FoodClips
Source: Bloomberg
Cocoa Peaking Means Kraft Wins Cadbury on Margin Gain (Update1)
Feb. 8 (Bloomberg) -- The longest cocoa rally in three decades is ending as growers boost output, widening profit margins for chocolate makers who’ve already shrunk the size of candy bars and substituted cheaper ingredients to save money.
European stockpiles are five times the 60-month average after bean prices rose 23 percent last year. Top producers Ivory Coast, Ghana and Indonesia may grow 6.6 percent more in the 12 months that started in October. Barry Callebaut AG, the biggest bulk chocolate maker, said the global economic slowdown means it will take until 2012 for unit sales to grow 2 percent or more, the average until last year’s 2.6 percent drop.
Read more [http://www.bloomberg.com/apps/news?pid=20601205&sid=aDAXXwRv0dDY]