1025 ET - Just as cocoa prices are starting to moderate, Hershey is getting hit with tariff expenses. The candy maker expects tariffs to cost $15 million to $20 million in the current second quarter, and expenses could rise to $100 million per quarter in the second half of the year if they go unmitigated. Cocoa prices have retreated in the past few months, but now tariff costs are expected to be driven by cocoa imports and retaliatory levies from Canada, executives said during an analyst call. Cocoa can't be grown in the U.S., they said, so they are seeking an exemption on the crop. Hershey has built up inventory for the second quarter, lowering current costs, but is still developing mitigation plans for the rest of the year. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
May 01, 2025 10:25 ET (14:25 GMT)
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