Hershey Not Able To Make Enough Candy For Halloween?
Hershey has found itself in a bind which will come to the dismay of many this Halloween, as there won't be enough candy on store shelves.
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As the end of summer draws near, retailers are gearing up for the upcoming fall holidays. Kicking off the celebratory season is Halloween. Parents all over the country prepare themselves for at least one sugar-filled night as their kids race house to house collecting treats. Most years, store shelves are packed full of Halloween-themed sugary treats. This year may be different, though. This week Hershey announced that it won’t be able to meet consumer demand.
The Hershey Company was founded in 1894 when its first product, Hershey Cocoa Powder, hit store shelves. These days it is well-known for its beloved chocolate bars, which it began producing in 1900. But they have grown significantly since then. Not only do they offer plenty of sweet options beyond chocolate, but they have also acquired multiple companies over the years. Now, brands such as York, Cadbury, and Jolly Rancher also fall under the broader Hershey name.
Regardless of candy preference, consumers of all ages will deeply feel the lack of available Halloween candy. According to Hershey, they have seen a dramatic increase in demand for their treats during the pandemic. On the surface, this is great news for the company. They have seen an increase in profits as a result.
The problem lies behind the scenes. They have a limited number of production facilities shared for both regular and seasonal production. So, Hershey is running out of time and space to make their beloved products. They plan on increasing their production capacity in the future. But it will not be in time to stock the shelves with seasonal treats this year.
With demand for their regular, everyday products continuing to increase, Hershey leadership faced an important decision: Stock store shelves with the usual favorites or let the shelves go bare to ramp up seasonal production. They made the tough call of sticking with tried and true daily favorites to prevent a dip in overall sales.
Additionally, as with every other industry, Hershey has begun experiencing trouble on both ends of the supply chain. Ingredients are harder to come by for every food manufacturer, which only serves to delay their production ability. Many of the core ingredients found in Hershey products are sourced from overseas. Hershey CEO Ken Buck says that the war in Ukraine is directly impacting their ability to source some of these items.
On top of scarce ingredients, other supply chain issues are impacting Hershey’s ability to meet consumer demand. With increased shipping costs and delays in the shipments themselves, it is becoming increasingly difficult to stock shelves with even the core offerings.
So, if you like to wait until after a holiday has passed to capitalize on the usual deep discounts, you will likely end up empty-handed. Make sure to buy enough candy to hand out on Halloween night (and snack on beforehand) to ensure you have what you need. Between high demand, ingredient shortages, and supply chain issues, Hershey will likely not be the only retailer offering slim pickings this holiday season.
