Hershey Expects Cocoa Imports to Drive Up Tariff Costs -- Market Talk

Dow Jones

May 01, 2025

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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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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 01, 2025 10:25 ET (14:25 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Hershey Expects Cocoa Imports to Drive Up Tariff Costs -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHershey Expects Cocoa Imports to Drive Up Tariff Costs -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-05-01 22:25</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 01, 2025 10:25 ET (14:25 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4533","symbol_name":"AQR资本管理(全球第二大对冲基金)","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2532063820","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2532063820","pubTimestamp":1746109500,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4533":"AQR资本管理(全球第二大对冲基金)","BK4588":"碎股","BK4585":"ETF&股票定投概念","BK4212":"包装食品与肉类","HSY":"好时","BK4532":"文艺复兴科技持仓","BK4504":"桥水持仓"},"translate_title":"好时预计可可进口将推高关税成本——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HSY":1},"content_text":"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) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  May 01, 2025 10:25 ET (14:25 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}