Hershey Will Be Unable To Meet Consumer Demand This Halloween
Halloween is still a few months away, but the holiday is already looking a lot less sweet.
CNN Business reports that during remarks this week about Hershey's second-quarter earnings, the company shared troubling news regarding its supply of Halloween candy. According to Hershey CEO Michele Buck, the chocolate manufacturer "will not be able to fully meet consumer demand" this Halloween.
With shortages and supply chain issues showing no signs of slowing, Hershey's inability to meet demand is a familiar tale. From sriracha to avocados, a number of food products have taken a hit lately.
For Hershey in particular, the company has been met with high demand for both regular candy and Halloween candy. This might seem like a pretty sweet deal for the candy titan, but manufacturing capacities have left the company limited.
According to CNN Business, Hershey uses the same manufacturing lines for all of its candies. Due to this production method, the Pennsylvania-based company can't increase production for regular candy and Halloween and other seasonal candies.
"We had a strategy of prioritizing everyday on-shelf availability," Buck said. "That was a choice that we needed to make. It was a tough decision."
Like many companies, Hershey is also struggling with supply-chain issues, which have become costly due to higher dairy prices and scarce ingredients. Fortunately, it's not all tricks and no treats. The good news is Hershey does plan on adding more manufacturing lines to meet demand over the next few years.
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