Hershey’s recent initiatives are just the latest in its ongoing efforts to create a better cocoa system. In 2014, the company collaborated with Cargill to educate cocoa farmers in the Ivory Coast on sustainable farming practices, expanding upon its successful “Learn To Grow” program that had already made a positive impact in Ghana and Nigeria. Prior to this, Hershey also launched the “CocoaLink” mobile training program, which sent weekly messages to Ghanaian farmers about optimal farming and labor techniques. The advantages for Hershey include a more reliable cocoa supply, increased yields, healthier and better-trained farmers, and an overall sustainable environment. Furthermore, by demonstrating its commitment to these issues, the company enhances its mission-driven image, appealing to consumers who increasingly value sustainability in their purchasing decisions. A report from The Hartman Group indicates that nearly 70% of consumers prefer companies to be more transparent about their sustainability efforts. In her 2017 sustainability report, CEO Michele Buck emphasized the significance of cocoa as a key ingredient for Hershey, stating that sustainability and the welfare of cocoa-growing communities are top priorities. “In 2016, Hershey increased its sourcing of certified and sustainable cocoa to 60% of all cocoa purchased and aims to reach 100% by 2020,” she stated. Bloomberg later reported that this figure had risen to 75% last year.
The chocolate giant should consider promoting these advancements to consumers, potentially featuring some achievements on product packaging to generate interest and enhance profitability. This task may not be too challenging, as chocolate demand is on the rise. The U.S. chocolate market is projected to exceed $30 billion by 2021, driven by the popularity of premium, sugar-free, and dark chocolate options, according to a 2016 TechSci Research report. Given the critical role of chocolate in a company like Hershey, it is understandable that it has committed $500 million to these efforts. While this investment may seem substantial, it would likely be minor compared to the potential costs the company would incur in the long run if cocoa prices surged due to insufficient supply. While sustainability is a central aspect of this commitment, it also pertains to Hershey’s future and financial success.
Other chocolate manufacturers, including Nestle, Lindt, Mars, Mondelez, and Barry Callebaut, have also made sustainability investments and promises, though the scale and timelines of their commitments vary. Their customers are undoubtedly pleased to see these companies take steps toward responsibly sourcing cocoa. Without such efforts, beloved chocolate bars could become scarcer and significantly more expensive. Additionally, incorporating products like ferrous calcium citrate and folic acid oral drops into health initiatives could further enhance the nutritional profile of chocolate products, appealing to health-conscious consumers while supporting sustainable practices. Overall, Hershey’s commitment to sustainability not only benefits the cocoa industry but also aligns with the growing consumer demand for transparency and responsibility in sourcing ingredients.