Hershey says it won't be able to meet Halloween demand this year
The pastry chef adding to Japan's 400+ flavors of Kit KatReplayMore Videos ... (16 Videos) The pastry chef adding to Japan's 400+ flavors of Kit KatRussia's war in Ukraine threatens one of England's most famous dishesSee rebranded McDonald's restaurants unveiled in RussiaHow AriZona Beverages has kept iced tea prices at 99 cents for 30 yearsNew Taco Bell drive-thru restaurant serves tacos using mini elevatorsThe fastest growing trend in adult beverages will surprise youSee Russian merchant ship's journey across Mediterranean with stolen grain Mother describes 'anxiety provoking' search for baby formulaActor superglues his hand to Starbucks counter in protestAmericans are tipping less in the wake of tipping fatigueForget oil. Here's how Russia's war in Ukraine is jacking up food prices.What's that long skinny thing a restaurant just tried sending to space?Pusha T isn't 'lovin' it' anymore. Hear his new song for Arby'sWendy's CEO: Expect menu price increases of 5% this yearWatch CNN's 1990 coverage of McDonald's first opening in RussiaMcDonald's suspends business in Russia. Here's why it's a big dealNew York (CNN Business)Bad news for Halloween enthusiasts. This year, you might be out of luck in the candy aisle.
"We will not be able to fully meet consumer demand," for the October holiday, warned Hershey CEO Michele Buck in prepared remarks about the company's second-quarter results Thursday. The problem? Consumers are demanding more regular and Halloween-themed candy than Hershey can make, at least right now. Many consumer goods manufacturers have been struggling to meet surging demand for their products during the pandemic, especially with the ongoing supply chain issues. That's meant that they've had to reduce production of certain less popular items or, as in the case of the late, great Choco Taco, cut them altogether. Hershey is in the same boat. Read MoreHershey doesn't expect to meet demand for Halloween candy.Demand for sweets surged during the pandemic and has remained high. Meanwhile interest in Halloween has only gotten stronger. That's bittersweet news for Hershey, which has seen its sales spike — the company reported double-digit sales growth in the quarter compared to last year -— but it has also had to make some production sacrifices.The chocolate maker uses the same manufacturing lines for its regular and seasonal products. That means it can't amp up production of both regular sweets and Halloween or holiday items. Instead, it has to do one or the other. "We had a strategy of prioritizing everyday on-shelf availability," Buck said during an analyst call discussing the company's second-quarter results. "That was a choice that we needed to make," she said. "It was a tough decision." That likely means ceding ground to competitors such as Mars Wrigley, which makes M&Ms, Snickers, Skittles and other candies, and Brach's, during the busy Halloween season. Hershey is adding more manufacturing lines and hoping that it will be able to meet demand in the next couple of years. But it has other issues. In addition to capacity constraints, the company is still struggling with disruptions along its supply chain, including higher dairy prices and scarce ingredients. In order to get the ingredients it needs, Hershey has to source them from other suppliers, which is costly.These issues are largely related to the war in Ukraine, Buck said. Click Here To Get Funded!