Rising cocoa prices force Kitchener bakery to make bittersweet decision

A bakery in Kitchener, Ont. has had to make some big changes due to cocoa prices. CTV’s Alexandra Holyk reports.

The high price of cocoa has cost a bakery in Kitchener, Ont. a key part of its business.

For years, Aura-La Pastries + Provisions on Frederick Street made bean-to-bar chocolate in-house.

“We wanted to see if we had the capacity and the knowledge and the expertise to make chocolate,” said owner Aura Hertzog. “And so we slowly scaled up.”

Hertzog invested in chocolate making machinery, including a cocoa bean cracker, a grinder or “melanger,” as well as a tempering machine. However, as time went on, that part of their business became harder to maintain.

In 2024, Aura-La stopped producing chocolate – a decision Hertzog said was difficult to make.

“It was really hard,” she said. “I think it’s really hard to let go of something that you’re passionate about, and also that creates a uniqueness for your business.”

Hertzog said the shift in her business began around the COVID-19 pandemic.

“Chocolate during COVID was definitely not what kept our business in business,” she said. “What kept our business in business was making delicious baked goods.”

Hertzog moved away from niche products and brought in goods made by other local makers.

“Then that shift happened when we were like, ‘OK, we still want to make chocolate,’” she said. “What we started seeing was the cost of cocoa beans rising.”

According to University of Guelph food economist Mike von Massow, the price of cocoa has tripled over the last five years.

Von Massow said climate change and disease have plagued cocoa crop yields – factors that are unlikely to change in the short-term.

“Unless there are catastrophic yield failures, I don’t think we’ll continue to see prices go up as substantially as they have,” said von Massow. “But I’m not optimistic that they’ll come down substantially either.”

At Aura-La, the high cost of cocoa, as well as sugar, takes a big bite out of the bakery’s bottom line.

“At the moment, the way that this business is operating, it makes more sense for us not to do chocolate,” said Hertzog.

The bakery still offers chocolate products along with fruit- and nut-based treats. But Hertzog said she’s not completely closing the door on the cocoa confections.

“Would I make chocolate again?” asked Hertzog. “I still have a tiny melanger, so it’s not out of the question.”