By Jesse Newman

Hershey said it is working to get cocoa exempted from tariffs, which are adding to pressure for the candy giant on top of high prices for its key ingredient.

The Pennsylvania chocolatier said Thursday that it is "engaging with the U.S. government" to seek an exemption, since cocoa can't be grown domestically.

Hershey expects tariff expenses to total $15 to $20 million this quarter. The company said it is also planning for continued inflation next year and preparing options to address cocoa costs, such as raising prices on its products.

Hershey buys cocoa products from suppliers, who source cocoa beans grown on farms around the world. West Africa accounts for about 70% of the global supply of cocoa beans, it says. The company has worked to fortify its supply chain to be more resilient against weather and geopolitical factors, Chief Executive Michele Buck has said.

Hershey said its biggest exposures are to tariffs on its cocoa imports and retaliatory tariffs from Canada. Without relief, the company expects tariff expense to increase later in the year as it works through the inventory it has on hand.

Executives said the unmitigated impact of tariffs could be up to $100 million per quarter in its third and fourth quarters.

Hershey is "using every lever at our disposal to get those tariffs changed," said Steve Voskuil, Hershey chief financial officer.

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May 01, 2025 09:41 ET (13:41 GMT)

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