SAN DIEGO — A San Diego chocolatier is grappling with dramatically increased operating costs as cocoa bean prices have nearly doubled, forcing the business to raise prices and cut back on inventory.
Sandra Mejia, who co-owns Nibble Chocolate, said her business is now paying $10,000 to $15,000 more per month in bills compared to last year, with cocoa bean costs being a major factor.
"We make our chocolate directly from the cocoa beans, we roast in-house, we know the beans, and then we're grinding our beans right here and temper them," Mejia said.
The price increase has been substantial. Mejia said cocoa beans that previously cost around $10 per kilogram now range from $17 to $20 per kilogram, though prices have recently dipped to around $8 per ton this month.
"It used to cost maybe between $10 a kilo ... and now it costs $18 a kilo ... to $17 a kilo ... and sometimes $20 a kilo," Mejia said.
The shop typically uses about 60 kilograms of cocoa beans to produce 400 regular-sized chocolate bars. Mejia attributes the price increases to supply shortages caused by environmental and climate change issues, as well as increased market competition.
To cope with the financial strain, the business has implemented several changes.
"We had no choice ... we had to increase our prices twice, we had to start getting creative, so we had to change our POS system to a system that charges our customers for the merchant fees," Mejia said.
The shop has also reduced its inventory significantly.
"We had to decrease our stock -- 100 so we're making everything to order we purchase a little bit … we make it for orders that have been paid," Mejia said.
The business has been unable to hire additional staff or provide employee raises. To diversify revenue streams, they're incorporating other products like coffee drinks that are less expensive to produce.
For budget-conscious chocolate lovers, Mejia suggests shopping around for options.
"If one cacao is less expensive than the other to check out all the options because there are other things that are not less quality but still lower pricing or even in the packaging like if it looks more homemade packaging it's got a lower pricing," she said.
Despite the recent dip in cocoa prices, Mejia said the business still faces a significant financial deficit that will take time to recover from.
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