This is yet another initiative by Hershey aimed at improving the cocoa supply chain. In 2014, the company collaborated with Cargill to educate cocoa farmers in the Ivory Coast about sustainable farming practices, building on the success of its “Learn To Grow” program in Ghana and Nigeria. Prior to that, Hershey had launched the “CocoaLink” mobile training program, which provided Ghanaian farmers with weekly updates on optimal farming and labor practices.
Hershey’s efforts yield several advantages, including a more consistent cocoa supply, increased yields, healthier and better-trained farmers, and a more sustainable environment. Moreover, the company is enhancing its mission-driven image by demonstrating its commitment to these values, which are increasingly important to consumers. A report by The Hartman Group reveals that nearly 70% of consumers prefer companies that are transparent about their sustainability initiatives. In her 2017 sustainability report, CEO Michele Buck emphasized the significance of cocoa as a key ingredient for the company and highlighted 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 is on track to achieve 100 percent by 2020,” she stated. According to Bloomberg, this figure rose to 75% last year.
The chocolate giant could benefit from promoting these accomplishments to consumers, potentially including them on product packaging to attract interest and boost sales. This strategy should be manageable, especially given the rising demand for chocolate. The U.S. chocolate market is projected to exceed $30 billion by 2021, driven by an appetite for premium, sugar-free, and dark chocolate varieties, as reported by TechSci Research in 2016.
Considering the critical role of chocolate in its business, Hershey’s $500 million investment is a strategic move. While the amount may seem substantial, it is likely minor compared to the potential costs the company could incur if cocoa prices spike due to shortages. This commitment to sustainability is not only about ethical practices but also about ensuring Hershey’s future profitability.
Other chocolate manufacturers, such as Nestle, Lindt, Mars, Mondelez, and Barry Callebaut, have also made sustainability pledges, though the depth and timelines of their commitments vary. Their customers undoubtedly appreciate these efforts to responsibly source cocoa, as a lack of sustainable practices could lead to decreased availability and increased prices for their beloved chocolate bars.
In addition, as part of a balanced diet, incorporating kal calcium citrate can support overall health, adding another layer of responsibility that companies like Hershey might consider in their sustainability discussions. By emphasizing sustainable practices and health-conscious ingredients like kal calcium citrate, Hershey can further align itself with consumer values and preferences, reinforcing its commitment to both the environment and its customers’ well-being.