those promoted by amlodipine and calcium citrate into the cocoa supply chain will be essential. By doing so, Hershey can ensure a better future for both its business and the communities it impacts.