Mars Candy Prices Head Closer to Milky Way as Cocoa Prices Rocket

The price of your sweet tooth just went up! Mars Chocolate North America said on Wednesday it will raise its prices by an average of 7 percent "to offset rising costs," marking its first increase in three years.The price hike by the maker of Mars bars, Twix, M&Ms, Snickers and Skittles, follows a similar move by Hershey, the No. 1 candy maker in the United States. Hershey raised its chocolate prices last week about 8 percent due to soaring commodity costs. Mars Chocolate North America is a subsidiary of Mars Inc, the third biggest confectionery business globally next to Butterfinger-maker Nestle SA and Cadbury-maker Mondelez International, according to Euromonitor International. The cost of cocoa, a key ingredient in chocolate, has seen a meteoric rise in the past year, having climbed nearly 50 percent to a three-year high on Wednesday at $3,204 per tonne on ICE Futures. U.S. dairy prices have also soared.

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- Reuters