Why was Jersey Milk cut from Canada and could other chocolate makers follow?

Yahoo

2 days ago

By Shayan Alvi
Jersey Milk chocolate, familiar to generations of Canadians as part of Halloween treat bags and campfire s'mores, will join the Canadian brands that have disappeared off shelves. Mondelez Canada confirmed on July 7 that it has stopped making the 100-year-old Neilson Jersey Milk chocolate bar. The Financial Post breaks down what led to the candy's demise and what else it might mean for Canadian chocolate lovers.
The Jersey Milk bar was launched in 1924 by Toronto dairy firm William Neilson Ltd. and was marketed as a creamier and home grown alternative to European chocolate bars.
One of the oldest chocolate bars native to Canada, the candy had a 100-year-old legacy that spanned generations.
In 1996, Cadbury, owned by Kraft Foods Inc., bought out Neilson's chocolate manufacturing line, including the Jersey Milk bar. In 2012, Kraft divided its grocery and confectionery product lines into two different entities: Kraft Foods Group owned and manufactured all grocery products while a new company, Mondelez International Inc., was responsible for handling confectionery brands such as Cadbury, Trident and Oreo.
As of 2012, the Jersey Milk bar was produced by Mondelez Canada under the Neilson banner.
Mondelez said a change in consumer preferences is the primary reason for discontinuing the bar.
'The company's decision to cut the product came after a portfolio review showed consumers have shifted to buying other pure milk chocolate bars like Cadbury Dairy Milk,' spokesperson Pierina De Carolis told The Canadian Press.
Retail analyst Bruce Winder said cost efficiency and convenience likely played a role in brand consolidation with a shift into Cadbury products, which have global recognition. 'This has been a trend we've seen, that large consumer packaged goods companies might get rid of a brand (such as Jersey Milk) and just consolidate the sales of the Cadbury,' he said.
Rising cocoa prices have been plaguing chocolatemakers. Cocoa prices have surged due to supply shortages driven by weather crises, crop diseases and chronic underinvestment in cocoa farms in West Africa, which supplies up to 80 per cent of global cocoa, JPMorgan Chase & Co. said in a December report.
Winder said rising cocoa prices have put manufacturers in a tough spot. Higher cocoa prices have 'made manufacturers and marketers make some tough choices,' and by simplifying inventory and consolidating brands 'they can get the savings to help offset some of those local price increases,' he said.
Cocoa prices reached historic highs in 2024, peaking at more than US$12,000 per ton in December 2024, up from US$2,000 to US $4,000 per ton historically, according to data analysis firm Trading Economics.
'The higher price of cocoa has definitely made manufacturers revisit their assortments and their pricing,' Winder said.
There is a global shift toward consumers seeking healthier food options. A 2025 Euromonitor survey found that 54 per cent of global consumers now seek out healthier products, such as those with reduced sugar, sodium or saturated fat. That shift has benefited snacks perceived as 'better for you.' This includes dark chocolate, which contains less sugar and more antioxidants, and which 25 per cent of consumers in a 2022 Cargill Inc. ChocoLogic survey sought out because they believe it is healthier.
Protein-fortified snacks and what is termed functional snacks, with added substances considered healthy, such as fibre or supplements, are also growing segments, according to the Euromonitor study. Jersey Milk, with its traditional full-fat, full-sugar recipe, does not fit this trend.
The chocolate aisle has also become more adventurous. Consumers increasingly seek novelty, and limited-edition releases. A market analysis by research firm Technavio last year forecast US$9.3 billion in global growth for seasonal chocolates by 2028, fuelled by consumer demand for limited-edition products. Brands such as Lindt, Hershey, and Cadbury have all expanded their offerings to include flavour mashups and seasonal variations, leaving some legacy bars looking outdated.
With consistent price hikes and inflation in recent years, even loyal chocolate buyers are scaling back. Faced with rising grocery bills, many consumers are trading down and opting for private-label chocolate or smaller sizes, according to EY's 15th Future Consumer Index. While premium brands can justify higher prices with unusual flavours or ethical sourcing, value-conscious shoppers are more likely to turn to private label products, the EY report says.
' Customers may have an affinity to the brand so it's hard to let go, but at the end of the day, every brand has to stand on its own, has to make enough sales and profit to exist,' said Winder.
Jersey Milk is just one casualty in a broader industry malaise. Major producers such as The Hershey Co. have warned of shrinking margins as cocoa prices hit record highs. Hershey reported first quarter adjusted operating profit decreased 29.4 per cent versus the first quarter of 2024. The company attributed this to rising cocoa prices.
Swiss-Belgian cocoa processor Barry Callebaut AG also reported a 22.6 per cent drop in sales volume of in the third quarter, as clients scaled back orders. The company attributed this to the soaring cocoa prices.
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Across the board, chocolate makers are raising prices, tweaking recipes, and reducing pack sizes to cope. Even premium brands with strong customer loyalty are feeling the squeeze.
The decision to retire slower-selling bars such as Jersey Milk reflects a larger trend: in a high-cost, low-margin environment, legacy products that no longer justify shelf space are increasingly vulnerable.