U.S. retailers are ramping up discounts on Hershey Co. products as Halloween approaches. This comes after the company raised prices due to tariffs and cocoa inflation, according to a report from Reuters.
By early October, over half of Hershey’s candies were available at discounted prices in a prominent mass retailer, as revealed in a survey conducted by Datasembly.
Additionally, a research note from investment bank Jefferies indicated that among 31 tracked food manufacturers, Hershey saw one of the highest increases in discounted product sales during the four weeks ending October 4.
As for Hershey’s response, there hasn’t been any immediate comment from the company regarding this matter on Thursday.
The push for discounts coincides with steady overall sales of chocolate candies over the last 12 weeks, even though prices rose by 8%, based on data from market research firm Sarkana.
Hershey’s CEO, Kirk Tanner, mentioned in an earnings call that Halloween sales have been disappointing, leading the company to consider adjustments in its seasonal product offerings and marketing strategies moving forward.
Interestingly, chocolate prices have surged almost 30% since last Halloween.
In fact, prices are now about 78% higher than they were five years ago, with candy overall up 39% since February 2020, drawing from statistics from Sarcana and the Bureau of Labor Statistics.
FinanceBuzz’s research notes that the average price for a 100-piece bag of assorted Halloween candy has climbed to $16.39, significantly up from $9.19 in 2020.
Experts attribute these price increases to new tariffs, rising food inflation, challenging harvests in West Africa, and a global cocoa shortage influenced by climate change.
In response, candy makers are shrinking product sizes and trying out new flavors, including fruit-infused, sour, chili-covered, and gooey freeze-dried options. Of course, there’s also the classic candy corn.
The National Retail Federation (NRF) has reported that nearly 80% of Halloween shoppers anticipate higher costs this year. It seems that practicality is shaping consumers’ candy choices, as reflected in recent e-commerce data.
