Copyright Fox Business
American retailers are offering more discounts on Hershey products ahead of Halloween as the candymaker raised prices because of tariffs and cocoa inflation, Reuters reported, citing data. The news agency said by early October, over half of Hershey candy had been put on sale by one mass retailer, according to findings from the data provider Datasembly. Reuters also cited a research note saying Hershey is among 31 food makers tracked by Jeffries, an investment bank, that had the biggest hike in volume of goods sold at a discount across a four-week period that ended on Oct. 4. The Hershey Company did not immediately respond Thursday to a request for comment from FOX Business. CANDY BARS RECALLED DAYS BEFORE HALLOWEEN OVER ‘LIFE-THREATENING’ ALLERGEN RISK The discounts were happening as overall chocolate candy sales per unit remained flat in a 12-week period ending on Oct. 5, despite prices rising by 8%, Reuters reported, citing data from market research firm Circana. Hershey CEO Kirk Tanner said in an earnings call Thursday that the company is recording disappointing Halloween sales and would adjust its seasonal product and marketing strategies going forward, according to The Wall Street Journal. Ticker Security Last Change Change % HSY THE HERSHEY CO. 171.26 -3.78 -2.16% Meanwhile, the cost of chocolate has surged nearly 30% since last Halloween. It's up almost 78% from five years ago, according to Circana and the Bureau of Labor Statistics, while candy and gum overall have climbed 39% since February 2020. A FinanceBuzz study found that a 100-piece bag of assorted Halloween candy now averages $16.39, up from $9.19 in 2020. WALMART REVEALS DATES FOR BLACK FRIDAY DEALS, CYBER MONDAY SALE In addition to new tariffs and broader grocery inflation, experts say a global cocoa shortage tied to poor harvests and climate shifts in West Africa has sent cocoa prices soaring. Candy makers are responding by shrinking bars and experimenting with new products, including fruit-flavored, sour, chili-coated, goo-filled and freeze-dried sweets, as well as more cocoa-free white chocolate and crème options — and candy corn, of course. CLICK HERE TO READ MORE ON FOX BUSINESS Nearly 80% of Halloween shoppers expect to pay more this year, according to the National Retail Federation (NRF), and recent e-commerce data suggests practicality is driving candy picks.
