Hershey increases prices nearly 10%
April 6, 2011
The Hershey Co. has announced that its products are going to cost almost 10% more now, pointing to increase costs for raw materials, packaging, fuel, utilities and transportation.
The iconic U.S. candy maker is increasing wholesale prices an average of 9.7% for the company’s instant, consumable, multi-pack, packaged candy and grocery lines effective immediately, the company said in a media release. The changes will affect the majority of Hershey’s U.S., Puerto Rico and export portfolio.
“Our products and our category will continue to provide the value and quality that consumers expect,” says David J. West, president and ceo. “And this action will position Hershey to achieve the opportunities that lie ahead.”
Direct buying customers will be able to purchase transitional amounts of product into May, West explains. Along those same lines, he says Hershey doesn’t expect the financial benefit from the change to have an impact on its earnings until 2012.
West adds that Hershey plans to work with retail customers to ensure that the implementation of the price increase is supported with customer trade promotions and merchandising.
Hershey oversees a number of popular brands, including Hershey’s, Hershey’s Kisses, Reese’s, Kit Kat and Twizzlers.
For more information, visit http://www.hersheys.com/.