TUCSON, Ariz. (KGUN) — A local Tucson chocolate company is grappling with dramatically increased costs as cocoa bean prices have more than doubled, forcing them to raise prices just before their busiest sales period.
Monsoon Chocolate, which has operated in Tucson since 2017, is among the smaller chocolate makers feeling the squeeze from a global cocoa shortage. Founder Adam Krantz said the price increases have "fundamentally changed our business."
"There was a moment where say a metric ton of beans was about $2,500 which is a really low price," Krantz said.
But unlike major chocolate brands such as Hershey and Lindt, Monsoon sources from the specialty cocoa market, where they previously paid about $6,000 per metric ton of beans.
"It's not the same as cotton where you can say for the most part cotton grown here is similar to cotton grown there. All cocoa beans are unique, distinctive, they're different grades, they're different quality levels," Krantz said.
The cocoa shortage in West Africa, which produces about 70% of the world's cocoa beans, has driven large chocolate companies into the specialty market, sending prices soaring.
"Now they're buying specialty cocoa because the price is relatable. The bulk buyers for these big companies, they need to source beans so it becomes more competitive," Krantz said.
Adding to the challenges, new tariffs implemented this year have increased costs on everything from beans to packaging materials.
"Everything is more expensive. Everything," Krantz said.
Despite the price pressures, Monsoon is preparing for its busiest season, which runs from Christmas through Valentine's Day when the company generates about half of its annual sales. To manage costs, the company is focusing more on local partnerships to help offset expenses for consumers.
The Halloween season, while significant for chocolate sales industry-wide, is not Monsoon's peak period, though the timing of increased costs still presents challenges for the local business.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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Alex Dowd is a multimedia journalist at KGUN 9, where her work combines her two favorite hobbies: talking to new people and learning about the community around her. Her goal is to eventually meet every single person in Tucson. Share your story ideas with Alex via email, alex.dowd@kgun9.com, or connecting on Instagram or X.
