Autumn brings gorgeous leaves, football games, and the candy-loving holiday Halloween. One of the world's leading chocolate manufacturers expects a candy scarcity this Halloween.
Hershey officials said on July 28 that supply chain challenges have plagued their operations this year, causing seasonal items to be overlooked. This could cause a scarcity of Hershey sweets for Halloween.
The company said the turmoil in Ukraine has made edible oil, cocoa, and other candy-making components tougher to get. Since the pandemic began, Hershey and other candy producers have seen soaring demand.
According to National Confectioners Association president and CEO John Downs, chocolate and candy sales rose 11% in 2021. In two years, more people bought confectionery. 2019-2020 saw a 15% increase.
Hershey's sales rose 19% from last year's third quarter. To keep up with demand, the company has emphasised stocking shelves now while delaying certain seasonal production, which usually begins in the spring.
This "difficult decision" will hurt the company before Halloween. This season is the candymaker's busiest. Reuters says Hershey's orange and black candies account for 10% of annual sales. Shortages may also affect the winter holidays.
Hershey CFO Steve Voskuil said "all hands on deck" to get production back on track and avert a Halloween candy scarcity.
Even with this slight setback, Hershey's CEO Michele Buck guaranteed buyers that 2022 sales will be greater than last year's thanks to a successful first half of the year combined with boosted prices and expectations for continued high demand.