Nestlé chocolate products set for more price hikes as cocoa costs surge

Chocolate makers are expected to pass these higher costs on to shoppers and retailers in the fourth quarter — known as the all-important 'holiday quarter' — when most of the industry's sales are made around Halloween and Christmas

Chocolate brands owned by Nestle include KitKat, Smarties, Aero, and Milkybar. 

Nestlé may flag more price hikes on its chocolate products when the world's biggest food maker reports first-half earnings on Thursday, making KitKat bars and Smarties more expensive by Christmas.

Over the past three years, Nestlé and other consumer goods companies have raised prices across their brands to cover sky-high input costs amid supply chain issues after the pandemic. In recent quarters, the costs of most commodities have started to decline again but cocoa has nearly doubled in price this year amid shrinking supplies.