Retailers, consumers and prices
Check Out Line: Commodities trump kisses at Hershey
Check Out how higher commodity costs offset the benefit of a higher prices at Hershey.
Back in August, Hershey announced a roughly 10-percent price increase in the United States as it tried to deal with higher costs for cocoa, corn sweetener, sugar and peanuts.
But those higher costs, which other food companies are also battling, offset additional revenue generated by the August price bump, Chief Executive David West said on Thursday.
West added during a conference call that the company’s overall premium chocolate segment — which includes brands like Bliss, Extra Dark and Cacao Reserve – is slowing.
The maker of Hershey’s Kisses and Reese’s peanut butter cups posted quarterly earnings that were in line with Wall Street’s expectations but said it expects slower sales growth in 2009.
Maybe Halloween will bring some cheer for the candy maker?
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