If you want to have a happy Halloween, you better stock up on Kit Kats, Kisses, and Reese’s Peanut Butter Cups while you can.
In prepared remarks about the company's second-quarter results Thursday, Hershey CEO Michele Buck warned, “We will not be able to fully meet consumer demand.”
It’s simply a problem of supply and demand. According to CNN, consumers are demanding more regular and Halloween-themed candy than Hershey can make. At least right now.
Demand for the sugary snacks skyrocketed during the pandemic, and haven’t really calmed down. Couple that with the fact that interest for Halloween has gotten stronger, the demand for candy is high, but Hershey just can’t keep up.
Hershey uses the same manufacturing lines for its regular and seasonal products, which means it’s impossible to increase production of both regular sweets and Halloween or holiday items. Instead, it has to do one or the other.
Buck said, "We had a strategy of prioritizing everyday on-shelf availability. That was a choice that we needed to make. It was a tough decision."
Hershey is also still struggling with supply chain issues, including higher dairy prices and scarce ingredients. In order to get the ingredients required, Hershey has had to source them from other suppliers, which is costly.
Buck says these issues are largely related to the war in Ukraine.
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