Supply chain issues and the war in Ukraine have Hershey warning that a candy shortage could become a bitter reality this fall.
Hershey CEO Michele Buck blamed the ongoing supply chain issues induced by the COVID-19 pandemic as well as the ongoing violence in Ukraine as issues that would likely lead to a shortage just in time for Halloween, Reuters reported. Buck said the company has been focused on meeting demand during the nonholiday season, which may leave the company in short supply come Halloween.
Hershey uses the same manufacturing lines for both its regular and seasonal products, CNN reported.
“We had a strategy of prioritizing everyday on-shelf availability,” Buck said to CNN. “That was a choice that we needed to make. It was a tough decision.”
Halloween is Hershey’s busiest time of the year and accounts for 10% of the company’s annual sales, Reuters reported.
Despite the potential for shortages, Hershey said in a news release that profit from its sales growth is expected to more than offset any losses.
Hershey told CNN that it is adding more manufacturing lines and hopes to be able to meet future demand.
©2022 Cox Media Group
