March 28, 2024

Chart of the Week – Sweet Like Chocolate

By Nathan Sweeney

Welcome to the Chart of the Week.

The Chart of the Week highlights the price of cocoa futures.  For the first time, the price of cocoa surged past $10,000 a tonne. Cocoa futures traded as high as $10,080 in New York, more than double their price only two months ago, as traders warned a global shortage of cocoa beans would herald higher price tags for chocolate bars.

Poor weather and disease have slashed crop yields in the Ivory Coast and Ghana, which together produce more than two-thirds of the world’s beans.

 

Clients have been asking what this means for Easter eggs?

Some popular Easter eggs cost at least 50% more than a year ago, while others have shrunk in size, a new study shows. These include eggs from brands such as Maltesers, Lindt and Cadbury.

In the UK, the overall price of chocolate has increased by 12.6% in a year – significantly more than the 5.6% rise seen in supermarket food and drink. In the steepest example of Easter egg inflation, a 286g Maltesers Truffles Luxury Easter Egg increased from £8 to £13 at Waitrose, compared with the same time a year ago – an increase of 62.5%. At Asda, a 50g Lindt Gold Bunny Milk Chocolate five-pack increased from an average £2 to £3.11 – up 55.6%. As well as price increases, there are also examples of “shrinkflation,” with a Mars milk chocolate large Easter egg diminishing from 252g last year to 201g this February at Morrisons and Tesco.

Investing in a multi-asset portfolio exposes you to a host of exciting investment themes while ensuring you don’t have all your eggs in one basket!

 

Takeaway: Perhaps keep some Easter eggs in reserve for 2025?

Did you know: Florida Governor Ron DeSantis (R) just signed into law HB 3, a bill that will give parents of teens under 16 more control over their kids’ access to social media and require age verification for many websites? Click here.

Marlborough Podcast: This week, we discuss Japan’s rate hike, central bank moves & inflation trends. Click here.

 

 


 

Author: Nathan Sweeney, CIO Multi-Asset, Marlborough Group

Source: Marlborough Multi-Asset Investment Team, Man Group, FT, Independent, Bloomberg and International Cocoa Organisation, The Verge

Important Information: This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Clever to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. You should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine – together with your own professional advisers if appropriate – if any investment mentioned herein is believed to be suitable. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice.

All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. Issued by Clever Adviser Technology Ltd (Clever), a company registered in England and Wales (company number: 2910523) with registered office at Watergate House, 85 Watergate Street, Chester, Cheshire CH1 2LF.

Meet the Author

Nathan Sweeney

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