Hershey’s Sweet Panic: Why The Chocolate Giant Wants to Hoard Cocoa

Hershey’s Cocoa Grab: An Alarming Move

Hershey Co., the maker of those Reese’s Cups you impulsively grab at the checkout line, is reportedly asking the CFTC to approve a purchase of 90,000 metric tons of cocoa—more than nine times what the New York exchange typically allows. That’s about 5,000 shipping containers’ worth of the stuff. Let that sink in: Hershey isn’t just playing the market; it’s trying to corner it.

Bloomberg first broke the story, revealing Hershey’s frantic attempt to lock down cocoa as global supplies tighten. Cocoa prices skyrocketed in 2024, nearly tripling due to disease outbreaks and disastrous weather in West Africa. Now, 2025 looks even grimmer, and Hershey is taking no chances.

But don’t think for a second this is just about "business strategy." As Goldman Sachs' Natasha de la Grense put it, the outlook for confectionery inflation is "getting even more extreme." Translation? Chocolate might become the next luxury item while Hershey protects its margins.

Deja Vu: Hershey’s 2020 Playbook

This isn’t Hershey’s first rodeo. Back in 2020, the company exploited market dislocations to manage cocoa costs. JPMorgan analyst Ken Goldman thinks they might be pulling the same stunt here—but with an added layer of desperation.

Supply chain disruptions, rampant inflation, and the relentless weakening of fiat currencies have turned everyday commodities into battlegrounds. Hershey’s CFO, Steve Voskuil, hinted as much during a recent earnings call. The company is “well-hedged” for 2024, but 2025? That’s where things get dicey.

According to Voskuil, skyrocketing costs aren’t just about raw cocoa beans. Cocoa butter, liquor, and derivatives are all contributing to inflation. And with dwindling global stocks, Hershey’s cocoa grab looks less like a hedge and more like panic-buying.

Why You Should Care

Here’s the bigger picture: Hershey’s move isn’t happening in a vacuum. This is what happens when broken supply chains meet unchecked corporate power. And don’t expect Uncle Sam to step in. The CFTC, infamous for its cozy relationships with industry giants, will likely rubber-stamp this.

Meanwhile, you’ll foot the bill—whether it’s through higher chocolate prices or the ripple effects of inflation on other goods. The cocoa crunch is just the tip of the iceberg. Food, energy, and raw materials are all becoming commodities of desperation.

Wall Street analysts like Goldman’s Hugo Fuentes are already drooling over the chaos, advising clients to "go long cocoa" for big profits. But what happens when hedge funds and corporations lock up supplies? The average consumer gets priced out.

The Takeaway

This isn’t just about Hershey or chocolate. It’s about a global economic system teetering on the brink, where corporations hoard resources, governments enable them, and regular people are left scrambling.

Wake up. The same forces driving up cocoa prices will hit every corner of your life—fuel, housing, food. Start asking questions. Start taking steps to protect yourself.

Call to Action
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