STORY: CHOCOLATE PRICE INCREASES BY 92%

Jul 25, 2024

Chocolate Price Increases By 92%

Steep inflation impacts small business

Chocolate price increases 150% since May 2024
Price increase of £9000 per tonne since May 2023
Chocolate is ⅓ of Cake or Death’s total ingredients costs

Exeter bakery, Cake or Death, an e-commerce business sending boxed brownies across the UK, has seen a sharp rise in chocolate prices. The bakery has found the price of chocolate rose by an alarming 150% since it was last purchased in May 2023. Brownies are Cake or Death’s core product, which contain a high percentage of chocolate for flavour and texture. Chocolate makes up one third of the ingredients costs and inflation will have a huge impact on the business’s profit margins.

Climate change leading to poor harvests has been the cause of a huge shortage of chocolate this year. The conglomerates, along with independent businesses such as Cake or Death are anxious to secure supply. This April, Cake or Death were able to purchase two tonnes at the 2023 price. However when supply runs low in Autumn, the bakery will pay an extra £9000 per tonne. This may not even be the final price increase of the year.

Founder Katie Cross will not compromise on the quality of the product, or change the recipe. However with costs rising across the business, Cake or Death is finding it increasingly difficult to make profit. The bakery is looking at making savings in other areas of the business.