If cocoa prices reverse trend
News of the world’s top cocoa producers attempting to gain great influence over the supply of cocoa to boost prices stands to affect top manufacturers using cocoa (CHOC) (NIB) as a raw material in their production process. The price of cocoa has been heading south over the past year on account of excess supply which has served the chocolate factories well.
Chocolate manufacturers stocks to watch
However, as Ivory Coast and Ghana, which together produce 60% of the world’s cocoa, resolve to obtain more control over world cocoa prices, chocolate manufacturers will be watching these developments closely. Here’s a list of the top chocolate manufacturers of the world (ACWI) (VTI). These are stocks most vulnerable to a reversal in the trend being followed by the price of cocoa currently.
Mars Incorporated, the makers of Snickers, Twix, M&Ms, Bounty, Galaxy, and many more chocolates, is the world’s top chocolate manufacturing company with $18 billion in net sales recorded in 2016. Mondelēz International (MDLZ), the owner of Kraft Foods (KFT) and Cadbury, the seller of world-leading chocolates including Toblerone, Dairy Milk, Milka, Ritz etc, stands second with $12.9 billion worth of net sales recorded in 2016. Other leading chocolate manufacturers include the Italian Ferrero Group, Japan-based Meiji (MEJHY), Switzerland-based Nestlé S.A. (NESN.VX), American Hersheys (HSY), and Europe’s Lindt & Sprüngli (LDSVF), among others.