Hershey, Nestle warn of Halloween candy shortages
Posted July 30, 2022 8:06 am.
Trick-or-treaters may find their loot bags a little lighter during Halloween this year.
Hershey warns that due to supply-chain issues and sky-high demand there could be a possible shortage of chocolate and candy this fall.
The candymaker reports even as sales have soared since 2020 and it continues to add production capacity, it just can’t keep up with the demand.
Hershey says it has been hit by a shortage of essential ingredients like cocoa, pointing to supply chain issues triggered by the COVID-19 pandemic and the war in Ukraine, which means it likely won’t be able to meet the high demand at Halloween, considered its busiest time of the year.
Halloween accounts for around 10 per cent of the company’s annual sales, says Hershey.
Global food giant Nestle, which makes KitKat, Aero and Smarties candy, acknowledged similar struggles despite reporting higher sales in the first half of the year. The Swiss company says prices increased by 6.5 per cent as inflation soared around the world.
CEO Mark Schneider said the company “limited the impact of unprecedented inflationary pressures and supply chain constraints” and pointed to “growing food insecurity around the world and heightened climate concerns” as driving its mission.
With soaring inflation eating into people’s spending power, Nestle said it works to keep its products affordable based on wages in different parts of the world and focuses on nutrition education and boosting nutrients in products based on local needs.
Nestle, however, also has turned to “shrinkflation,” slimming down its Nescafe Azera Americano coffee tins from 100 grams to 90 grams in the United Kingdom but charging the same price.
The company had faced criticism for sales in Russia after the country invaded Ukraine. It previously said it would pull KitKat, Nesquik milkshake powder and other brands but continue to supply essentials like medications and baby formula.
Files from The Associated Press were used in this report