Chocolate makers Hershey and Cadbury are set to raise prices again to respond to record cocoa prices, even as inflation-hit consumers cut purchases and company profits suffer, Reuters reported, citing Agerpres.

Cocoa prices have doubled in the past 12 months, hitting a series of record highs in recent weeks as supplies of cocoa beans dwindle. Chocolate producers passed on the increased costs to consumers without significant changes in demand.

But in their latest quarterly reports, chocolate makers Hershey and Mondelez showed that, unlike last year, shoppers have recently started to cut back on their purchases, prompting them to revise their sales forecasts.

Hershey CEO Michelle Buck said last week that “given cocoa prices, we are going to use all the tools at our disposal, including pricing policies, to manage our business.”

Consumers bought fewer Kisses and Reese’s cups at the end of last year, and Hershey’s sales fell 6.6% in the final quarter of last year, a trend executives say will continue this year.

The Hershey Company decided to resort to layoffs to keep costs under control.

Chocolate producers point the finger at cocoa bean prices

For its part, the Mondelez group, which makes Milka and Cadbury chocolates, also intends to raise prices to cover rising prices for cocoa beans, company executives said at a meeting with analysts in late January.

However, there is a risk that retailers in Europe will react to these increases, leading to lower sales in the region, Mondelez executives acknowledged. Mondelez chocolate prices in Europe, the company’s biggest market, rose 12 to 15 percent last year, CEO Dirk Van de Put said on a call with Wall Street analysts in January.

The same company revisited its premium Toblerone brand last year, launching Tiny Toblerone mini chocolates in the US and Toblerone Truffles in Europe.

Swiss chocolate truffle maker Lindt & Sprungli is trying to respond to rising cocoa prices through efficiency gains and a “predictive procurement strategy,” a spokesman said.

“The rest of the costs were carried over through price increases, with high cocoa prices being the main reason for this increase,” the spokesman added.

According to Dan Sadler, an analyst at market research firm Circana, consumers will be more selective when buying chocolate as manufacturers raise prices again.

“A reduction in prices is not expected in the near future. Confectionery manufacturers have been protected during periods of high inflation, but we have now reached a point where affordability will be tested,” said Dan Sadler.