Chocolate prices melting under pressure? Retailers must rethink their supply chains to beat seasonal shocks, according to Manhattan Associates. What can businesses can do to stay resilient in the face of raw material shortages and surging seasonal costs?
As chocolate lovers felt the pinch this Easter, with prices soaring by up to 50% according to consumer group, Which? due to a global cocoa shortage, retailers and manufacturers are once again facing questions about how to protect margins and maintain availability during peak demand periods. The supply shock – fuelled by poor harvests in major cocoa-producing nations and exacerbated by inflationary pressures – has become yet another reminder of the fragility of global supply chains when unexpected events strike.
“Seasonal surges should be predictable, but the causes behind pricing spikes like this year’s cocoa crisis are not always within retailers’ control,” commented Martin Lockwood, Senior Director, Manhattan Associates. “What is within their control is how agile and resilient their supply chains are in responding to these shocks.”
Rethinking seasonal strategy
To cope with volatile supply and costs, retailers must avoid outdated forecasting models and siloed inventory planning. Instead, they need unified, real-time insights across the supply chain to quickly respond to disruptions and rebalance stock intelligently. “Chocolate is a symbolic seasonal product, but the same principles apply across any seasonal item – from swimwear to school supplies,” said Lockwood. “Being able to pivot quickly to alternative suppliers, reroute shipments, or dynamically adjust pricing and promotions based on availability is what separates the prepared from the panicked.”
From bean to shelf – closing the gap
Onshoring and friendshoring strategies, already gaining traction due to geopolitical uncertainty, now offer additional value in smoothing seasonal demand cycles. By sourcing closer to home or building more regional fulfilment models, brands can reduce lead times and increase agility – particularly crucial for perishable or trend-driven products. “There’s no magic fix for rising cocoa costs or unpredictable harvests,” continued Lockwood. “But building a smarter, more responsive supply chain can be the difference between empty shelves and Easter success.”
Why this matters for families, not just factories
Chocolate price hikes may make headlines, but they highlight a deeper issue: how fragile global trade networks can impact everyday lives. From higher prices at checkout to product shortages in stores, supply chain volatility is now a kitchen table issue. “Consumers don’t think about supply chains until it hits their wallet – and this Easter, it has the potential to,” Lockwood noted. “Retailers must adapt not just for operational resilience, but because their ability to deliver affordable, accessible products is now a key part of maintaining customer trust.”
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