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Binge Now: Chocolate Prices May Spike
Soaring cocoa prices slim down candy makers' profit margins
By Rob Quinn
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Posted Feb 13, 09 10:52 AM CST
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(Newser)
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Soaring cocoa prices have left chocolate makers wondering how far they can hike prices without souring business, the Wall Street Journal reports. Crop woes in Africa have kept cocoa pricey despite the global commodities slump. Chocolate companies are mostly holding prices steady for now but many are expected to fatten their slim profit margins after the Valentine's Day rush.
Sales of chocolate rose 2.3% in the US last year despite the downturn, but retailers say shoppers are scaling back their Valentine's Day spending this year. To avoid passing on cocoa prices to consumers, high-end chocolatier Godiva has cut back on fancy packaging and replaced truffles with solid chocolate in its boxes.