Why do sudden price spikes occur?
The price of flavours and other food ingredients are dependent on the price of the raw ingredients that are used to make them. When the price of a particular raw ingredient increases suddenly, Embassy (along with everyone else) is forced to increase the price of any product that uses the ingredient. This is a concern especially in volatile markets such as the vanilla market. The majority of the world’s vanilla is produced in very few places: the Bourbon Islands, Mexico, Madagascar, Indonesia and Tahiti. Because the vanilla production in these countries is inconsistent in supply, quality and cost, the market price of vanilla tends to fluctuate far more than the price of other food products. Embassy cannot control price fluctuations of this type, and must adjust the prices of its goods accordingly. Rest assured however, that when the price of a raw ingredient swings downwards, Embassy is quick to lower its prices to reflect that change.
