The Margin: A Reese’s Peanut Butter Cup shortage? Hershey won’t meet Halloween candy demand, CEO warns

by | Jul 29, 2022 | Stock Market

Trick-or-treaters may be missing some of their favorite Halloween candy this year, as the maker of Reese’s Peanut Butter Cups, Kit Kats, Hershey’s Kisses, Mounds and Almond Joy has warned that it won’t be able to meet consumer demand this fall. And Hershey says that the shortage is expected to run into the December holidays, as well. Boo, and bah humbug!

“Seasonal consumer engagement is expected to remain high, and we expect high single digit sales growth for both our Halloween and holiday seasons,” said Hershey Co.
CEO Michele Buck in prepared remarks for the company’s second-quarter earnings call this week. “Despite this strong growth, we will not be able to fully meet consumer demand due to capacity constraints.”  Like many manufacturers and distributors, Hershey has been hit by supply chain disruptions related to the pandemic and the war in Ukraine this year, which has made some ingredients scarce, even as inflation has raised the price of dairy products needed to make its signature chocolate.  Adding to those challenges, many of Hershey’s everyday and seasonal products are made on the same manufacturing lines, Buck said, and the company made the difficult decision to prioritize the on-shelf availability of everyday candies (the chocolates and treats enjoyed year-round), which was “critical to enable us to increase advertising and merchandising levels” to drive grow …

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