Hershey to Increase Candy, Chocolate Prices
Come 2020, the candy maker will raise the cost of chocolate bars and wrapped candies by 9%.
Jul 29, 2019
DERRY TOWNSHIP, Penn.—Hershey Co. plans to raise the cost for its wrapped candies and chocolate bars next year, the Wall Street Journal reports. CEO Michele Buck said prices will increase around 9% next year. In 2019, Hershey increased the cost of bagged candies, mints and gum by 2.5%.
Other candy companies have increased prices as well, including Mars Inc. and Mondelez International Inc. Food makers have had to enact higher prices to boost their financial bottom line as they juggle startup competition, rising manufacturing costs and changing consumer tastes.
While higher prices can make consumers forgo purchases or trade down to a less expensive brand, Buck expressed optimism about Hershey’s price increases. “We expect this will be very consistent with what we’ve seen in any year in the past when we’ve taken these kinds of actions,” she said.
Buck also said that retailers have been positive about an increase, since the company routinely reinvests profits into its brands. Overall, Hershey predicted revenue would accelerate 2% in 2019. Meanwhile, the company last month said it had no interest in developing CBD products.
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