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Diving overview:
- According to its latest ESG report released last week, The Hershey Company plans to establish full sourcing visibility into cocoa production in both Côte d'Ivoire and Ghana by 2025, expanding its already 100% independently verified cocoa supply chain.
- As of December 2023, the company has invested more than half (51%) of its $500 million investment commitment, “Cocoa For Good,” according to the report. The investment seeks to build “long-term partnerships that allow farmers to specialize and grow.” said.
- Hershey achieved 89% sourcing visibility in 2023, and the company aims to achieve its goal of polygon mapping 100% of cocoa farmers in both regions by 2025, according to the report.
Dive Insights:
The Hershey Company hopes to improve its efforts. Achieve our commitments to ensure traceability and build deforestation-free supply chains.
chocolate industry Cocoa supply chains have been disrupted. The past year has been difficult, and the side effects are being passed on to consumers through shortages and rising prices. As a result, some producers said they would experiment with new product formulations to avoid price increases.
In addition to cocoa, the report identified five other priority areas for Hershey, including: Responsible sourcing and human rights, environment, people, youth and communities.
“Hershey remains focused on strengthening our business and creating the greatest impact in our focus areas,” said Michele Buck, CEO of The Hershey Company. “There is more work to do on this journey, but the collective efforts of our team, working with leading organizations and key stakeholders, will continue to drive us forward.”
Hershey said it has an important role to play in improving the cocoa supply chain and farmers' livelihoods, but part of the responsibility also lies with its partners.
The company's partners include the European Chocolate, Biscuit and Confectionery Industries Association, the EU Cocoa Federation, the Ghana Cocoa Commission and the Ministry of Water and Forests of the Government of Côte d'Ivoire.
According to Hershey, a significant portion of today's cocoa supply chain is made up of millions of small-scale rural farmers with low yields and low incomes, particularly in West Africa, and improving the livelihoods of these farmers along with alleviating supply chain issues is a top priority. .
“As a leading chocolate manufacturer, the volatility of cocoa is unprecedented,” Buck said.
“Cocoa remains our top priority, and while there is still more work to do, we are proud of the continued progress we are making toward greater visibility and engagement with the farmers who grow this important ingredient.”
In addition to cocoa, the company has also invested in sustainable sourcing for priority ingredients and ingredients, bringing it 86% of its goal of achieving fully sustainable sourcing by 2025.
