American retailers are offering discounts on Hershey products ahead of Halloween as the candy maker raised prices because of tariffs and cocoa inflation, Reuters reported.
Data from investment bank Jeffries and Datasembly indicated Hershey was among food makers with the largest volume of products sold at a discount in the four weeks leading up to Oct. 4, compared to the year prior, Reuters reported. The outlet also said the data showed one U.S. retailer put more than half of Hershey’s seasonal candy on sale by the start of this month.
The Jeffries data reportedly covered all Hershey products, including salty snacks. Hershey announced in July it would be instituting a double-digit price increase on average on its candy, but a company spokesperson said Halloween sweets were not included in that measure, Reuters reported.
A Hershey spokesperson disputed the report’s claims. In a statement to FOX Business, the spokesperson said, “Halloween candy has been discounted less, not more, than last year.”
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“According to Circana data, the percentage of Halloween candy sales (across the category) on discount is lower versus the prior year for the period ending 10/19,” the spokesperson continued. “Discounts on Hershey seasonal candy are less than last year. Hershey’s percentage of sales on discount is lower versus the prior year, both in dollar sales and volume (poundage), for the period ending 10/19 and season-to-date.”
Hershey CEO Kirk Tanner said in an earnings call Thursday that the company is recording disappointing Halloween sales and would adjust its seasonal product and marketing strategies going forward, according to The Wall Street Journal.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HSY | THE HERSHEY CO. | 178.66 | +0.39 | +0.22% |
Meanwhile, the cost of chocolate has surged nearly 30% since last Halloween. It’s up almost 78% from five years ago, according to Circana and the Bureau of Labor Statistics, while candy and gum overall have climbed 39% since February 2020.
A FinanceBuzz study found that a 100-piece bag of assorted Halloween candy now averages $16.39, up from $9.19 in 2020.
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In addition to new tariffs and broader grocery inflation, experts say a global cocoa shortage tied to poor harvests and climate shifts in West Africa has sent cocoa prices soaring.
Candy makers are responding by shrinking bars and experimenting with new products, including fruit-flavored, sour, chili-coated, goo-filled and freeze-dried sweets, as well as more cocoa-free white chocolate and crème options — and candy corn, of course.
Nearly 80% of Halloween shoppers expect to pay more this year, according to the National Retail Federation (NRF), and recent e-commerce data suggests practicality is driving candy picks.
Fox News Digital’s Deirdre Bardolf contributed to this report.
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