Makers of sweets and chocolates are aiming to shield customers from their higher costs.
There's a multitude of factors behind rising prices, from bad weather, to the war in Ukraine, according to Diana Gomez, an analyst at market research group Bloomberg Intelligence.
The El Niño is tipped to start around August, and would be the first since 2019. It comes after India, the world's second-largest sugar cane producer, has already seen lower yields this year due to excess rain.Some 80% of the world's sugar supply comes from sugar cane, with sugar beet providing the remainder. Ms Gomez says that beet production in Europe has also been affected by the weather.
Russia is a major exporter of fertiliser, and the war in Ukraine has impacted supplies, adding costs to farmers around the world, and eventually therefore to consumers. Combine this with global wage inflation and price increases in other areas of the supply chain, and it means confectionery companies are having to make some difficult choices.At the premium end of the market, Swiss firm Goldkenn specialises in making chocolates for the duty free, airport shopping market.
Even so, Ms Gay says that there's a limit to how much people will pay, and that savings have to be made in other areas, "Since about March last year, our raw material costs have gone up 40%," says Mr Gow. "We've passed a small element of that to the consumer, but as a company we've taken the long-term view and are financing the vast majority of it."
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