Tony’s Chocolonely reduced retail prices in a bid to drive its mission impact

Ethically founded chocolate brand Tony’s Chocolonely has moved to reduce its retail price despite inflationary pressures, in a bid to further expand its presence, reports Neill Barston.

The company has confirmed that from 1 October, it will be investing more into pricing to customers that will mean its retail price of 180g bars drops from £3.49 to £2.99, amid major pressure on household budgets across Europe and around the world.

As the company noted, the recent impact on market dynamics caused by the war in Ukraine and steep rise in inflation has seen big cost increases for food brands, and Tony’s Chocolonely expects to see the cost of its goods increase by 11% year on year.

Furthermore, the business – which this month was among speakers at our World Confectionery Conference, is continuing with an ongoing mission to eradicate child labour from supply chains, believes that selling chocolate at a price that drives greater benefit to farmers is of critical importance.

As the firm asserted, only by becoming a credible global chocolate brand, whilst adhering to its 5 Sourcing Principles based around direct support to farmers and their communities, will it prove to the biggest chocolate brands that it’s possible to be successful in the industry without failing to sufficiently pay cocoa farmers at the start of the supply chain.

In addition, the company added that it believed that its latest pricing strategy will help draw further attention to its mission and act as a point of difference from companies within the sector that are in some instances operating to what it believes are less responsible standards. As the company has acknowledged, it has still found cases of child labour within its supply chain, which it continuing to fight against through working closely with co-operative groups in core markets of Ghana and Ivory Coast, which make up two thirds of the market.

In the company’s view, a reduced RRP will ultimately encourage more shoppers to trial Tony’s and increase its reach, accelerating the impact it is able to make, and ultimately drive progress towards a living income for key farming communities.

Notably, the pricing move has been backed by major retail partners who have supported with more distribution, helping to offset some of the gross margin reduction in Tony’s P&L in absolute terms.

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