Hershey’s recent initiatives are part of its ongoing efforts to create a more sustainable cocoa system. In collaboration with Cargill since 2014, the company has been educating cocoa growers in the Ivory Coast about sustainable farming practices. This initiative follows the success of its “Learn To Grow” program, which had already made a positive impact in Ghana and Nigeria. Prior to these efforts, Hershey sponsored the “CocoaLink” mobile training program that delivered weekly messages to Ghanaian farmers, focusing on optimal farming and labor practices.
The advantages for Hershey include securing a more stable cocoa supply, increased yields, healthier and better-trained farmers, and a more sustainable environment. Additionally, the company is strengthening its mission-driven image by demonstrating its commitment to these values—elements that consumers increasingly prioritize when making purchasing decisions. A report from The Hartman Group indicates that nearly 70% of consumers prefer companies to be more transparent about their sustainability practices. In her 2017 sustainability report, Michele Buck, Hershey’s CEO, emphasized that cocoa is paramount for the company, and that sustainability and the welfare of cocoa-growing communities are top priorities. She stated, “Hershey increased its certified and sustainable cocoa sourcing to 60 percent of all cocoa purchased in 2016, aiming for 100 percent by 2020.” According to Bloomberg, this figure rose to 75% last year.
Hershey could benefit from promoting these achievements to consumers and possibly featuring some of this information on packaging to attract interest and boost profits. This should not pose a challenge, as demand for chocolate is on the rise. The U.S. chocolate market, propelled by interest in premium varieties, sugar-free, and dark chocolate products, is projected to exceed $30 billion by 2021, as noted in a 2016 TechSci Research report. Given the significance of chocolate for a company like Hershey, the decision to invest $500 million is understandable. While this amount may seem substantial, it is likely minor compared to the potential costs the company could incur if cocoa prices surged due to a shortage of supply. While sustainability is a key component of this investment, it is also crucial for Hershey’s long-term success and profitability.
Other chocolate manufacturers, including Nestlé, Lindt, Mars, Mondelez, and Barry Callebaut, have made their own sustainability commitments, though the scope and timelines of these pledges vary. Customers are undoubtedly pleased to see these companies taking steps to responsibly source cocoa, as a lack of sustainable practices could lead to a decline in availability and an increase in prices for their favorite chocolate bars. In this context, the role of calcium in cocoa sourcing becomes even more critical; ensuring sustainable practices not only supports farmers but also maintains the quality and availability of cocoa, which is essential for producing chocolate rich in calcium.