SIOUX FALLS, S.D. (KELO) – A local chocolate shop in Deadwood is feeling the effects of the rising cost of chocolate, but is determined to make it through the difficult time for its chocolate-loving customers.
Global shortages in key cocoa-growing regions and general inflation have caused chocolate prices to increase since early 2024.
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“Our cost for the chocolate has more than doubled over the last year,” said Carolie Tautkus, co-owner of Chubby Chipmunk’s in Deadwood.
Prices are only expected to rise with the Trump administration’s recent tariffs.
“We anticipate it’s gonna go up even more,” added Seth Tautkus, the chocolatier behind Chubby Chipmunks. “We’ve got the tariff stuff now, that’s probably another 20% that we’re gonna expect.”
Chubby Chupmunk’s Hand-Dipped Chocolates established its small store in Deadwood 21 years ago. Seth has been making chocolates with the business since 2013. He and Carolie bought the chocolate shop three years ago.
Seth said they just purchased $33,000 worth of chocolate, more than double what it cost over a year ago, which should get them through the summer tourist season in the Black Hills.
Despite the increase to goods, Seth said they try to not pass that cost on to customers.
“We’ve really been eating a lot of it,” he lamented. “But we are expecting to raise prices incrementally as we go. Where it’s more of a slow gradual increase, not shocking to everybody hopefully.”
Chubby Chipmunk imports its cacao-based chocolate from Europe and Peru, Seth said.
Although Peru hasn’t seen the climate impacts that Africa has, its exports have still seen price increases due to the global cocoa shortage, a Peruvian agriculture outlet reports.
Carolie also attributes the price increase over the last few years to cocoa farms paying their workers ethical wages.
“The company we work with does well with paying their farmers, but we’ve heard that there’s an issue there where they’re working on paying farmers better,” she noted.
With Trump’s recent round of tariffs, including 20% on imports from the European Union and a 10% baseline tariff in Peru, the Tautkus’ expect higher prices for their cacao.
Seth says their prices are comparable to store box chocolate, but their quality is higher.
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“Folks that don’t use actual cacao-based chocolate, where they’re using like compound chocolate, which I would say is step down, it’s more like your typical box store chocolate, mass produced, not single source or naturally sourced product with more fillers, we’re in the same price margin as them, so very competitive,” he described.
Carolie said sales have been fairly steady the last few months, but have noticed the rising cost of living has had some impact on the business. Although, the Tautkus’ are both optimistic for the summer season and years ahead.
“People always want their chocolate though,” Seth said. “They say that coffee, chocolate and alcohol will always be there. As long as you have those comfort items, you know, those are almost recession proof. We got through 2008, we got through 2020, we’re gonna get through this.”
