Jul 23, 2025 - Business

Hershey to hike prices on Kit Kat, Reese's, more

Chrissy Suttles

Illustration of a chocolate bar wrapped in a 100 dollar bill wrapper — Illustration: Sarah Grillo/Axios

The Hershey Company plans to raise prices on popular candy like Kit Kat Bars, Almond Joy and Reese's this year due to the soaring cost of cocoa.

The big picture: The Central Pennsylvania-based candy maker told retailers it will raise chocolate prices by a low double-digit percentage, citing climate-driven crop failures in West Africa — which produces nearly 60% of the world's cocoa, Bloomberg first reported.

Zoom in: The famous confectioner is also revamping its price pack strategy by shrinking product sizes — a calculated move to tackle inflation that's often labeled "shrinkflation."

Yes, but: Hershey says 75% of its products will still be priced under $4.

Friction point: Hershey said the price hike isn't tied to tariffs or trade policy, but the company in May projected $15–$20 million in tariff costs last quarter, CNN reports.

The bottom line: The price hikes follow similar moves by Lindt and Oreo and Cadbury-maker Mondelez.

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Hershey to hike prices on Kit Kat, Reese's, more

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