Consumers who have the impression that the price of food continues to rise could be spared this summer when the time comes to eat… ice cream. Chocolats Favoris has decided to freeze the prices on its cones coated with chocolate sauce, despite a surge in cocoa prices.
Ice cream lovers will therefore pay the same price for their cone – regardless of the size – as last summer, a first for the company which normally adjusts its prices each spring in preparation for the summer season.
“Normally, when we arrive in April-May, we make a price adjustment to take into account the increase in the minimum wage, the increase in the price of milk, the increase in the price of chocolate,” explained the president of Chocolats Favoris, Dominique Brown, during a telephone interview.
This summer, however, the price needle for what Mr. Brown describes as his best sellers won’t move. Fans of chocolate-dipped ice cream who treat themselves to a cone during their vacation will pay between $5.69 and $8.89, depending on the size chosen according to their appetite. The “baby” cone will be sold at $1.99 for children aged 12 and under, instead of $4.79.
PHOTO ALAIN ROBERGE, THE PRESS
Fans of chocolate-dipped ice cream who treat themselves to a cone during their vacation will pay between $5.69 and $8.89, depending on the size chosen according to their appetite.
The big boss also ensures that the formats will be the same size as last year. No “reduflation” here. “The number of turns to serve ice cream has not changed,” he assures, a smile in his voice. This is because, every summer, many customers comment to him about the size of the cones which are decreasing, he says. In fact, nothing has changed.
We are betting, with these initiatives, that we will allow more people to come to the store. We will make less money on the cone, but we hope that we will sell more and that we will retain our customers who have economic choices to make at the moment.
Dominique Brown, president of Chocolats Favoris
He recognizes that this decision was notably influenced by the change in customer behavior, more sensitive than ever to promotions. “After the pandemic, the number of store visits fluctuated enormously, sometimes up, sometimes down. With the rise in interest rates, there has been an impact too. »
Brown notes that consumers are still eating ice cream or chocolate, but are choosing cheaper options.
The price of cocoa
However, “after years of stability at around US$2,500 per metric ton, the price rose to US$4,200 at the end of 2023, then to US$11,000 per ton in mid-April. And the fluctuations continue,” according to the company.
In such a context, how can the Quebec chocolate factory be profitable if it freezes the price of its cones? “We make our cocoa purchases well in advance,” explains Dominique Brown. Months and months in advance, we will commit to purchasing a certain quantity. We have different mechanisms like that which will allow us to protect ourselves in the short term from impacts [de la fluctuation du prix] cocoa. »
We do something like pre-booking. We play with the market. Sometimes we are happy because we made good bets. Other times the price goes down. But over the last few months, it has only gone up, so it has paid off for us to make these choices.
Dominique Brown, president of Chocolats Favoris
Canadian expansion
Furthermore, Chocolats Favoris continues to open branches and is targeting a hundred chocolate shops by 2030. “We are restarting the expansion plan planned before the pandemic. »
Present in Quebec, where the company has 52 stores, in Ontario and British Columbia, the chocolate factory will soon have two new addresses in Vancouver.
“It was always the plan to get out of Quebec, to take this brand further. I would like to point out, he insists, however, that we continue to be called Chocolats Favoris. »
Favoris Chocolates in brief
- Year of foundation: 1979
- President: Dominique Brown
- Head office: Quebec
- Total number of employees: more than 1400
- Number of branches: 58 (Quebec, Ontario, British Columbia)