Hershey, the maker of popular candies like Reese’s, Kit Kat, and Twizzlers, is gearing up for Halloween sales. This year, it appears that customers are shopping for trick-or-treat candy closer to the holiday. Last year, due to supply chain and availability concerns, many customers bought their Halloween candy early. Although it’s too early to predict this year’s outcome, so far, Halloween candy sales have been slower than last year.
As Halloween approaches, Hershey is hoping for a strong performance this weekend to meet its sales targets. In recent years, Halloween has become a critical period for the company, accounting for 25-30% of its annual business.
Hershey is experiencing difficulties on several fronts. Cocoa prices are on the rise, supply chain issues have plagued the cocoa industry, and many consumers are now facing budget constraints and are more sensitive to pricing.
To cater to budget-conscious consumers, Hershey is expanding its presence in dollar stores and discount outlets. They are also exploring the option of selling smaller-sized candies at more affordable prices.
But Hershey executives remain positive that Halloween will bring the candy buying boom that the company needs. Last week, CEO Michele Buck said, “With Halloween next Tuesday, we still have several important selling days to go”.