The candy industry is warning that chocoholics will pay more for their Snickers, Kit Kats and Hershey bars this Halloween as supply chain shortages lag behind a growing appetite for sweets that started during the pandemic.
In their half-year reports last Thursday, Pennsylvania-based Hershey Co. and Switzerland-based Nestle said pandemic-driven global supply chain disruptions and the Russia-Ukraine war have made cocoa and other ingredients scarcer and more expensive as demand soars.
The maker of Nestle Crunch announced a 6.5% price increase to offset lower profit margins amid “significant and unprecedented cost inflation.” Nestle now expects an 8% increase in sales this year, higher than its previous 5% estimate.