Hershey Announces Candy Shortage Just Before Holiday Season Starts
Whether we like it or not the holiday season is coming up.
Part of the holidays is having candy around. Whether it is candy for Trick or Treating or just little bowls of sweet treats around the house for guests to snack on at Thanksgiving or Christmas dinner it is something that we all love to have during the holiday season.
However, this year we may not have as much candy available to us as in previous years.
Hershey CEO Michele Buck told investors that the company will not be able to meet the demand for candy heading into the Halloween and holiday seasons.
“Seasonal consumer engagement is expected to remain high, and we expect high single-digit sales growth for both our Halloween and holiday seasons,” Buck said. “Despite this strong growth, we will not be able to fully meet consumer demand due to capacity constraints.”
The Hershey Company is currently taking steps to address the candy shortage before the holiday rush begins.
“As trends began to improve, and the labor market became increasingly difficult, we struggled to efficiently ramp up production back to our historical levels,” Buck said. “We have taken a lot of action to address these issues, including deploying manufacturing expertise and lean teams to the plant, and streamlining the portfolio to reduce complexity and increase output. We are seeing improvement every week, and this will remain a key focus area for our supply chain teams until our production and service levels are optimized.”
The main reason for this little inconvenience is inflation and the impact that it has had on the candy business.
While higher prices are something that we are all having to struggle with right now. Buck did say that Hershey is expecting 20% of their products to continue to retail at $2 or less.