Slumping Cocoa Prices May Boost Hershey's Chocolate Earnings
- Ample bean supplies may cap ingredient cost, analyst says
- Cocoa futures slump 10% this month to seven-week low
Photographer: Scott Eells/Bloomberg
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Slumping cocoa prices may sweeten prospects for Hershey Co.’s chocolate margins, according to Sanford C. Bernstein & Co. analyst Alexia Howard.
Cocoa futures in New York dropped 10 percent this month, touching a seven-week low on Thursday. A decline in the chocolate ingredient may help counter the rising costs of freight, packaging and wages this year, Howard said in a note.