Monday, May 9, 2011

Easter egg woe for chocolate makers as costs rise and prices are slashed

Everyone expects Easter weekend to be a huge weekend for chocolate to bring in a huge profit. This Easter chocolate makers are feeling the pain of their favorite chocolate eggs and bunnies not being as popular. Because of the low demand the chocolate makers are forced to lower prices. Even popular favorites such as Cadbury's Creme Eggs are finding it hard to make a profit with the rising prices of sugar and cocoa. The price inflation of these items makes the cost of production higher and low demand causes the price to remain low. Many stores use the deals on these Easter favorites to draw people into their stores so they can make a profit with other products. Although the demand of these items is obviously higher this time of year the profits are still not comparing to previous years. The amount of independent chocolatiers is slowly decreasing as large companies take over the marketplace. Rising prices of necessary ingredients may just cause these independent chocolatiers more discouragement from continuing in their business. While the Easter bunny may be enjoying the low prices the manufacturers and sellers are finding it hard to make their usual profit.

1 comment:

  1. Mmm nothing goes better with chocolate then nice side of microeconomics :). While it is unfortunate that chocolate sales were down this Easter in comparison to other Easters, there is still hope to the future. Here's a question...who wants a chocolate Easter bunny after Easter? I'll tell you who, the smart consumer! With demand decreasing everyday for Easter candy (more so), there are no doubt some sweet deals out there for the individual to find. A core principle of microeconomics is that the individual will always look out for the best deal on anything and everything. I myself am partial to Reese's- I am addicted. Now that Easter is over, I have no doubt that Reese's Easter eggs will be on sale and I will buy as many as possible. So while sales didn't quite hit the mark this year for candy sales...chin up! Hungry consumers will still have a sweet tooth for candy AND savings!