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| Credit first-generation German-American Robert Lincoln Strohecker, known in confectioner’s lore as the "Father of the Chocolate Easter Bunny." |
| The source of Strohecker’s legend was a massive 5-foot-tall (or perhaps even taller) solid chocolate rabbit he displayed outside Pennsylvania retailers in 1890 to popularize smaller versions of his new Easter sweets born of German tradition. |
| Strohecker's chocolate Easter bunny sales gimmick was an instant sensation. Americans purchase about 90 million Easter bunnies each year, according to WalletHub. |
| The chocolate Easter bunny business he inspired, however, is being crippled by inflation here in 2024. |
| Cocoa futures have doubled just since the start of 2024, according to industry data, after soaring 60% in 2023. |
| Rising costs, including on energy and transportation, are being met by lower supplies. |
| The International Cocoa Organization reported last month that cocoa production is down 11% this year, citing poor weather conditions in West Africa, which produces two-thirds of the world's crop. |
| Many farmers blame climate change for their poor crops. Cacao trees only grow close to the equator and are especially sensitive to changes in weather. |
| Sugar prices are also rising. Futures for a pound of sugar are up about 8% in 2024, after rising 2.7% in 2023. |
| Big chocolate companies like Hershey's and Cadbury maker Mondelez have been passing those costs on to consumers — and then some: Hershey's net profit margins ticked higher to 16.7% in 2023 from 15.8% in 2022. Mondelez reported a jump to 13.8% in 2023 from 8.6% in 2022. |
| Hershey raised prices on chocolate overall last year as inflation surged and said it increased prices on some grocery items early in 2024. |
| Both companies reported shrinking sales volumes for their most recent quarters as consumers grow tired of paying higher food prices. |
| Chocolate giant Hershey witnessed a 6.6% decline in sales volume in the fourth quarter of 2023 and announced job cuts in February. |
| Here in the United States, the National Retail Federation expects spending on chocolate Easter eggs and bunnies to drop from $3.3 billion in 2023 to $3.1 billion in 2024 — a potential 6% decrease. Its latest survey shows that consumers are expected to spend $3.1 billion on candy for Easter this year, or $24.78 per person. That's down from $3.3 billion, or $26.31 per person a year ago. |
| "Whatever is going on in the world, people don't give up shopping for chocolate," said Maegan Dec, president of Hilliard's Chocolates, a 100-year-old, family-owned business in Easton, Massachusetts. |
| She said business this year remains unaffected, citing loyal customers seeking artisan chocolates. But the prospect of long-term rising costs and dwindling supplies is "scary." |
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