FRANKFORT, Ky. (LEX 18) — While Hershey plans to raise prices, a historic Kentucky candy company is taking a more measured approach to inflation.
Chocolate treats have been rolling out at Rebecca Ruth Candies in Frankfort for more than 100 years.
"Rebecca Ruth Candies was founded in 1919 by two ladies, Rebecca and Ruth. Ruth was my grandmother," said Charles Booe, the current owner.
Booe says cocoa costs are just one factor they consider when it comes to pricing. Cocoa prices hit a high in December due to weather conditions in West Africa but have dipped slightly since then.
"Of course, chocolate as the primary ingredient is not grown in the United States. It's grown near the equator. So the cost of cocoa futures is actually down about 25% since the beginning of the year," Booe said.
But this week, the Hershey Company announced it's raising prices in the low double-digits, accounting for both rising cocoa costs and inflation. Booe says any price hikes they implement this year won't match Hershey's.
"Each year, we typically raise the cost of our chocolates to reflect inflation. So this year, we're looking at somewhere a little under 3%," Booe said. "We'll probably have to raise them a little bit, to make sure we can keep paying our employees properly and not skimp on the quality of our ingredients."
Booe says that's what it takes to make those iconic bourbon balls. "We've been in business 106 years this year, and I think we'll make it past this year," Booe said.
