Cocoa Prices Drop to Two-Year Lows Just as Hot Chocolate Season Arrives
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 27 2025
0mins
Should l Buy HSY?
Source: Benzinga
Cocoa Prices Decline: Cocoa futures have dropped to their lowest levels in nearly two years, providing a potential margin boost for chocolate manufacturers facing high ingredient costs and price-sensitive consumers during the holiday season.
Impact on Chocolate Makers: The decline in cocoa prices could help companies like Hershey, Mondelez, and Nestlé improve profitability by either maintaining pricing power or offering discounts to attract consumers, especially as seasonal demand increases.
Seasonal Demand Considerations: The holiday season typically sees a rise in chocolate demand, which, when combined with falling cocoa prices, could lead to positive earnings outcomes if companies manage to stabilize volume.
Caution on Demand: Despite the favorable pricing situation, there are concerns about softening global demand for cocoa, which may affect consumer spending and ultimately impact the profitability of chocolate makers if demand does not rebound as expected.
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Analyst Views on HSY
Wall Street analysts forecast HSY stock price to rise
17 Analyst Rating
3 Buy
14 Hold
0 Sell
Hold
Current: 191.910
Low
181.00
Averages
196.27
High
222.00
Current: 191.910
Low
181.00
Averages
196.27
High
222.00
About HSY
The Hershey Company is a snacks company. The Company's segments include North America Confectionery, North America Salty Snacks and International. The North America Confectionery segment is responsible for its traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes its business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. This segment also includes its retail operations. The North America Salty Snacks segment is responsible for its salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans fat free snacks, pretzels and other snacks. The Company's portfolio includes chocolate and confectionery brands such as Hershey's, Reese's, Kisses, Kit Kat, Jolly Rancher, Ice Breakers, LesserEvil, Shaq-a-licious alongside salty snacks, including SkinnyPop and Dot's Homestyle Pretzels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technical Indicator Analysis: Utilizing a custom MACD configuration, a definitive bullish crossover was observed on May 4, indicating a momentum shift, with the blue line clearly above the yellow signal line, confirming the strength of this new upward momentum and suggesting further price increases.
- Relative Strength Index: Hershey's RSI fell below 30 on April 14, entering oversold territory, but provided a buy signal when it rose above 30 on May 5, indicating a potential for sustained upward movement in the stock price.
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- Social Media Campaign: Team Rocket's takeover of Hershey's Instagram, where they post character-driven content related to the chocolates, enhances the fun of the brand story while drawing fan attention and participation, thereby increasing social media engagement rates.
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- Live Webcast Arrangement: The event will feature a live audio webcast available on Hershey's investor website, providing convenient access for investors to stay updated on the company's latest developments and enhancing transparency.
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- Live Webcast Arrangement: The event will be streamed live on Hershey's investor website, ensuring that investors can access the latest company updates in real-time, thereby enhancing transparency and investor confidence.
- Company Background Overview: The Hershey Company is a leading snacks company with over $11.7 billion in annual revenue, employing more than 20,000 people and offering over 85 brands across approximately 65 countries, showcasing its strong market presence.
- Commitment to Social Responsibility: Since its founding, Hershey has maintained a commitment to fair, ethical, and sustainable practices, focusing on helping children succeed through equitable access to education, reflecting the company's sense of social responsibility.
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- Market Adaptability: Despite challenges from changing tastes, Coca-Cola's low/no-calorie beverages accounted for nearly one-third of global volume in 2024, with 32 brands each generating over $1 billion in annual sales, demonstrating its adaptability to diverse consumer demands.
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- Limited Edition Release: Hershey's Kisses partners with The Pokémon Company to launch a limited edition chocolate collection featuring 151 Poké Ball foil designs and 10 new Team Rocket foils, aimed at engaging fans and enhancing brand interaction.
- Digital Interactive Experience: Consumers can scan QR codes on each chocolate pack to access a digital collection hub, track their collection progress, and enter for a chance to win prizes, thereby increasing consumer engagement and brand loyalty.
- Social Media Campaign: Team Rocket recently took over Hershey's Instagram, posting in-character content that boosted brand visibility and social media interaction, attracting more attention from younger consumers.
- Diverse Product Line: In addition to chocolates, Pirate's Booty is launching Pokémon-themed snacks with interactive packaging and family activities, further expanding Hershey's market reach and product diversity.
See More
Hershey Stock Shows Signs of Rebound
- Price Recovery Trend: Hershey's stock has dropped 25% from its March 1 peak of $239.48, but the April 30 earnings report revealed significant growth in first-quarter sales and revenue, leading to a rebound that creates an ideal mean reversion scenario.
- Technical Indicator Analysis: Utilizing a custom MACD configuration, a definitive bullish crossover was observed on May 4, indicating a momentum shift, with the blue line clearly above the yellow signal line, confirming the strength of this new upward momentum and suggesting further price increases.
- Relative Strength Index: Hershey's RSI fell below 30 on April 14, entering oversold territory, but provided a buy signal when it rose above 30 on May 5, indicating a potential for sustained upward movement in the stock price.
- Trade Strategy Setup: To capitalize on this rebound, a 190/195 bull call spread is recommended, targeting a price of $195; if achieved by expiration, this strategy could yield a 100% return on investment, with risk limited to $250 per contract.
See More
Hershey Collaborates with Pokémon to Celebrate 30th Anniversary
- Limited Edition Chocolate Launch: Hershey's Kisses collaborates with The Pokémon Company to release a limited edition chocolate collection featuring 151 collectible Poké Ball foil designs, including 10 new Team Rocket foils, aimed at attracting consumer interest in collectibles and enhancing brand engagement.
- Social Media Campaign: Team Rocket's takeover of Hershey's Instagram, where they post character-driven content related to the chocolates, enhances the fun of the brand story while drawing fan attention and participation, thereby increasing social media engagement rates.
- Digital Collection Hub: Consumers can scan the QR code on each chocolate pack to access a digital collection hub, allowing them to track their collection progress and enter for prizes, further enhancing consumer engagement and brand loyalty.
- Diverse Product Line: In addition to Hershey's Kisses, Pirate's Booty is launching Pokémon-themed snacks with interactive packaging and family activities, aiming to make back-to-school season more exciting and meet the needs of both parents and children.
See More
Hershey CFO to Participate in Goldman Sachs Forum
- Executive Participation: Hershey's CFO Steve Voskuil will participate in a fireside chat at the Goldman Sachs Global Staples Forum on May 12, 2026, showcasing the company's leadership in the industry and likely attracting investor interest.
- Live Webcast Arrangement: The event will feature a live audio webcast available on Hershey's investor website, providing convenient access for investors to stay updated on the company's latest developments and enhancing transparency.
- Company Overview: Hershey employs over 20,000 people globally and generates more than $11.7 billion in annual revenue across 85 brands, demonstrating its strong presence and market influence in the snacks industry.
- Commitment to Social Responsibility: Since its founding, Hershey has maintained a commitment to fair, ethical, and sustainable practices, focusing on helping children succeed through equitable access to education, reflecting its deep sense of social responsibility.
See More
Hershey CFO to Participate in Goldman Sachs Forum
- Executive Participation: Hershey's CFO Steve Voskuil will participate in a fireside chat at the Goldman Sachs Global Staples Forum on May 12, 2026, highlighting the company's leadership in the industry.
- Live Webcast Arrangement: The event will be streamed live on Hershey's investor website, ensuring that investors can access the latest company updates in real-time, thereby enhancing transparency and investor confidence.
- Company Background Overview: The Hershey Company is a leading snacks company with over $11.7 billion in annual revenue, employing more than 20,000 people and offering over 85 brands across approximately 65 countries, showcasing its strong market presence.
- Commitment to Social Responsibility: Since its founding, Hershey has maintained a commitment to fair, ethical, and sustainable practices, focusing on helping children succeed through equitable access to education, reflecting the company's sense of social responsibility.
See More
Coca-Cola and Hershey Present Dividend Investment Opportunities
- Coca-Cola's Steady Income: Coca-Cola has maintained 64 consecutive years of dividend increases, generating $12.5 billion in free cash flow last year while paying nearly $11 billion in dividends, showcasing its robust capital-light business model and expected continued income for investors.
- Market Adaptability: Despite challenges from changing tastes, Coca-Cola's low/no-calorie beverages accounted for nearly one-third of global volume in 2024, with 32 brands each generating over $1 billion in annual sales, demonstrating its adaptability to diverse consumer demands.
- Hershey's Growth Potential: Despite being impacted by soaring cocoa prices, Hershey has maintained 96 years of consecutive dividend payments, generating $1.85 billion in free cash flow and paying $1.1 billion in dividends last year, with projected adjusted sales growth of 2.5% to 3.5% in 2026, indicating resilience in adversity.
- Brand Diversification Strategy: Hershey achieved a 7.9% organic sales increase in Q1, driven by strong demand for its candy and snack brands, with management focusing on meeting diverse consumer preferences across occasions, ensuring sustained growth in the future.
See More
