Chocolate letters are 25 percent more expensive this year
Sinterklaas festivities on Saturday highlighted a bittersweet challenge: the steep increase in the cost of chocolate letters. Prices are up by an average of 25 percent compared to last year, sparking concern among consumers and industry leaders alike.
“Chocolate letter prices are up between 20 percent and 25 percent per kilogram compared to 2023,” said Sebastiaan Schreijen, senior analyst at RaboResearch. “Some brands have seen increases as high as 35 percent to 40 percent.”
The price hikes were confirmed in a sample study by the Dutch Consumers’ Association. “A Jumbo house brand letter is 35 percent more expensive, while Albert Heijn letters have risen by 13 percent,” said spokesperson Gerard Spierenburg. Kruidvat and Plus brands have also seen jumps of 25 percent and 7 percent, respectively. Even premium brands like Tony’s Chocolonely have increased prices.
Behind the rising costs
The surge in chocolate prices is tied to multiple factors, primarily soaring cocoa prices. Dennis Teeken, director of Verkade, the leading chocolate letter producer, explained that cocoa costs have doubled in recent years, peaking at 10,000 dollars per metric ton.
“African cocoa harvests, which account for 70 percent of global supply, have struggled due to poor weather, aging trees, and diseases,” said Teeken. He added that prices for other ingredients, including sugar, dairy, and energy, have also risen sharply, compounding the problem.
Verkade produces 2.5 million chocolate letters annually, with 36 percent cocoa in their milk chocolate and 54 percent in their dark chocolate. Despite the rising costs, the company has committed to maintaining the size and quality of its letters.
Despite the price hikes, sales of chocolate letters remain robust. The Dutch Confectionery Industry Association (VBZ) reported that consumers are adjusting their buying habits rather than cutting back.
“Many wait for discounts or choose house brands or discount retailers,” said VBZ spokesperson Jeroen de Bruin. “Still, people won’t give up their chocolate letters. It’s a cherished tradition.”
The association also noted that luxury chocolate letters, often given as gifts, continue to sell well. “Some consumers are willing to pay upwards of 10 euro for hand-crafted or premium brand letters,” said De Bruin.
More increases expected
Experts predict chocolate prices will climb even higher in 2025. Schreijen from RaboResearch noted that long-term contracts between cocoa suppliers, chocolate makers, and retailers mean the current high cocoa prices will likely affect consumer prices for months to come.
Verkade anticipates a potential 30 percent to 40 percent price increase next year, though Teeken reassured customers that their products would not shrink in size.
