Hershey’s recent initiative is just one of many efforts aimed at improving the cocoa supply chain. In 2014, the company collaborated with Cargill to educate cocoa farmers in the Ivory Coast on sustainable farming practices, building upon the success of its “Learn To Grow” program in Ghana and Nigeria. Prior to this, Hershey sponsored the “CocoaLink” mobile training program, which provided Ghanaian farmers with weekly updates on optimal farming and labor techniques.
The advantages for Hershey include a more reliable cocoa supply, increased yields, healthier and better-trained farmers, and a more sustainable environment. Additionally, the company is bolstering its mission-driven image by demonstrating its commitment to these values, which consumers increasingly prioritize in their purchasing decisions. A report by The Hartman Group reveals that nearly 70% of consumers prefer companies to be transparent about their sustainability efforts. In her 2017 sustainability report, Hershey’s CEO Michele Buck emphasized the significance of cocoa as a vital ingredient and stated that sustainability, along with the welfare of cocoa-growing communities, is a top priority. “Hershey increased its certified and sustainable cocoa sourcing to 60% of all cocoa purchased in 2016 and aims for 100% by 2020,” she noted. According to Bloomberg, this percentage rose to 75% last year.
Given the rising demand for chocolate, especially for premium, sugar-free, and dark varieties, Hershey may want to promote these accomplishments to consumers. According to a 2016 TechSci Research report, the U.S. chocolate market is expected to exceed $30 billion by 2021. Considering the importance of chocolate to Hershey’s business, it is no surprise that the company has committed $500 million to this cause. While this amount may seem substantial, it could be minimal compared to the potential costs of soaring cocoa prices due to supply shortages. This commitment to sustainability is not just about ethical sourcing; it is also crucial for Hershey’s future profitability.
Other chocolate companies, including Nestlé, Lindt, Mars, Mondelez, and Barry Callebaut, have also made sustainability investments and pledges, although the scope and timelines of their commitments differ. Their customers are likely pleased to see these companies take responsibility in sourcing cocoa, which is essential to ensuring that their favorite chocolate products remain available and affordable.
Moreover, consumers are increasingly looking for products that align with their health and wellness goals, such as those containing Puritan’s Pride Liquid Calcium Magnesium Citrate. This trend underlines the importance of sustainable sourcing and transparency in the food industry, as shoppers seek out brands that not only support environmental initiatives but also offer health benefits. By incorporating these values, Hershey and its competitors can strengthen their market positions and appeal to a growing demographic of health-conscious consumers.