Whitakers Faces Nearly £3m Cost Increase Amid Rising Cocoa Prices and Input Costs
Whitakers, a 135-year-old chocolate maker based in Skipton, North Yorkshire and run by fourth generation William Whitaker, is navigating significant cost pressures through 2024 and 2025. The company, which produces about 10 million chocolate pieces per week and has an annual turnover of around £12 million, reports nearly £3 million in cost increases. These rises are primarily driven by higher prices for chocolate and other raw materials.
Cocoa prices have surged sharply since 2023 due to drought and disease affecting supply in West Africa, particularly Ghana and Ivory Coast which produce about two-thirds of the world's cocoa. Global output dropped by about 14% last year, with UK chocolate inflation reaching around 17% in October. Whitakers uses roughly 1,000 tonnes of chocolate annually, facing a cost increase of around £5,000 per tonne. Brazil nuts, another key input, saw prices spike to approximately £15,000 per tonne.
In addition to commodity costs, Whitakers must contend with rises in wages, national insurance contributions, and a near £100,000 increase in business rates expected next year. Despite these challenges, Whitakers has maintained its product quality and traditional recipes. While some major chocolate brands have reduced cocoa and milk solids, rebranding products as "chocolate-flavour," Whitakers has passed higher costs to customers and adjusted product offerings by using chocolate coatings on lower-cost sugar-based centers.
The company emphasizes confidence in long-term market normalization while continuing to prioritize quality amid the current inflationary environment.
