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Everything You Need to Know About the Rise in Chocolate Costs

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October 23, 2024 at 4:52:12 AM PDT October 23, 2024 at 4:52:12 AM PDTrd, October 23, 2024 at 4:52:12 AM PDT

Everything You Need to Know About the Rise in Chocolate Costs

If you’ve been feeling deflated due to the rising Chocolate prices recently, you’re not alone. At Sephra, we understand the impact these costs are having on both businesses and consumers. Naturally, with such a drastic increase, there are many questions! We want to help our customers understand the key reasons behind the surge in Chocolate costs and explain how we are addressing these challenges.

Understanding The Surge In Chocolate Prices

The cost of Chocolate has seen a steep rise over the past year, with multiple factors contributing to this dramatic increase. Here’s a breakdown of the main causes:

1. Cocoa Bean Shortages

For the past three years, the cocoa industry has faced a consistent deficit in the supply of cocoa beans compared to global demand. Factors such as adverse weather conditions, plant diseases, and supply chain disruptions have significantly affected cocoa bean production. This shortage has made it increasingly difficult for Chocolate manufacturers to secure the raw materials they need, causing a rise in costs.

2. Diminished Quality Of Cocoa Beans

Due to the shortage, the cocoa beans available in the market are often of lower quality. This affects the ratios of cocoa butter extracted from the beans. For companies like Sephra, which use Chocolate with a high cocoa butter content to ensure smooth flow through Chocolate Fountains without the need for additional oil or cocoa butter, this poses a particular challenge. Poor quality beans yield less cocoa butter, making it more costly to produce the premium Chocolate our customers love.

3. Skyrocketing Cocoa Prices

These factors have resulted in cocoa prices surging significantly. Between April 2023 and April 2024 the price per metric tonne of cocoa had jumped to an astounding increase of 365%. This hike in cocoa prices has had a ripple effect throughout the Chocolate industry, making it more expensive for manufacturers to produce high-quality Chocolate.

How Sephra Is Navigating These Challenges

Despite these obstacles, we remain committed to providing our customers with high-quality Chocolate. We passionately believe that the Belgian Chocolate is among the best on the market and that its premium status is justified due to its quality, performance in Chocolate Fountains, and delicious, luxurious taste. However, we also understand that these price hikes can be tough for our customers, which is why we are exploring ways to support you during these challenging times.

Introducing Affordable Alternatives

Sephra Chocolate Flavored Melts have become a popular, cost-effective choice among our customers. Designed to work seamlessly in Chocolate Fountains, this product offers the same smooth flow as our Belgian Chocolate. By replacing chocolate liquor and cocoa butter with a blend of cocoa powder and vegetable oil, we are able to offer it at a more affordable price. Its versatility makes it perfect not only for Chocolate Fountains but also for fondue, coating, baking, and drizzling.

Launching a New Blended Product

We understand that some of our customers are hesitant to serve a lower quality Chocolate, even at a reduced price. In response to the cocoa shortage and price increases, we are launching a new fountain-ready blended product. This option combines Couverture and Compound Chocolate, providing a middle-ground solution for those seeking both quality and cost efficiency. This new product will allow you to maintain the premium feel of Sephra Chocolate at a more accessible price.

A Commitment to Quality and Innovation

While the cocoa market is facing significant challenges, we at Sephra are committed to maintaining our high standards and offering our customers alternative solutions. We recognise that the rise in Chocolate costs is incredibly difficult, but we believe our efforts to diversify our product offerings can help ease this burden.

Stay tuned for more information on our new blended product launch in the coming weeks. In the meantime, we hope this insight provides a clearer understanding of why Chocolate costs have risen and how we are working to support you with alternative options. We thank you for your continued support.