As the summer draws to a close, manufacturers are preparing their stocks of Sinterklaas treats like chocolate letters and pepernoten cookies. However, consumers should brace themselves for

significantly higher prices this year, as cocoa and sugar prices experience substantial hikes, according to a report by NOS.

Chocolate manufacturer Droste informed the broadcaster that chocolate letters will see an increase of around 10 to 15 percent in cost this year. When accounting for last year's price hikes, consumers are facing up to a 30 percent rise compared to the period before Russia's invasion of Ukraine, which triggered extensive inflation.

Bernard Brummelaar, Commercial Director of Droste, explained, "It's simply unavoidable. We are paying 50 percent more for cocoa, our primary raw material, and 25 percent more for sugar." Additionally, the company is grappling with escalated expenses for energy, packaging, transportation, and labor, in line with the general trend. Brummelaar noted, "Energy costs are four times higher than pre-pandemic levels last year."

Oscar de Lange, Director-Owner of pepernoten (spiced cookies) producer Van Delft Biscuits, echoed a similar narrative. "I anticipate that pepernoten will see a consumer price increase of about 20 percent this year," said the director of the company that holds three-quarters of the Dutch pepernoten market.

This would mean that a one-kilogram bag of pepernoten with chocolate, for instance, would approach the 5 euro mark. However, De Lange isn't overly concerned about the impact on sales figures. He pointed out that Easter egg sales remained steady despite the cost of a kilogram bag surpassing 5 euros for the first time this year. "Consumers won't cut back on their purchases, even if a bag costs 5.49 euros. After all, Easter and Sinterklaas only come once a year, right? There's a lot of sentiment and emotion attached. People associate pepernoten with coziness and nostalgia, evoking warm feelings. People simply want such a bag in their homes."

Cocoa prices on the New York Stock Exchange have soared to their highest level in over a decade. Thijs Geijer, Food Sector Economist at ING, explained to NOS, "They're approaching the previous peak seen in 2011. The unfavorable weather and crop forecasts in major production regions are significant contributing factors." Photo by Simon A. Eugster, Wikimedia commons.