EU Deforestation Law Risks Pricier Chocolate Bars

Big chocolate companies are welcoming new European Union rules that protect forests, but which risk further hitting consumer wallets.

The EU is introducing laws that ensure that commodities including cocoa, coffee and palm oil aren’t grown on deforested land — and is also putting in measures to tackle issues like child labor in supply chains. Firms like Lindt & Spruengli AG, Ferrero SpA and Unilever Plc say they back the move because it looks after the environment and those who grow the crops.

But for shoppers — who increasingly want to know where their food comes from and whether it was ethically produced — it could come at a cost. No. 2 cocoa grower Ghana has warned that buyers should be ready to pay more because of the investment needed to set up systems tracking beans back to farms. That may potentially raise prices of everyday items like chocolate bars and shower gel for European consumers struggling with a cost-of-living crisis.

“There is clearly an investment that needs to be made,” said Francesco Tramontin, vice president of EU institutional relations at Kinder maker Ferrero. He said the company already has full traceability of farms it buys cocoa from.

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