Alkis H. Hadjikyriakos Public Ltd, which makes the Frou Frou brand biscuits has announced increases in the prices of its products containing chocolate by 20 to 30 percent.
The higher prices that will come into effect on April 1 are the direct result of the rising cost of cocoa which has increased by a staggering 153.55 per cent in the last year.
In a letter to the Cyprus Stock Exchage, in which the company is listed, the Managing Director of the company, Alkis Hadjikyrakos said the company was facing a significant rise in global raw material costs, which could negatively impact chocolate sales this year.
The galloping global increase in the price of cocoa and chocolate forces us to adjust our prices, Hadjikyriacos wrote in the letter and warned that this could affect the company’s revenue. The higher prices “could negatively affect the consumption of all chocolate products in the market,” he wrote.
The company will not be passing the total cost increase to consumers for now. We are absorbing a significant percentage of the overall increase in the cost of raw materials, Hadjikyriacos said. The company would reassess the situation in August, in accordance to the movement of cocoa prices on the international market.
The price adjustments will not affect all the companys products. The prices of products not containing containing cocoa or chocolate, such as Frou-Frou biscuits, Golden Choice cereals, Bakandys bakery products, Handys snacks, and Mon Ami desserts will not be affected in 2024.
Prices of the Groups imported chocolate products will also rise reflecting the higher prices charged by suppliers. Hadjikyriacos assured that when international cocoa and chocolate prices fall, the company would adjust prices accordingly.
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