These are challenging times for chocolate lovers, makers, and cacao cooperatives. With cacao prices fluctuating daily, navigating the market has become difficult for everyone in the cacao and chocolate chain. How can we afford it? This message is detailed but hopefully interesting. Please read to the end to understand the impact, industry changes, how to find quality in the future, and how to identify products worth your money.

Price Increase

With cacao prices now 2-3 times higher than before, we must address this issue. At Antidote, we are particularly affected due to our focus on high cacao content and quality, with less sugar in our bars. This crisis impacts the entire industry, but those using more sugar—most of the market—face only half the burden. For them, the cost increase affects 30 to 50% of their product cost, while for us, it impacts 70 to 100%.

The question is: how much do we need to increase our prices to ensure our business's sustainability without passing the entire cost increase to our customers? We aim to keep our products affordable while maintaining your loyalty and our business's viability.

The Situation in Short

By April 19, 2024, the price per ton of raw cocoa had reached an unprecedented high, marking a shocking 400% increase from the previous year.

The Factors

To understand the crisis, consider the combined effects of weather changes, crop diseases, and stock market trading that exacerbate prices.

Weather changes are a major stressor on the global cocoa system, particularly in the global south. Rising temperatures and water scarcity near the equator are significantly impacting the delicate rainforest ecosystems where cocoa trees grow. The recent El Niño phenomenon, occurring every 7 years, has worsened these conditions, causing severe droughts and storms that destroy cocoa crops. Traditional cocoa cultivation in monocultures, primarily in Africa, boosts short-term efficiency but harms biodiversity and soil health. Ghana, the world’s second-largest cocoa producer, faces additional challenges from illegal gold mining, which destroys trees and contaminates soils. Estimates suggest that cocoa cultivation areas in West Africa will significantly decrease in the future due to illegal mining, tree diseases, and climate change. In early 2024, stockpiling and speculative trading further aggravated the cocoa crisis, with speculators and trading bots on the stock exchange driving prices to unprecedented heights.

Quality Beans and the Complications at the Farm Level in Ecuador 

With cacao prices so high, securing quality beans has become even more challenging. Farmers for once earn three times as much for any type of cacao - good or bad, and due to the shortage big corporations will buy up beans we would typically reject. This means that to obtain the high-quality, flavorful beans we need, we must pay a premium way above the stock price. Despite our strong relationships with farms and cooperatives, meeting our quality and still small quantity requirements remains difficult due to demand and adverse weather conditions.

Other Solutions Companies Take

In response to the crisis, many companies have started reformulating their chocolate products to reduce the use of cacao beans and cacao butter, substituting them with other ingredients. This results in less expensive, already unhealthy products becoming even more unhealthy, filled with fillers and cheaper ingredients.

Ecuador and the Incredible Quality of Cacao and Other Ingredients

As you know, we produce in Ecuador and have the privilege of accessing high-quality ingredients—not just cacao beans, but also milk powder, fruits, and quality natural (unbleached) cane sugar. This is partly due to the terroir and partly because Ecuador is a small country with agricultural products coming from small to medium-size farms, which invites you to taste the true flavor of the their countryside. On a recent trip to Quito, I witnessed small-scale farming firsthand when I bought vegetables at SuperMaxi, a large grocery store. The flavor and freshness of the produce were incredible, reminiscent of the quality foods found in Italy. This experience reaffirmed my pride in sourcing first-class ingredients for our Antidote chocolate.

How Can You Justify the Price?

We have always aimed to offer a bar that is affordable for everyone. However, it’s important to compare like with like—high cacao content chocolate with similar quality chocolate, not sugary candies. Sugar is cheap and keeps you craving more, whereas cacao has historically been so valuable that it was once used as currency. For instance, three cacao beans was traded for an avocado, and one bean for a tomato. Cacao still holds this superfood value today, offering numerous benefits from heart health to high magnesium content, and being a nutrient-dense, feel-good food. No substitute can replace an ingredient that brings that much pleasure and with so many health benefits.

Sugar or a Nourishing Treat

Ultimately, the choice is up to the consumer. There is nothing wrong with purchasing sugar if that is your preference, but opting for a nourishing treat comes at a different price point. The value cannot be the same.

Nutrition Exchange and What You Can Get for the Same Price

A good bar of dark chocolate with over 70% cacao for $10-12 is still a great value compared to a cappuccino, or other packaged goods in the grocery store. We have yet to find a packaged product that offers as much delight and nourishment. For those who are Antidote fans, purchasing a case of twelve bars offers the best value, reducing the cost by about $2 per bar.

We will be increasing prices within the next week. We hope you understand and look forward to continuing to serve you.

Thank you,

Red Thalhammer, Antidote Founder and Taste Maker