Hershey, PA — Aiming to offset rising input costs, The Hershey Co. is increasing prices approximately eight percent across the portfolio of consumable, multi-pack, packaged candy and grocery lines.
The company reports prices have risen significantly for key inputs including raw materials, transportation, packaging and fuel, which are anticipated to continue increasing heading into next year.
For the next four weeks, direct-buying customers will be able to purchase transitional amounts of products at price points prior to today’s announcement, according to Hershey. The company does not expect these price increases to impact its 2014 results.
Michele Buck, North American president, says: “We are a gross margin-focused company and remain committed to our consumer-centric business model of bringing insights to merchandising, programming, advertising and innovation that will benefit Hershey and the category.”
In addition, the company reports anticipated growth toward the low end of its five to seven percent target for 2014 as a result of expected volume elasticity on everyday take-home items and instant consumables, according to Hershey.
Second quarter net sales are expected to grow 4.5 percent, the company reports.