Chocolate Economics

Interesting article here on Chocolates and Economics

Role of Substitute

But the shift would make chocolate cheaper to produce, since cocoa butter can be four or more times the cost of Shea, palm oil and other vegetable fats.

Buyer's Preference

“To me, it’s a delicacy. I don’t eat it every day — I don’t want the calories. But when I do enjoy it, do want real chocolate. I don’t want any change in flavor by cheapening the product,” said one opponent, Avanele Bush, 83, a Malibu, Calif., resident who counts chocolates made by See’s Candies Inc. and Ghirardelli Chocolate Co. among her favorites.

Seller's Incentives

“If you’re able to replace cocoa butter with another fat, even at the 5 percent level, you’re saving lots and lots of money, especially if you are a major manufacturer of chocolate bars,” said Bernard Pacyniak, editor in chief of Candy Industry magazine.