Chocolate manufacturers are finding more room to repair margins. Persuading shoppers to buy more remains harder.
Third-quarter results from Mondelēz International and Hershey illustrate that distinction. Mondelēz reported positive volume/mix alongside modest overall pricing growth. Hershey’s North American confectionery business delivered sharply higher profitability despite a substantial volume/mix decline. Its international operations faced pressure on both sales and earnings.
For the global chocolate industry, the results suggest a recovery that depends on where companies sell, how much they charge and whether consumers still see value in their products.
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Mondelēz, the owner of Cadbury and Milka, reported organic revenue growth of 2.1%, with volume/mix contributing 1.8 percentage points and pricing 0.3 points. Its adjusted gross margin rose 3.8 percentage points to 34.2%, supported by lower raw-material costs, manufacturing productivity, favourable volume/mix and higher net pricing.