A Failed Crop Rattled the Chocolate Industry. Then Speculators Came. (2024)

FAQs

What changes is Tony's chocolate making to the chocolate industry? ›

We're working our beans off to end modern slavery and illegal child labor in the chocolate industry. We do it by using Tony's 5 Sourcing Principles to take direct responsibility for our supply chain and ending exploitation and poverty at the root of chocolate's bitter truth.

Cocoa farmers usually clear tropical forests to plant new cocoa trees rather than reusing the same land. That practice has spurred massive deforestation in West Africa, particularly in Ivory Coast. Experts estimate that 70% of the country's illegal deforestation is related to cocoa farming.

Brands in the U.S. market

In the U.S. chocolate market, two companies set the bar by which everyone else's performance is measured. Hershey and Mars claim the biggest share of the United States chocolate market. Hershey's share is about a third. Mars claims a bit more than a quarter of the market for its products.

Our mission is 100% slave free chocolate. To achieve this, we have to make the most amazing ethically produced chocolate, so we can help cocoa farmers create a better future for themselves and inspire other chocolate makers to follow our example. In other words, we want to change the mainstream chocolate industry.

We have never found an instance of modern slavery in our supply chain, however, we do not guarantee our chocolate is 100% slave free. While we are doing everything we can to prevent slavery and child labour, we are also realistic.

The first step in chocolate production is the cultivation of cocoa beans. Cocoa trees thrive in tropical regions, mainly in West Africa, but also Latin America and Southeast Asia. Cocoa farming drives deforestation, which releases significant amounts of carbon dioxide (CO2) into the atmosphere.

Farmers cut down trees to plant their crops, eliminating competition from surrounding plants and animals that may take away water or nutrients from the soil needed for growing cacao beans. This can cause erosion, which again increases the amount of sediment in waterways and reduces water supplies.

Additionally, the processing of cocoa beans and the production of chocolate milk involve energy-intensive steps that contribute to greenhouse gas emissions. However, it's important to note that the carbon footprint can vary depending on the sourcing practices and the proportion of cocoa used.

Beyond its namesake chocolates, Hershey also owns many well-known candy bar brands. This Switzerland-based company is known for premium chocolates Lindt, Ghirardelli, and Russell Stover.

Is Mars or Hershey bigger? ›

Hershey Co.

With a U.S. market share of about 23.6 percent in 2021, Hershey was the leading confectionery company in the United States, beating out Mars with almost one percent.

No, Nestlé does not own Hershey. Hershey is its own company, and it's one of the largest chocolate manufacturers in the world. However, Nestlé is a major player in the food and beverage industry, with a diverse portfolio that includes chocolate products among many others.

Tony's sourcing principles for slave free cocoa

We show that chocolate can be made differently, without slavery and exploitation. We've developed our own recipe for slave free cocoa with five ingredients. It enables the farmers to earn a living income.

In 2024, the trend towards healthier lifestyles significantly influences the chocolate industry. According to Innova Market Insights, health-related claims in food products have surged by over 20% in the past year, and chocolate is a big part of this movement.

The International Cocoa Organization (ICCO) predicts production will trail demand by 374,000 metric tons in the 2023-2024 season, the third straight shortfall. Chocolate maker Barry Callebaut AG sees a deficit of 500,000 tons, equal to about a 10th of the global market, and the company sees another shortfall next year.

One of the impacts of the Industrial Revolution on chocolate that still impacts us today is the improved texture, and as a result, the taste of chocolate products making them the creamy and rich way we know them to be today. Like many products in the early 20th century, advertising campaigns began about chocolate.