An increase in everyday consumption of candy, while simultaneously producing seasonal candy, prompted the company to ramp up production – just not variety, Buck explained.
She said that everyday and seasonal products are made on the same line and the company has to balance production to improve everyday shelf availability alongside seasonal products.
‘We are seeking improvement every week, and this will remain a key focus area for our supply chain teams until our production and service levels are optimized,’ Buck said.
The company’s net sales increased over 19% to $2.37 billion in the second quarter that ended on July 3. The company experienced double digit sales growth, Buck said.
Despite the potential scarce Halloween festive supply, the company expects to ‘remain favorable to historical levels, as inflation and fewer government benefits are expected to weaken consumers’ buying power,’ according to the company.
‘Profit from increased sales growth is expected to more than offset higher supply chain costs.’
The Hershey company stock has doubled in the past five years. The beloved American chocolate bar has been circulating since the 1900s
The Hershey Company stock has nearly doubled in the past five years. As of Friday afternoon, the stock was selling at the cost of $229.84 per share. The company also announced the increase of dividends to $1.036 on Thursday.
‘Historically, Hershey’s sales growth has been driven by higher prices and not necessarily volume … The company is entering this period from a position of strength with that expertise,” CFRA Research analyst Arun Sundaram said.
The Hershey Company began in 1894 and sold its first candy car in 1900. The company has chocolate factories all over the US and out of the country, including in Brazil, Canada, India, Japan, Korea, Malaysia, Mexico, Philippines, and Dubai.
Last year, Thrillist.Com ranked Hershey’s Bar as the tenth out of 50 most desired American classic candy.
Coming in 9th place was Reese’s Pieces following Nestle Crunch, Mr. Goodbar, 100 Grand, Butterfinger, KitKat, Snickers, and Twix. Reese’s Peanut Butter Cups were ranked number one.
The Hershey Company has grown to be a world wide phenomenon since the company opened in 1894
While Hershey’s is improving weekly on their production amid supply chain setbacks, other company’s might also be preparing for the upcoming season.
Last year, the global supply chain crisis haunted Halloween as stores left shelves bare amid the spooky season.
Costumes, decorations and candy were held up in ports due to a shortage of truck drivers, warehouse space and bottlenecks in the network.
PICTURED: Store in 2021 as Halloween was under threat from supply chain chaos. ‘Distraught’ shoppers battled empty shelves and canceled orders weeks ahead of the festivities
PICTURED: Store in 2021. Costumes, decorations and candy remained held up in ports due to a shortage of truck drivers, warehouse space and bottlenecks in the network
Customers were furious after having to forego Halloween in 2020 due to the Covid pandemic, only to be faced with the prospect of another muted celebration in 2021 due to supply issues.
Home Depot President Ted Decker said in August 2021 that stores were sold out of pre-release Halloween products almost immediately.
An employee at Spirit Halloween in Layton, Utah, said last year: ‘[Our selection was] really good between the middle of September and the end of September. Once October hit it was just gone, gone, gone.’
A company spokesperson added they have ‘experienced a few scares this Halloween season’ after enduring delays and expensive shipping costs.
Shoppers further raged online last year in the disappointment of stores lacking Halloween decor.