Feb 13, 2024 - Business

Supply chains are like a box of chocolates...

A box of chocolates

Chocolate truffles are prepared and packaged at Katherine Anne Confections, an artisanal chocolate shop and cafe in Chicago. Photo: Scott Olson/Getty Images

The price of Valentine's Day chocolates is especially bitter this year, Nathan writes.

State of play: Cocoa futures "have skyrocketed," doubling over the last 12 months, CNN reports.

Between the lines: "Climate issues in West Africa – home to more than 60% of global cocoa production — are damaging crop yields, constraining cocoa supply and causing prices to soar," according to CNN.

  • Candymaker Hershey is cutting up to 5% of its workforce as the increased cocoa prices undermine its profitability, Reuters reported.

What they're saying: "Given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business," Hershey CEO Michele Buck told investors on Thursday.

💭 Nathan's thought bubble: I've been trying to cut down on sugar lately — little did I know that this would amount to a savings plan, too.

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This story was an excerpt from Axios Closer, a recap on the day's biggest business stories.

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