It was a case of this or that for executives at Hershey on the production line.
With the perfect recipe for product shortages, pandemics, conflict in Ukraine and sky-rocketing costs; the famed candy maker had to choose whether to focus on making every day treats or seasonal goodies. They chose the former.
The same production lines are used to make everyday treats as the seasonal goodies, so ramping up production was going to come at an output cost for one of them.
The seasonal time from Halloween through to the Christmas holidays is a big one for the treat maker as it makes up a tenth of Hershey’s yearly sales.
Despite their net sales increasing by more than 19 per cent from April to June, their costs have also risen.
Their supply costs have increased by 6.5 per cent, which often gets reflected on to the customer in the check-out lane.
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