The company informed its retailers of the price hike last week.

Hershey (HSY) is raising the prices of its candy due to sustained higher cocoa prices, according to statements from the company to Reuters and Bloomberg.

Hershey, which makes Kisses chocolates and Reese's Peanut Butter Cups, didn't specify the products that will see their prices go up. The company informed its retailer about the move last week.

Shares of the company rose 2.8% on Tuesday.

"This change is not related to tariffs or trade policies," Andrew Archambault, president of U.S. confectionery at Hershey, said in a statement. "It reflects the reality of rising ingredient costs, including the unprecedented cost of cocoa."

The increase reflects a higher list price as well as adjustments to the weight and number of candies in a bag, a practice known as shrinkflation, according to the Bloomberg report. The company previously announced a price increase a year ago.

Cocoa prices have soared over the past two years due to poor weather and crop disease in Ivory Coast and Ghana, which supply over 60% of the world's cocoa. Futures hit record highs in December, disrupting the chocolate industry. While prices have eased since, they remain well above historical levels. 

On Stocktwits, the retail sentiment for the Hershey's shares held in the 'bearish' zone, unchanged from a week ago. HSY stock is up over 6% year-to-date.

Last quarter, the company reported a smaller-than-expected decline in sales and also exceeded profit expectations, thanks to steady demand for its salty snacks business in North America. The company also warned of $15 million to $20 million higher costs due to tariffs in the ongoing second quarter.

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